Commentary

13 Subsidised services

CARRIERS vol 6(1)B
CARRIERS vol 6(1)B | Commentary

13 Subsidised services

CARRIERS vol 6(1)B | Commentary

13 Subsidised services

Local authorities and passenger transport executives may offer to provide a financial subsidy for services which are not commercially viable, but which they consider are socially necessary. The Transport Act 1985 sets out detailed provisions regulating the procedure, which is normally by way of open invitation to tender1.

In certain specified circumstances, and where only small subsidies are involved, the procedure is modified and no open tendering is involved2.

The duration of a bus service subsidy agreement may not exceed eight years3. Only the holder of a public service vehicle (‘PSV’)

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