48.— (1) (a) The Authority shall secure the provision of public passenger transport services.

(b) Where the Authority proposes to secure the provision of public passenger transport services under paragraph (a), it shall, subject to section 56, do so in accordance with a public transport services contract.

(2) Where the Authority secures the provision of—

(a) rail passenger services F30[(other than metro or light rail passenger services)] it shall do so in accordance with section 52,

(b) F31[public bus services] F30[and ancillary public passenger transport services] it shall do so in accordance with section 52 or following a competitive tendering procedure, and

(c) metro and light rail passenger services it shall do so following a competitive tendering procedure.

(3) A public transport services contract shall, among other things, provide for the following:

(a) any payments to be made between the Authority and a public transport operator,

(b) allocation of passenger revenue,

(c) places to be served by a public passenger transport service,

(d) the routes to be operated or the areas to be served,

(e) the integration of services provided under the contract and their integration with other public passenger transport services,

(f) service standards and frequency,

(g) fares to be charged and provision for the variation, including increase or decrease, of fares,

(h) the fare system to be used,

(i) performance obligations including obligations relating to service levels,

(j) the branding on vehicles used for the provision of services,

(k) requirements regarding ticketing and the provision of information to passengers,

(l) accessibility standards,

(m) subject to subsection (7) or (8) as appropriate, where it is proposed to provide for subcontracting, the terms and conditions under which such subcontracting of services may take place,

(n) a requirement where appropriate that the operator holds an operator’s licence (within the meaning of section 2(9) of the Road Traffic and Transport Act 2006),

(o) requirements relating to compliance with applicable law in relation to pay and terms and conditions of employment,

(p) emission standards for pollutants and noise, and

(q) such other service, customer, vehicle, reporting, financial or contractual requirements (whether or not of the same kind), which the Authority considers appropriate.

(4) A public transport services contract may include a provision for the carrying out of a review of all or any of the provisions of that contract which relate to the requirements set out in subsection (3) or any other matter provided for in the contract.

(5) A public transport operator may not transfer, assign, delegate or otherwise deal with a right, power or duty under a public transport services contract without the approval of the Authority.

(6) (a) Subject to paragraphs (b) and (c) and section 52, the Authority shall determine the duration of public transport services contracts to which this Chapter applies subject to a maximum of 10 years in respect of F31[public bus services] and 15 years in respect of rail or other track-based modes.

(b) The duration of public transport services contracts relating to several modes of transport shall not exceed 15 years if transport by rail or other track-based modes represents more that 50 per cent of the value of the services in question and shall not exceed 10 years where the said value is less than 50 per cent.

(c) If necessary, having regard to the conditions of depreciation of assets, the duration of the public transport services contracts may be extended by a maximum of 50 per cent if the public transport operator provides assets which are both significant in relation to the overall assets needed to carry out the passenger transport services covered by the public transport services contract and linked predominantly to the passenger transport services covered by the contract.

(7) Where a public transport services contract relates to the provision of public passenger transport services to which paragraphs (a) and (b) of subsection (2) apply and it is proposed that part of the contract may be the subject of subcontracting, Article 4.7 of Regulation No. 1370/2007 shall apply.

(8) Where a public transport services contract relates to the provision of metro or light rail passenger services, a public transport operator may, with the approval of the Authority, subcontract the provision of part of the public passenger transport services under that contract and such services provided under subcontract shall be subject to the obligations, if any, specified in that contract.

(9) A public transport services contract may provide for financial or other incentive clauses where a public transport operator exceeds specified performance standards.

(10) Where a public transport operator does not comply with the requirements set down in this Chapter or in a public transport services contract made under this section, the Authority may impose financial or other consequences, including the termination of the right to provide the public passenger transport service or any part thereof to which the contract relates and such consequences shall be referred to in the contract.

(11) The Authority may assign its functions in relation to securing the provision of metro or light rail passenger services to the RPA subject to such terms and conditions, consistent with this Chapter, as the Authority sees fit.

F32[(12) Where the Authority proposes to enter into a public transport services contract, other than a direct award contract to which section 52(3) refers, it shall—

(a) advise any local authority in whose functional area the transport service will operate of the proposal to enter into such a contract, and

(b) invite any such local authority to submit written views in relation to the proposed contract, which it will consider prior to entering into the contract.]