Local Transport Bill [HL]

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Session 2007 - 08
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Local Transport Bill [HL]

Local Transport Bill [HL]
Schedule 1 — References to local transport plans
96

Schedules
Schedule 1
Section 7

References to local transport plans
1
The TA 2000 is amended as follows.
Quality contracts schemes
5
2     (1)
Section 124 is amended as follows.
      (2)
In subsection (1A)(c) for “local transport plan” substitute “local transport
policies”.
      (3)
Omit subsection (10).
Joint and through ticketing schemes
10
3     (1)
Section 135 is amended as follows.
      (2)
In subsection (1) for paragraph (b) substitute—
“(b)
would contribute to the implementation of their local
transport policies.”.
Information about bus services
15
4     (1)
Section 139 is amended as follows.
      (2)
In subsection (1) for “local transport plan” substitute “local transport
policies”.
Local licensing schemes
5     (1)
Section 179 is amended as follows.
20
      (2)
In subsection (2) for “policies in the licensing authority’s local transport
plan” substitute “local transport policies of the licensing authority”.
Joint local licensing schemes
6     (1)
Section 180 is amended as follows.
      (2)
In subsection (2) for “policies in the licensing authorities’ local transport
25
plans” substitute “local transport policies of the licensing authorities”.
Joint local-London licensing schemes
7     (1)
Section 181 is amended as follows.

Local Transport Bill [HL]
Schedule 2 — Competition test: amendments of Schedule 10 to the Transport Act 2000
97

      (2)
In subsection (2)(a)—
(a)
for “policies in the local transport plan” substitute “local transport
policies”;
(b)
omit “the local transport plans of”.
Financial provisions relating to road user charging and workplace parking levy
5
8     (1)
Schedule 12 is amended as follows.
      (2)
In paragraph 8 (application of proceeds)—
(a)
in sub-paragraph (2)(a) for “policies in the authority’s local transport
plan” substitute “local transport policies of the authority”;
(b)
in sub-paragraph (4)(a) for “any policies in its local transport plan”
10
substitute “any of its local transport policies”.
Schedule 2
Section 41

Competition test: amendments of Schedule 10 to the Transport Act 2000
1
Schedule 10 to the TA 2000 (competition test for exercise of bus functions) is
amended as follows.
15
Test for the exercise of functions by local authorities
2
For the italic heading preceding paragraph 1 substitute—
“Part 1
Test for exercise of bus functions by local authorities
Functions to which this Part of this Schedule applies”.
20
3     (1)
Paragraph 1 (functions to which Schedule 10 applies) is amended as follows.
      (2)
In sub-paragraph (1) after “The functions to which” insert “this Part of”.
      (3)
In sub-paragraph (2)—
(a)
after “For the purposes of” insert “this Part of”;
(b)
after “a function to which” insert “this Part of”.
25
4     (1)
Paragraph 2 (competition test) is amended as follows.
      (2)
In sub-paragraph (1)—
(a)
after “For the purposes of” insert “this Part of”;
(b)
after “a function to which” insert “this Part of”.
      (3)
In sub-paragraph (3)(b) omit “substantial”.
30
5
Omit paragraphs 3 and 4.
6
In paragraph 5 (investigation by OFT)—
(a)
for “the OFT” substitute “the Office of Fair Trading (in this Schedule
referred to as “the OFT”);
(b)
after “a function to which” insert “this Part of”.
35

Local Transport Bill [HL]
Schedule 2 — Competition test: amendments of Schedule 10 to the Transport Act 2000
98

7
In paragraph 10 (decisions) omit paragraph (a).
8
Omit paragraph 11.
9
In paragraph 12(1) (enforcement of decision) after “a function to which”
insert “this Part of”.
10
In paragraph 13(1) (restriction on disclosure of information) after “its
5
functions under” insert “this Part of”.
11
In paragraph 14 (offence of disclosing information) after “its functions
under” (in both places) insert “this Part of”.
12
After paragraph 14 insert—
“Advice and information
10
14A   (1)
As soon as is reasonably practicable after the passing of the Local
Transport Act 2008, the OFT must prepare and publish advice and
information about—
(a)
the application of the competition test,
(b)
the enforcement of decisions regarding that test.
15
      (2)
The OFT may at any time publish revised, or new, advice or
information.
      (3)
Advice and information published under this paragraph must be
prepared with a view to—
(a)
explaining provisions of this Part of this Schedule to
20
persons who are likely to be affected by them, and
(b)
indicating how the OFT expects such provisions to
operate.
      (4)
Advice (or information) published by virtue of sub-paragraph
(3)(b) may include advice (or information) about the factors which
25
the OFT may take into account in considering whether, and if so
how, to exercise a power conferred on it by this Part of this
Schedule.
      (5)
Any advice or information published by the OFT under this
paragraph is to be published in such form and in such manner as
30
it considers appropriate.
      (6)
If the OFT is preparing any advice or information under this
paragraph it must consult such persons as it considers
appropriate.”.
13
In paragraph 15 (defamation)—
35
(a)
after “or notice given” insert “, and to any advice or information
given,”;
(b)
after “its functions under” insert “this Part of”.
14    (1)
Paragraph 16 (fees) is amended as follows.
      (2)
In sub-paragraph (1) after “its functions under” insert “this Part of”.
40
      (3)
Omit sub-paragraph (3).

Local Transport Bill [HL]
Schedule 2 — Competition test: amendments of Schedule 10 to the Transport Act 2000
99

New test for certain agreements, decisions and practices
15
After paragraph 16 insert—
“Part 2
Test for certain agreements, decisions and practices
Interpretation
5
17    (1)
This paragraph applies for the purposes of the interpretation of
this Part of this Schedule.
      (2)
A voluntary multilateral agreement (a “VMA”) is a voluntary
partnership agreement (within the meaning given by section 153)
to which two or more operators of local services are parties.
10
      (3)
A voluntary bilateral agreement (a “VBA”) is a voluntary
partnership agreement (within the meaning given by that section)
to which only one operator of local services is a party.
      (4)
In this Part of this Schedule—
(a)
a “qualifying agreement” is an agreement between bus
15
undertakings only;
(b)
a “qualifying decision” is so much of any decision by an
association of undertakings as relates to the operation of
local services;
(c)
a “qualifying practice” is a concerted practice by bus
20
undertakings only.
      (5)
For the purposes of sub-paragraph (4)—
(a)
a bus undertaking is an undertaking which is the operator
of a local service;
(b)
the involvement of a local authority which is not a bus
25
undertaking is to be disregarded;
(c)
a quality partnership scheme or voluntary partnership
agreement is not to be regarded as a qualifying agreement,
qualifying decision or qualifying practice.
      (6)
In sub-paragraph (5)(b) “local authority” means—
30
(a)
a local transport authority;
(b)
a district council in England.
      (7)
A provision of this Part of this Schedule which is expressed to
apply to, or in relation to, a qualifying agreement is to be read as
applying equally to, or in relation to, a qualifying decision or a
35
qualifying practice (but with any necessary modifications).
      (8)
A reference to the area of an authority—
(a)
in relation to a VMA or VBA, is a reference to the area of a
local transport authority who are a party to the agreement;
(b)
in relation to a qualifying agreement, is a reference to the
40
area of a local transport authority in whose area the
agreement is, or is to be, implemented.
      (9)
The “bus improvement objectives” are—

Local Transport Bill [HL]
Schedule 2 — Competition test: amendments of Schedule 10 to the Transport Act 2000
100

(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 benefit to
users of local services, and
5
(c)
reducing or limiting traffic congestion, noise or air
pollution.
Agreements, decisions and practices to which this Part of this Schedule applies
18    (1)
This Part of this Schedule applies to—
(a)
VMAs or VBAs falling within sub-paragraph (2), and
10
(b)
qualifying agreements falling within sub-paragraph (3).

This paragraph is subject to paragraph 19.
      (2)
A VMA or VBA falls within this sub-paragraph if it has as its object
or effect the prevention, restriction or distortion of competition in
the area of the authority, or the combined area of the authorities.
15
      (3)
A qualifying agreement falls within this sub-paragraph if—
(a)
it has as its object or effect the prevention, restriction or
distortion of competition in the area of the authority, or the
combined area of the authorities, but
(b)
the authority, or any of the authorities, has certified that
20
they have considered all the terms and effects (or likely
effects) of the agreement and that in their opinion the
requirements mentioned in sub-paragraph (4) are
satisfied.
      (4)
The requirements are that the agreement—
25
(a)
is in the interests of persons using local services within the
area of the authority, or the combined area of the
authorities, and
(b)
does not impose on the undertakings concerned
restrictions that are not indispensable to the attainment of
30
the bus improvement objectives.
      (5)
For the purposes of sub-paragraph (2)—
(a)
the object or effect of a VMA may be considered either on
its own or together with one or more other VMAs, VBAs or
qualifying agreements;
35
(b)
the object or effect of a VBA is to be considered together
with one or more VMAs, other VBAs or qualifying
agreements.
      (6)
For the purposes of sub-paragraph (3) the object or effect of a
qualifying agreement may be considered either on its own or
40
together with one or more VMAs, VBAs or other qualifying
agreements.
19    (1)
This Part of this Schedule does not apply to a VMA, VBA or
qualifying agreement if it (or any of its provisions) constitutes a
price-fixing agreement within the meaning given by section 39(9)
45
of the Competition Act 1998.

Local Transport Bill [HL]
Schedule 2 — Competition test: amendments of Schedule 10 to the Transport Act 2000
101

      (2)
Where the standard of services specified in a VMA or VBA
includes any requirement as to maximum fares (see section
153(3)), any provision of that agreement relating to the setting,
review or revision of the maximum fare is not to be regarded as
constituting a price-fixing agreement for the purposes of sub-
5
paragraph (1).
The prohibition
20    (1)
Any VMA, VBA or qualifying agreement to which this Part of this
Schedule applies is prohibited unless it is exempt in accordance
with the provisions of this Part of this Schedule.
10
      (2)
The prohibition in sub-paragraph (1) applies in place of the
Chapter 1 prohibition.
      (3)
The Chapter 1 prohibition is the prohibition imposed by section
2(1) of the Competition Act 1998.
Agreements and decisions void
15
21
Any agreement or decision which is prohibited by paragraph 20 is
void.
Exempt agreements
22    (1)
A VMA, VBA or qualifying agreement to which this Part of this
Schedule applies is exempt if—
20
(a)
it contributes to the attainment of one or more of the bus
improvement objectives,
(b)
it does not impose on the undertakings concerned
restrictions which are not indispensable to the attainment
of those objectives, and
25
(c)
it does not afford the undertakings concerned the
possibility of eliminating competition in respect of a
substantial part of the services in question.
      (2)
In any proceedings in which it is alleged that the prohibition in
paragraph 20 is being or has been infringed by a VMA, VBA or
30
qualifying agreement any undertaking or association of
undertakings claiming the benefit of sub-paragraph (1) shall bear
the burden of proving that the conditions of that sub-paragraph
are satisfied.
Application of provisions of Competition Act 1998
35
23    (1)
The provisions of Part 1 of the Competition Act 1998 (“the 1998
Act”) specified in sub-paragraph (2) apply in relation to the
prohibition in paragraph 20 (and a VMA, VBA or qualifying
agreement to which this Part of this Schedule applies) as those
provisions apply in relation to the Chapter 1 prohibition (and an
40
agreement to which the provisions of that Chapter apply).
      (2)
The provisions are—
(a)
in Chapter 1, sections 3, 6, 8, 10 and 11 (excluded
agreements and exemptions);

Local Transport Bill [HL]
Schedule 3 — Detention of certain PSVs used without PSV operators’ licences
102

(b)
Chapter 3 (investigations and enforcement), except
sections 36 to 39 (penalties);
(c)
in Chapter 4, sections 46 to 49 (appeals);
(d)
Chapter 5 (miscellaneous), except section 54 (regulators).
      (3)
The application, by virtue of sub-paragraph (2)(d), of Chapter 5
5
includes section 52(1) of the 1998 Act; but this is subject to the
following modifications—
(a)
the reference to the passing of the 1998 Act is to be read as
a reference to the passing of the Local Transport Act 2008;
(b)
the reference to the Director is to be read as a reference to
10
the OFT.
      (4)
The application, in accordance with sub-paragraph (1), of the
provisions mentioned in sub-paragraph (2) is to be subject to such
further modifications as the Secretary of State may by order
provide.”.
15
Schedule heading
16
In consequence of the amendments made by this Schedule, the heading to
Schedule 10 becomes—
“Competition test: functions and agreements relating to buses”.
Schedule 3
20
Section 42

Detention of certain PSVs used without PSV operators’ licences

The Schedule that is to be inserted as Schedule 2A to the PPVA 1981 is as
follows—
“SCHEDULE 2A
Detention of certain PSVs used without PSV operators’ licences
25
Interpretation
1     (1)
In this Schedule—
“authorised person” means—
(a)
an examiner appointed by the Secretary of State under
section 66A of the Road Traffic Act 1988, or
30
(b)
a person acting under the direction of such an examiner;
“contents”, in relation to a vehicle, means any goods carried by that
vehicle which are not personal effects;
“immobilisation device” means any device or appliance which is an
immobilisation device for the purposes of section 104 of the Road
35
Traffic Regulation Act 1984;
“nominated custodian” is to be construed in accordance with
paragraph 6(1) below;
“operator”, in relation to a public service vehicle, means—
(a)
the driver, if he owns the vehicle, or
40