12.—(1) The Transport Act 1985(1) shall be amended as follows.
(2) In section 65 (co-operation between certain councils and London Regional Transport)—
(a)in subsection (1) for the words “London Regional Transport”—
(i)in the first place occurring there shall be substituted “Transport for London or any of its subsidiaries (within the meaning of the Greater London Authority Act 1999)”; and
(ii)in the second place occurring there shall be substituted “Transport for London or that subsidiary”;
(b)in subsection (2) for the words “London Regional Transport” there shall be substituted “Transport for London or any of its subsidiaries (within the meaning of the Greater London Authority Act 1999)”;
(c)for subsection (3) there shall be substituted—
“(3) Transport for London shall not exercise its powers under section 156(2) or (3) of the Greater London Authority Act 1999, and no subsidiary of Transport for London shall enter into a transport subsidiary’s agreement (within the meaning of section 169 of that Act), in pursuance of any agreement or arrangement entered into under this section except—
(a)in a case where the service in question would not be provided without a subsidy; and
(b)in accordance with sections 89 to 92 of this Act.”
(d)subsections (4) and (5) shall be omitted.
(3) In section 88(8) (expenditure on public passenger transport services) for the words “London Regional Transport in relation to any exercise of their power under section 3(2) of the London Regional Transport Act 1984 (contracting-out powers)” there shall be substituted “Transport for London in relation to any exercise of its power under section 156(2) or (3) (general powers) of the Greater London Authority Act 1999”.