Transport Bill - continued        House of Lords
PART II, LOCAL TRANSPORT - continued

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Financial and competition provisions
Agreements providing for service subsidies.     152. - (1) Part V of the Transport Act 1985 (expenditure on public passenger transport services) is amended as follows.
 
      (2) In section 89 (obligation to invite tenders for subsidised services), for subsections (7) and (8) substitute-
 
 
    "(7) An authority issuing an invitation to tender under this section shall, in determining whether to accept a tender submitted in response to the invitation or which (if any) of several such tenders to accept, have regard in particular to-
 
 
    (a) a combination of economy, efficiency and effectiveness;
 
    (b) the implementation of the policies set out in the appropriate bus strategy; and
 
    (c) the reduction or limitation of traffic congestion, noise or air pollution.
      (8) In subsection (7)(b) above "the appropriate bus strategy" means-
 
 
    (a) in the case of a local transport authority (within the meaning of section 108(4) of the Transport Act 2000), their bus strategy;
 
    (b) in the case of a district council which is not such an authority, the bus strategy of the council for the county in which the district is situated; and
 
    (c) in the case of a Passenger Transport Executive for a passenger transport area, the bus strategy made jointly by the Passenger Transport Authority for the area and the councils for the metropolitan districts comprised in the area."
      (3) In section 90(3) (duty of authority to publish reasons for considering that payment of subsidies to secure service in accordance with accepted tender is conducive to achieving most effective and economic application of funds), for the words from "is conducive" to the end substitute "accords with section 89(7) of this Act."
 
      (4) In section 92(1) (authorities subsidising public passenger transport services not to inhibit competition between persons providing or seeking to provide such services in their area), for the words from "so conduct" to the end substitute "have regard to the interests of the public and of persons providing public passenger transport services in their area."
 
Competition test for exercise of bus functions.     153. Schedule 10 contains provision applying a competition test in relation to the exercise of functions relating to quality partnership schemes, ticketing schemes and subsidised local services.
 
Grants to bus service operators.     154. - (1) The Secretary of State with the approval of the Treasury (as respects England) or the National Assembly for Wales (as respects Wales) may make grants to operators of eligible bus services towards their costs in operating those services.
 
      (2) The Secretary of State with the approval of the Treasury (as respects England) or the National Assembly for Wales (as respects Wales) may make provision by regulations as to the method of calculation of grants.
 
      (3) Subject to the provisions of any such regulations, grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as may be determined by-
 
 
    (a) the Secretary of State with the approval of the Treasury (as respects England), or
 
    (b) the National Assembly for Wales (as respects Wales).
      (4) A determination under subsection (3) may be made either generally or in relation to particular cases or classes of case.
 
      (5) In this section "eligible bus services" means bus services of a class (or using vehicles of a class) prescribed by regulations made by the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).
 
      (6) Section 92 of the Finance Act 1965 (grants towards duty charged on bus fuel) and section 111 of the Transport Act 1985 (unregistered and unreliable local services: reduction of fuel duty grant) cease to have effect.
 
Penalties.     155. - (1) Where the traffic commissioner for any traffic area is satisfied that the operator of a local service has, without reasonable excuse-
 
 
    (a) failed to operate a local service registered under section 6 of the Transport Act 1985,
 
    (b) operated a local service in contravention of that section or section 118(4) or 129(1)(b) of this Act, or
 
    (c) failed to comply with section 138 or 140(3) of this Act,
       he may impose a penalty on the operator.
 
      (2) The amount of the penalty shall be such amount as the traffic commissioner thinks fit in all the circumstances of the case, not exceeding the amount determined in accordance with subsection (3).
 
      (3) That amount is-
 
 
    (a) £550, or
 
    (b) such other amount as the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales) may by order specify,
       multiplied by the total number of vehicles which the operator is licensed to use under all the PSV operator's licences held by him.
 
      (4) The penalty is payable to the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).
 
      (5) After imposing the penalty, the traffic commissioner must at once give notice in writing to-
 
 
    (a) the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales), and
 
    (b) the operator.
      (6) The operator may appeal to the Transport Tribunal against the imposition of the penalty.
 
      (7) An amount due under this section is recoverable as a civil debt.
 
Non-metropolitan transport grants.     156. - (1) The Secretary of State with the approval of the Treasury (as respects England) or the National Assembly for Wales (as respects Wales) may make grants to non-metropolitan transport authorities for the purpose of-
 
 
    (a) securing the establishment, continuance or improvement of any public passenger transport service which in his or its opinion is or will be for the benefit of persons residing in their area, or
 
    (b) securing the provision of new facilities for, or new services ancillary to, any such service which in his or its opinion are or will be for the benefit of such persons.
      (2) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as may be determined by-
 
 
    (a) the Secretary of State with the approval of the Treasury (as respects England), or
 
    (b) the National Assembly for Wales (as respects Wales).
      (3) A determination under subsection (2) may be made either generally or in relation to particular cases or classes of case.
 
      (4) In this section "non-metropolitan transport authority" means-
 
 
    (a) a county council in England,
 
    (b) a council of a non-metropolitan district in England comprised in an area for which there is no county council, or
 
    (c) a county council or county borough council in Wales.
Grants to Passenger Transport Authorities.     157. - (1) The Secretary of State may, with the approval of the Treasury, make grants to the Passenger Transport Authority for a passenger transport area in England for the purpose of enabling the Authority, or the Passenger Transport Executive for the area, to carry out any of their functions.
 
      (2) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine.
 
      (3) A determination under subsection (2) may be made either generally or in relation to particular cases or classes of case.
 
 
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