Transport Act 1985

2 (1) In paragraphs (a) and (b) of section 31(2) for the words " be against the interests of the public " there shall, in each case, be substituted the words " interfere with the transition to deregulation ".

(2) For subsections (3) and (4) of section 31 there shall be substituted the following subsections—

“(3) For the purposes of subsection (1) above the grant of a road service licence shall be taken to interfere with the transition to deregulation if, but only if—

(a) it has a severely detrimental effect on traffic conditions ;

(b) it disrupts arrangements made, or proposed to be made—

(i) in England and Wales, by a non-metropolitan county council or Passenger Transport Executive ; and

(ii) in Scotland, by a regional or islands council or Passenger Transport Executive ; with a view to achieving a satisfactory transition to deregulation; or

(c) the applicant is in receipt of a subsidy from one or more local authorities otherwise than—

(i) under an agreement with respect to which the requirements of section 89 of the Transport Act 1985 are satisfied ; or

(ii) by way of reimbursement for providing travel concessions in accordance with a travel concession scheme which satisfies the requirements of section 93 of that Act;

and that subsidy gives the applicant an unfair commercial advantage in relation to the provision of any local service in the area in question ;

and in this Part of this Act references to "interference with the transition to deregulation " shall be construed accordingly.

(4) In considering whether the grant of a licence would interfere with the transition to deregulation, the commissioners—

(a) shall have regard to any objections or other representations (made to them in the prescribed manner) which they consider are relevant; and

(b) shall not consider whether the grant would be disruptive as mentioned in subsection (3)(b) above except at the instance of the council or Executive concerned.”

(3) In subsection (5), after the words " police district" there shall be inserted the words " and Passenger Transport Executive for any area ".