Transport Act 1985

Grants for services in rural areas E+W+S

108 Grants for establishment, etc., of rural passenger services in Wales and Scotland. E+W+S

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person for the purpose of securing the establishment, continuance or improvement of any public passenger transport service which in the opinion of the Secretary of State is or will be for the benefit of persons residing in any rural area in Wales or Scotland.

(2) In the case of any grant under this section for the purpose of securing the continuance of an existing service—

(a) the service must be one which was established with the assistance of a grant under this section; and

(b) the grant must be for securing its continuance during such period from the time when it was first operated as appears to the Secretary of State to be appropriate in the case of that service.

(3) In the case of any grant under this section for the purpose of securing the improvement of an existing service the improvement in view must be one which appears to the Secretary of State to involve an innovative approach to the use of vehicles, equipment or other facilities in providing the service.

(4) 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, either generally or in relation to any particular cases or classes of case.

109 Transitional rural bus grants. E+W+S

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person in respect of qualifying mileage run at any time during the period of four years beginning with the date on which this section comes into force by vehicles used by that person in operating a service which at the time in question is a service eligible for grant under this section.

(2) A service is eligible for grant under this section at any time when—

(a) it is a service qualifying for fuel duty grant;

(b) it is being operated wholly or partly within a rural area in Great Britain (outside London); and

(c) it meets such other requirements as the Secretary of State thinks fit to impose;

and in subsection (1) above “qualifying mileage” means, in relation to any vehicle, mileage run by that vehicle within any such rural area.

(3) 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, either generally or in relation to any particular cases or classes of case.