The Transport (Scotland) Act 2001 (Conditions attached to PSV Operator’s Licence and Competition Test for Exercise of Bus Functions) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order makes provision consequential on the Transport (Scotland) Act 2001 (“the 2001 Act”).

Article 3 amends section 26(1) of the Transport Act 1985 to provide additional grounds on which the traffic commissioner may attach conditions to a public service vehicle operator’s licence. These additional grounds are: (1) where an operator has operated a local service in contravention of a written undertaking given to the traffic commissioner in terms of a quality partnership scheme (section 8(4) of the 2001 Act); (2) where an operator has provided a local service during a period when a quality contract scheme is in place and that service is not part of that scheme (section 22(1)(b) of the 2001 Act); (3) where an operator has failed to make and implement the arrangements required by a ticketing scheme (section 32(1) of the 2001 Act) and (4) where an operator has failed to provide an authority or authorities with information required by them (section 34(3) of the 2001 Act).

Articles 4 to 18 provide that the Director General of Fair Trading (“the Director”) will exercise the competition test provided for in section 37 of the 2001 Act. Section 37 applies to the functions of making and varying quality partnership schemes, making and varying ticketing schemes and inviting and accepting tenders for subsidised services. Articles 4 and 5 provide that an authority or operator may apply to the Director either before or after the exercise of the function for a decision on whether it will meet or has met the competition test. Articles 6 to 11 provide for the Director to investigate on the Director’s own initiative. For the purpose of an investigation the Director is given powers to obtain information and documents subject to provisions as to confidentiality. Any decision made on such an application or following such investigation must be published with reasons. Article 12 provides that if the Director has already decided that a function meets the competition test that no further action is to be taken unless there are reasonable grounds for believing that there has been a material change of circumstances or that the information on which the decision was based was incomplete, false or misleading. Article 13 provides that the Director may enforce the decisions by giving directions to the authorities or authorities. Article 14 provides that, subject to certain exceptions, information obtained by the Director shall not be disclosed during the lifetime of the individual (where it relates to the affairs of any individual) or while the particular business continues to be carried on. This article also provides that a contravention of this provision is an offence, punishable with a fine up to level 5 on the standard scale (currently £5,000). Article 15 makes it an offence, punishable with a fine up to level 5 on the standard scale to give the Director false or misleading information. Article 16 provides that, for the purposes of the law relating to defamation, the Director has absolute privilege in the exercise of the Director’s functions under this order. Article 17 provides for the Director to charge fees in connection with the Director’s functions under this Order.