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Transport Act 1968

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Part IIIU.K. Bus and Ferry Services

National Bus Company and Scottish Transport GroupU.K.

24 Establishment and general duties of Bus Company and Scottish Group.U.K.

(1)There shall be constituted in accordance with Schedule 1 to this Act—

(a)a public authority to be called the National Bus Company (hereafter in this Act referred to as “the Bus Company”); and

(b)a public authority to be called the Scottish Transport Group (hereafter in this Act referred to as “the Scottish Group”).

(2)[F1Where any area has been designated under section 9(1) of this Act][F1In the case of any area which is a passenger transport area for the purposes of Part II of this Act], it shall be the duty—

(a)of the Executive for that area; and

(b)of the Bus Company, or of the Scottish Group, or of both that Company and that Group (as may be appropriate having regard to where that area is situated), either acting directly, or acting indirectly through subsidiaries of that Company or Group,

to co-operate with one another in the re-organisation of bus services within, to and from that area, and for that purpose to enter into agreements as to the services to be provided by the Company or Group or their subsidiaries in or in connection with that area, and as to the terms on which those services are to be provided; and any such agreement may include arrangements for the transfer between the parties thereto in such manner and on such terms (including payments by one of the parties to the other) as may be provided for by the agreement of specified property, rights or liabilities.

[F2(3)It shall be the duty respectively—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(b)of the Bus Company and the Railways Board;

(c)of the Scottish Group and the Railways Board;

(d)of the Bus Company and the Scottish Group,

either directly, or indirectly through subsidiaries of theirs, to co-operate with one another in the exercise and performance of their respective functions for the purpose of co-ordinating the passenger transport services provided by, or by subsidiaries of, those authorities respectively and to afford to one another such information as to proposed changes in their services as may be reasonably required for that purpose.]

(4)[F4Subsections (2) and (3)][F4Subsection (2)] of this section shall not be construed as imposing, either directly or indirectly, on any of the authorities mentioned therein any form of duty or liability enforceable by proceedings before any court to which that authority would not otherwise be subject.

Textual Amendments

F1Words commencing “In the case of any area" substituted (E.W.S.) for words commencing “Where any area" by Transport Act 1985 (c. 67, SIF 126), s. 57(6), Sch. 3 para. 15

F4Words “Subsection (2)" substituted (E.W.S.) for words “Subsections (2) and (3)" by Transport Act 1985 (c. 67, SIF 126), s. 113(2)

Modifications etc. (not altering text)

C2Power to exclude s. 24(2) conferred (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 60(2)

C4Power to repeal s. 24(2) conferred (E.W.S.) by Transport Act 1985 (c. 67, SIF 126), s. 60(7)(a)(8)

25 General powers of Bus Company.U.K.

Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Bus Company shall have power—

(a)to carry passengers by road, whether in or outside England and Wales;

(b)to carry passengers by vessel or hovercraft where that carriage forms part of a passenger transport service which includes the carriage of passengers by road by the Company or a subsidiary of theirs or by some other person, whether or not as agent for the Company, in pursuance of an agreement with the Company;

(c)where any vehicle or vessel is used for the carriage of passengers in pursuance of paragraph (a) or (b) of this section, to carry also luggage or other goods in that vehicle or a trailer drawn thereby or in that vessel;

(d)to store goods which have been or are to be carried by the Company in pursuance of paragraph (c) of this section or by a subsidiary of the Company, and, so far as any premises provided for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(e)to let passenger vehicles for hire with or without trailers for the carriage of goods;

(f)to carry on business as travel agents;

(g)to enter into and carry out agreements with any person engaged in the provision of transport services, by whatever form of transport, for co-ordinating the activities of that person with those of the Bus Company, and in particular for the provision of combined services for the through carriage of passengers or goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates and for the pooling of receipts or expenses;

(h)to join with any person engaged as mentioned in paragraph (g) of this section in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Bus Company or that person have power to carry on;

(j)with the consent of the Minister, to carry on any activities which the Company would not apart from this paragraph have power to carry on but which a subsidiary of the Company was carrying on immediately before it became such a subsidiary.

26 General powers of Scottish Group.U.K.

(1)Subject and without prejudice to the provisions of, or of any enactment applied by, sections 47 to 52 of this Act, the Scottish Group shall have power—

(a)to carry passengers by road, subway or water or by hovercraft, whether in or outside Scotland;

(b)to carry goods by road or water or by hovercraft within, or to or from any place situated within, the [F5Highland region, the islands areas of Orkney, Shetland and the Western Isles, the Argyll district and in the Cunninghame district the former burgh of Millport and the former districts of Arran and Cumbrae];

(c)where any vehicle or vessel is used for the carriage of passengers in pursuance of paragraph (a) of this subsection, to carry also luggage and other goods in that vehicle or a trailer drawn thereby or in that vessel;

(d)to consign goods on behalf of other persons;

(e)to store goods which have been or are to be carried by the Group or by a subsidiary of theirs and—

(i)so far as any premises provided by the Group for the purposes of that or any other part of their business are not required for those purposes, to use them to provide facilities for the storage of other goods;

(ii)with the consent of the Secretary of State to provide such facilities at any other premises;

(f)to carry on business as travel agents;

(g)to enter into and carry out agreements with any person engaged in the provision of transport services, by whatever form of transport, for co-ordinating the activities of that person with those of the Group, and in particular for the provision of combined services for the through carriage of passengers or goods, whether by the same or partly by one and partly by another form of transport, for the quoting of through rates, and for the pooling of receipts or expenses;

(h)to join with any person engaged as mentioned in paragraph (g) of this subsection in forming, promoting and assisting a company for carrying on any activities in connection with such combined services as are so mentioned which the Group or that person have power to carry on;

(j)either alone or together with any other person, to provide maintain and operate depots for the sorting of goods, with facilities for the reception, storage, weighing and handling of goods and for compliance with the requirements of the enactments relating to customs and excise;

(k)to let for hire any vehicle, vessel or other means of transport;

(l)to operate harbours;

(m)with the consent of the Secretary of State, to carry on any activities which the Group would not apart from this paragraph have power to carry on but which a subsidiary of the Group was carrying on immediately before it became such a subsidiary.

(2)The Scottish Group shall not be regarded as common carriers in respect of any of their activities concerned with the carriage of goods.

27 Financial provisions with respect to Bus Company and Scottish Group.U.K.

(1)Subject and without prejudice to the provisions of section 41 of this Act, the following provisions of the Act of 1962, namely—

(a)section 18 (financial duty of Boards);

(b)section 19 (borrowing powers of Boards);

(c)section 20 (loans out of National Loans Fund);

(d)section 21 (Treasury guarantees);

(e)section 24 (accounts),

shall apply to the Bus Company and to the Scottish Group as they apply to the Boards, except that any reference in those sections to the Minister shall, in relation to the Scottish Group, be construed as a reference to the Secretary of State.

(2)The Bus Company and the Scottish Group shall each assume a commencing capital debt in accordance with the provisions of Schedule 2 to this Act.

(3)The aggregate amount outstanding in respect of—

(a)the principal of any money borrowed by the Bus Company or, as the case may be, the Scottish Group, under section 19 of the Act of 1962, and

(b)the commencing capital debt of that Company or, as the case may be, Group,

shall not exceed—

(i)for the Bus Company, [F6the limit mentioned in subsection (4) of this section];

(ii)for the Scottish Group, £50 million.

[F7(4)The limit referred to in subsection (3)(i) of this section is £250 million or such greater sum not exceeding £275 million as the Secretary of State may specify by order.

(5)No order shall be made under subsection (4) of this section unless a draft of the order has been laid before and approved by resolution of the House of Commons.]

28 Transfer to Bus Company or Scottish Group of certain securities, rights and liabilities.U.K.

(1)On the appointed day for the purposes of this subsection—

(a)the securities of the bodies listed in Schedule 7 to this Act, so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

(b)any rights or liabilities on that day of that Company or subsidiary regarding the securities of any of those bodies, and

(c)the right to any money owed on that day to that Company or subsidiary by any of those bodies, and

(d)the liability represented by any money owed on that day by that Company or subsidiary to any of those bodies, and

(e)any rights and liabilities on that day of that Company in connection with Tilling Association Limited, and

(f)any rights and liabilities of the Holding Company under any agreement such as is mentioned in paragraph 6 of Schedule 5 to the Act of 1962 so far as subsisting in England or Wales,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Bus Company.

(2)On the appointed day for the purposes of this subsection—

(a)the securities of the following bodies, namely—

(i)David MacBrayne Limited; and

(ii)Scottish Bus Group Limited,

so far as beneficially owned on that day by the Holding Company or by any wholly-owned subsidiary of that Company, and

(b)the securities of the following body, namely, the Caledonian Steam Packet Company Limited, so far as beneficially owned on that day by the Railways Board, and

(c)any rights or liabilities on that day of the Holding Company or that subsidiary thereof or, as the case may be, of that Board regarding the securities of any of those bodies, and

(d)the right to any money owed on that day to the Holding Company or subsidiary or, as the case may be, to that Board by any of those bodies, and

(e)the liability represented by any money owed on that day by the Holding Company or subsidiary or, as the case may be, by that Board to any of those bodies, and

(f)any rights and liabilities of the Holding Company under any agreement such as is mentioned in paragraph 6 of Schedule 5 to the Act of 1962 so far as subsisting in Scotland,

shall, subject to subsection (3) of this section, be transferred to, and by virtue of this Act vest in, the Scottish Group.

(3)Where any of the securities referred to in subsection (1) or (2) of this section are beneficially owned as mentioned in that subsection but held by a nominee, that subsection shall operate only to transfer the beneficial interest in the securities; and paragraphs (c) and (d) of the said subsection (1) and paragraphs (d) and (e) of the said subsection (2) shall not apply to money owed in the ordinary course of trading.

(4)The Minister may by order made not later than the appointed day for the purposes of subsection (1) of this section, and the Minister and the Secretary of State acting jointly may by order made not later than the appointed day for the purposes of subsection (2) of this section, add to the said Schedule 7 or, as the case may be, to paragraph (a) or (b) of the said subsection (2), any body not for the time being listed therein if he is, or, as the case may be, they are, satisfied—

(a)that the activities of the body are similar to those of the bodies for the time being so listed, and

(b)that the Holding Company or a wholly-owned subsidiary thereof or, as the case may be, the Railways Board are for the time being the beneficial owners of any securities of that body.

(5)The rights and liabilities of the Holding Company under such agreements for the rendering of personal services by persons who immediately before the appointed day for the purposes of subsection (1) or, as the case may be, subsection (2) of this section, are employed by the Holding Company as may be determined in accordance with arrangements agreed between the Holding Company and the Bus Company or, as the case may be, between the Holding Company and the Scottish Group, or, in default of such agreement, in accordance with such arrangements as the Minister or, as the case may be, the Minister and the Secretary of State acting jointly may direct, shall on that day be transferred to, and by virtue of this Act vest in, the Bus Company or, as the case may be, the Scottish Group.

(6)Paragraph 2(3) and (4) of Schedule 4 to this Act shall apply to any transfer under subsection (5) of this section, and paragraphs 7 to 13 of that Schedule shall apply to any transfer under that subsection or under subsection (1) or (2) of this section; and in the application of any provision of that Schedule by virtue of this subsection to a transfer under the said subsection (2) any reference in that provision to the Minister shall be construed as a reference to the Minister and the Secretary of State acting jointly.

29 Transfer of certain property, rights and liabilities between Railways Board and Bus Company or Scottish Group.U.K.

(1)Before the appointed day for the purposes of the relevant transfer referred to in subsection (2) of this section, the Railways Board shall take steps to the satisfaction of the Minister to separate from the remainder of their undertaking the parts thereof concerned respectively—

(a)with the provision of road passenger transport services within or to and from the city of Sheffield, the county borough of Halifax, the county borough of Huddersfield or the borough of Todmorden; and

(b)with the provision of shipping services in Scotland by the Caledonian Steam Packet Company Limited, and with the provision by the Board of the ferry service to and from Kyle of Lochalsh and Kyleakin;

and the Board shall from time to time furnish the Minister with such information as he may require with respect to the property and interests which the Board propose to treat as included in each respectively of those parts of their undertaking, and the Minister may give directions to the Board as to the property, rights and liabilities to be so treated.

(2)Subject to subsection (3) of this section, on the relevant appointed day for the purposes of this subsection there shall be transferred to, and by virtue of this Act vest in, the Bus Company and the Scottish Group respectively, all the property, rights and liabilities comprised in the part of the Railways Board’s undertaking referred to in paragraph (a) or, as the case may be, paragraph (b) of subsection (1) of this section.

(3)Schedule 4 to this Act shall apply to any transfer under subsection (2) of this section, and that subsection shall have effect subject to the provisions of that Schedule; and in the application of any provision of that Schedule to a transfer affecting the Scottish Group, any reference in that provision to the Minister shall be construed as a reference to the Minister and the Secretary of State acting jointly.

[F8(4)Notwithstanding anything in section 4 of the Act of 1962, as from the appointed day for the purposes of the transfer under subsection (2) of this section to the Bus Company the Railways Board shall not have power to carry passengers by road except as permitted by subsection (1)(a)(iii) of the said section 4.]

(5)Subject to subsection (6) of this section—

(a)the Scottish Group and the Railways Board acting jointly may as occasion seems to them to require it make schemes for the transfer from one to another of the following bodies, namely, that Group, that Board and any wholly-owned subsidiary of that Group or Board, of any specified property, rights or liabilities, or of all property, rights or liabilities comprised in a specified part of their undertaking, being property, rights and liabilities held or subsisting for the purposes of or in connection with, or, as the case may be, a part of their undertaking concerned with, a transport service by water (including such a service by means of a hovercraft) which carries passengers and operates regularly between two or more points at least one of which is in Scotland;

(b)the Minister and the Secretary of State acting jointly may by order make any such provisions as aforesaid with respect to any of the bodies aforesaid.

(6)Subsections (3) to (7) of section 7 of this Act shall apply to any scheme, and subsections (3) to (6) of section 8 of this Act shall apply to any order, under subsection (5) of this section as they apply to a scheme under [F9subsection (1)(b) of the said section 7 or, as the case may be, to an order under subsection (1)(b) of the said section 8 making any such provision as is mentioned in the said section 7(1)(b), but as if for the reference in subsection (6)(a) of the said section 8 to the Railways Board there were substituted a reference to the Scottish Group and the Railways Board].

Relaxation of control over certain bus servicesE+W+S

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10E+W+S

31 Abolition of special control over bus services provided by local authorities outside their areas.E+W+S

(1)So much of subsection (1) of section 101 of the M1Road Traffic Act 1930 as requires a local authority to obtain the consent of the appropriate traffic commissioners before running public service vehicles outside the district of the authority shall cease to have effect, and accordingly—

(a)in that subsection for the words from “on any road within their district”to the end shall be substituted the words “ on any road inside or outside their district ”; and

(b)section 102 of that Act (which contains procedural provisions with respect to consents under subsection (1) of the said section 101) shall cease to have effect.

(2)Any provision in a local Act or in any order under Part VI of the M2Local Government Act 1933, Part VI of the M3Local Government (Scotland) Act 1947, or Part II of the M4Local Government Act 1958—

(a)imposing any requirement corresponding to that which ceases to have effect by virtue of the foregoing subsection; or

(b)in relation to any such requirement, applying or making provision corresponding to the said section 102,

together with section 38(6) of the said Act of 1958 (which, in certain cases, requires orders under the said Part II to contain such provisions as aforesaid) shall cease to have effect.

Assistance for bus and ferry servicesU.K.

32 New bus grants.E+W+S

(1)Subject to the provisions of this section, the Minister may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person operating public service vehicles in Great Britain towards approved capital expenditure incurred by that person in providing a new vehicle of a type approved for the purposes of this section by the Minister, being a vehicle which is provided for use by that person [F11wholly or mainly in the operation of bus services] in Great Britain and which first becomes available to that person for such use on or after such date, not being earlier than 1st September 1968, as the Minister may by order specify.

(2)In the foregoing subsection—

(a)the expression “approved capital expenditure” means expenditure appearing to the Minister to be of a capital nature and approved by him for the purposes of grant under this section;

(b)the expression “expenditure” in relation to the provision by a person of a vehicle includes—

(i)expenditure consisting of instalments under a hire-purchase agreement within the meaning of the M5Hire-Purchase Act 1965 or, as the case may be, the M6Hire-Purchase (Scotland) Act 1965, or otherwise consisting of instalments of or payments towards the purchase price of, or cost of providing, the vehicle; and

(ii)where the vehicle is provided by being manufactured or wholly or partly constructed by that person, such sum as appears to the Minister to be properly attributable to its provision by him in that manner;

(c)the expression “new” means unused and not second-hand.

[F12(d)bus service” has the same meaning as in section 92 of the M7Finance Act 1965].

(3)In making any grant under this section in respect of any vehicle the Minister shall impose such conditions for securing that the vehicle will be used as mentioned in subsection (1) of this section, and may impose such other conditions, as he thinks fit; and those conditions may include conditions for repayment in specified circumstances.

(4)Subject to subsection (5) of this section, the amount of any grant under this section shall be twenty-five per cent. of the approved capital expenditure in respect of which it is granted, and no amount by way of such a grant shall be paid in respect of a vehicle which first becomes available for such use as is mentioned in subsection (1) of this section after the date of the expiration of the period of seven years beginning with the date specified under the said subsection (1).

(5)The Minister may by order made with the consent of the Treasury—

(a)vary, as respects any vehicle first becoming available for such use as is mentioned in subsection (1) of this section on or after such date as may be specified in the order, the percentage specified in subsection (4) of this section; or

(b)amend the said subsection (4) by substituting for the date of the expiration of the period there mentioned such later date as may be specified in the order;

but no order shall be made under this subsection unless a draft thereof has been approved by resolution of each House of Parliament.

(6)The provisions of Schedule 8 to this Act shall have effect for the purpose of avoiding fraudulent applications for grant under this section and of securing the observance of any conditions attached to any such grant.

33(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

(3)So much of subsection (9) of the said section 92 as enables the Parliament of Northern Ireland to make laws for purposes similar to the purposes of the provisions of that section shall apply to those provisions as amended by subsection (1) of this section.

Textual Amendments

Modifications etc. (not altering text)

C5The text of s. 33(3), which is spent, is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

34 Assistance for rural bus or ferry services.E+W

(1)Any of the following councils, namely the council or any county,. . . F15 or [F16district] in England or Wales, any county, town or district council in Scotland, and the Council of the Isles of Scilly, or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any. . . F17 ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

[F18(1A)The Council of the Isles of Scilly may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of that Council that service is or will be for the benefit of persons residing in rural areas.]

(2), (3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19

Extent Information

E1This version of this provision extends to England and Wales only; a separate version has been created for Scotland only

Textual Amendments

[F2534 Assistance for rural bus or ferry service.S

(1)A regional, islands or district council or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

(2)A regional or islands council or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

(3)The Secretary of State may, with the approval of the Treasury, make grants in such cases and subject to such conditions as he thinks fit to any of the councils aforesaid in respect of expenditure incurred by that council in making grants under subsection (1) or (2) above, and any grant under this subsection in respect of expenditure in connection with a bus service shall be of an amount equal to half the expenditure in respect of which the grant is made.

(4)The Secretary of State may, with the approval of the Treasury make grants in such cases and subject to such conditions as he thinks fit to regional or islands councils in respect of expenditure incurred by such a council in providing a ferry service which in the opinion of the council is or will be for the benefit of persons residing in rural areas.]

Further provision relating to public service vehiclesE+W+S

35

(1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21

36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22E+W+S

37 Power for local authorities to acquire or dispose of public service vehicle undertakings.E+W+S

(1)Without prejudice to any powers apart from this section, any local authority within the meaning of Part V of the Road Traffic Act 1930 who, under powers conferred by section 101(1) of that Act or by any local Act or order, are running public service vehicles may,. . . F23

(a)acquire by agreement the whole or any part of a public service vehicle undertaking carried on by any other person; or

(b)dispose of the whole or any part of the authority’s public service vehicle undertaking to any other person, whether by purchase or sale, by lease, or by exchange or, in Scotland, excambion.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24

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