2(1)For the purposes of this Schedule the exercise or proposed exercise of a function to which this Schedule applies meets the competition test unless it—
(a)has or is likely to have a significantly adverse effect on competition, and
(b)is not justified by sub-paragraph (2).
(2)The exercise or proposed exercise of a function is justified if—
(a)it is with a view to achieving one or more of the purposes specified in sub-paragraph (3), and
(b)its effect on competition is or is likely to be proportionate to the achievement of that purpose or any of those purposes.
(3)The purposes referred to in sub-paragraph (2) are—
(a)securing improvements in the quality of vehicles or facilities used for or in connection with the provision of local services,
(b)securing other improvements in local services of substantial benefit to users of local services, and
(c)reducing or limiting traffic congestion, noise or air pollution.