13Quality contract schemes
(1)A local transport authority, or two or more such authorities acting jointly, may make a quality contract scheme covering the whole or any part of their area, or combined area, if they are satisfied that—
(a)making the proposed scheme is necessary for the purpose of implementing their relevant general policies in the area to which the proposed scheme relates; and
(b)the proposed scheme will implement those policies in a way which is economic, efficient and effective.
(2)In this section (other than subsection (1) above) and, subject to subsection (3) below, in sections 15 to 25 of this Act any reference to a local transport authority shall be construed, in any case where a quality contract scheme is made (or proposed to be made) by two or more such authorities acting jointly, as a reference to both (or, as the case may be, all) of those authorities; and in such a case any reference to the area of an authority shall be construed as a reference to the combined area of those authorities.
(3)Subsection (2) above shall not apply to sections 17(4), 18(4)(b) and (5) and 23(4) of this Act.
(4)A quality contract scheme may not be made unless the authority have—
(a)complied with the notice and consultation requirements imposed by section 15 of this Act; and
(b)obtained the approval of the Scottish Ministers in accordance with section 16 of this Act.
(5)A quality contract scheme is a scheme under which—
(a)the authority determine—
(i)what local services should be provided in the area to which the scheme relates;
(ii)the standards to which they should be provided;
(iii)any additional facilities or services which should be provided in that area; and
(b)local services (other than services excluded from the scheme by virtue of provision such as is mentioned in section 14(3) of this Act) may be provided in the area to which the scheme relates only under a quality contract.
(6)In this Part of this Act “quality contract”, in relation to a quality contract scheme, means an agreement entered into under section 18 or 19 of this Act under which—
(a)the authority grant to another person the exclusive right to operate the local services to which the contract relates; and
(b)that person undertakes to provide those services on such terms (including in particular as to frequency, fares and standard of service) as may be specified in the agreement.
(7)A quality contract may—
(a)include provision for—
(i)the making of payments by the authority to the person undertaking to provide the local service; or
(ii)the making of payments by the person undertaking to provide the local service to the authority; or
(b)make no such provision as is mentioned in paragraph (a) above.
(8)A quality contract may include provision requiring one or more of the parties to provide additional facilities or services.
(9)Section 88(1) of the 1985 Act (application to subsidy agreements of sections 89 to 92 of that Act) shall not apply in relation to quality contracts.