Paragraph 14

For section 34 there shall be substituted the following section—

“ Assistance for rural bus or ferry service.

34

(1)

A regional, islands or district council or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

(2)

A regional or islands council or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

(3)

The Secretary of State may, with the approval of the Treasury, make grants in such cases and subject to such conditions as he thinks fit to any of the councils aforesaid in respect of expenditure incurred by that council in making grants under subsection (1) or (2) above, and any grant under this subsection in respect of expenditure in connection with a bus service shall be of an amount equal to half the expenditure in respect of which the grant is made.

(4)

The Secretary of State may, with the approval of the Treasury make grants in such cases and subject to such conditions as he thinks fit to regional or islands councils in respect of expenditure incurred by such a council in providing a ferry service which in the opinion of the council is or will be for the benefit of persons residing in rural areas.”.