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Rail replacement PVOA/NBC agree
Page 43
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• Members of the Passenger Vehicle Operators Association have been advised that an understanding Hs been reached with the National Bus Company regarding the procedure when the NBC assumes financial responsibility for subvented rail replacement services (CM May 9 1969). However, the PVOA has told the Ministry of Transport that, in view of assurances given by the late Mr Stephen Swingler, when Minister of State for Transport, the Association does not accept any transfer of contracts from British Railways, the body at present responsible, to the NBC until May 1971.
The arrangements agreed between the Association and NBC are as follows: When transfers are effected, the following principles will apply (subject always to the control of road service licences by the Traffic Commissioners):
An independent operator providing a subventive service will in all circumstances retain the right to operate this service. The NBC will pay a grant—through its local subsidiary—in respect of any justified service, unless the NBC could provide the service at a lower cost than the grant paid. In the latter circumstance, the choice of continuing to operate without a grant
rests with the independent operator.
Contracts taken over by the NBC will be honoured until the normal expiry date. Variation or earlier termination clauses included in these contracts will only be evoked in extreme cases. When contracts fall due to be renewed they will be renegotiated on the basis of current passenger requirements, which may be quite different from the levels agreed at the time of the rail closure. In this, however, the social and political aspects will be taken into account.
Negotiations in respect of all contracts shall be left in the hands of the independent operator and the local NBC subsidiary, though guidance on the criteria to be adopted shall be issued by the NBC in respect of its subsidiaries and by the PVOA in respect of independents. If an independent operator feels aggrieved by the conditions required by the subsidiary, he shall be able to raise the matter with the PVOA who will investigate the complaint with NBC headquarters.
If a rail closure was made prior to the commencement of the Transport Act 1962 this will not be affected by the provisions of Section 54 of the 1968 Act, but will remain subject to any contractual agreement between British Railways and the operator.
In respect of new rail closures, independent operators in the locality will be advised of the closure at the earliest possible moment. They will be given an opportunity to provide the service, if this course is more economical to the NBC subsidiary, OF if they are the established operator.
Within two years of a rail closure, the replacement service can only be discontinued with the consent of the Minister. It is appreciated that thereafter, or once the obligation to provide a service ceases, the possibility arises that subventions paid by the NBC or British Railways could also cease; against this there might then be the possibility of a rural bus grant from the county or district council.