This topic is concerned with authorities’ use of powers to secure public transport services by entering into service subsidy agreements. They may only do so where there is, in their opinion, a public transport requirement not being satisfied by the free market and which will not be met unless they take the action of offering a subsidy for the service. The power to enter into a subsidy agreement then becomes subject to a tendering process.
The key duties of the authority are to:
use the available powers and funding effectively to meet public transport needs where commercial services are not sustainable
co-operate with other tendering authorities
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