Transport (London) Act 1969

12 Minister's power to prevent improper conduct of subsidiary activities

(1) Where the activities of the Executive or any subsidiary of theirs include the carrying on—

(a) of the business of providing services for the carriage of passengers by road which both do not, and if section 23(2)(a) of this Act had not been passed would not, require authorisation by a road service licence; or

(b) of any business of a description which the Executive are authorised to carry on by section 6(1)(i) of this Act,

subsection (2) of this section shall apply to that business.

(2) In the case of any business to which this subsection applies the annual report of the Executive under section 15 of this Act for any accounting period shall include a statement of—

(a) the amount, as determined by the Executive, of the turnover of the Executive or subsidiary for that period in respect of that business;

(b) the extent or approximate extent (expressed in either case in monetary terms) to which, as so determined, the carrying on of that business contributed to, or restricted, the profit or loss of the Executive or subsidiary for that period before taxation;

(c) the method by which any determination for the purposes of paragraph (a) or (b) of this subsection was arrived at; and

(d) such further information, if any, relating to the carrying on by the Executive or subsidiary of that business as the Minister may from time to time direct.

(3) If, where the Executive or any subsidiary of theirs carry on any business to which subsection (2) of this section applies, it appears at any time to the Minister that, having regard to all the circumstances appearing to the Minister to be relevant, the charges made by the Executive or subsidiary in the course of that business are unduly low having regard to the cost of carrying on that business, the Minister shall, after consultation with the Council and with the Executive, either—

(a) direct the Executive to make, or, as the case may be, to ensure that the subsidiary makes, such modifications in their or its method of conducting that business as may be specified in the direction ; or

(b) direct the Executive to discontinue, or, as the case may be, to ensure that the subsidiary discontinues, that business.

(4) The Minister may by order provide that subsection (2) of this section shall apply with or without modifications of that subsection and subsection (3) of this section—

(a) to any specified business carried on by the Executive or a subsidiary of theirs, being business of a description which the Executive are authorised by section 6(1)(d), (g), (h) or (j) of this Act to carry on; or

(b) to any other specified business of the Executive or any subsidiary of theirs, being business which appears to the Minister to be of a character only subsidiary or incidental to the discharge of the Executive's duty under section 5(1) of this Act and to be carried on on a substantial scale.

(5) The Executive shall secure that no subsidiary of theirs carries on any business with respect to which the Minister has given the Executive a direction under subsection (3)(b) of this section.