New South Wales Consolidated Acts

PASSENGER TRANSPORT ACT 1990 - SECT 28J

28J Determination of maximum fare pricing policy for regular bus services

(1) This section applies to any service contract for a regular bus service that authorises or otherwise permits the holder (or a person providing the service for the holder under a subcontract or other arrangement) to charge passengers of the service a fare for the use of the service.

(2) The Independent Pricing and Regulatory Tribunal (the "Tribunal") is to conduct investigations and make reports to the Minister on the following matters:

(a) the determination of appropriate maximum fares for regular bus services supplied under service contracts to which this section applies,

(b) a periodic review of fare pricing policies in respect of such services.

(3) In respect of an investigation or report under this section, the Minister may require the Tribunal to consider specified matters when making its investigations.

(4) Division 7 of Part 3 of the Independent Pricing and Regulatory Tribunal Act 1992 is taken to apply to an investigation under this section in the same way as it applies to an investigation under Part 3 of that Act.

(5) In making a determination under this section, the Tribunal is to consider the following matters:

(a) the cost of providing the services concerned,

(b) the protection of consumers from abuses of monopoly power in terms of prices, pricing policies and standards of service,

(c) the need for greater efficiency in the supply of services so as to reduce costs for the benefit of consumers and taxpayers,

(d) the need to maintain ecologically sustainable development (within the meaning of section 6 of the Protection of the Environment Administration Act 1991 ) by appropriate pricing policies that take account of all of the feasible options to protect the environment,

(e) the social impact of the determination,

(f) standards of quality, reliability and safety of the services concerned (whether those standards are specified by legislation, agreement or otherwise) and any suggested or actual changes to those standards,

(g) contractual arrangements prevailing in the industry,

(h) such other matters as the Tribunal considers relevant.

(6) A service contract to which this section applies is taken to include a term to the effect that:

(a) the holder of the contract must not charge a passenger of the service a fare that exceeds the maximum fare determined under this section from time to time for the provision of such a service to a passenger of that kind, and

(b) if the regular bus service is to be provided for the holder by another person-the holder must ensure (whether by contract or other means) that the person providing the service for the holder is not permitted to charge a passenger of the service a fare that exceeds the maximum fare determined under this section from time to time for the provision of such a service to a passenger of that kind.

(7) Any contravention of the term implied in a service contract by subsection (6) may be remedied at law or in equity as though the term were an essential term to which the parties had by contract agreed.

(8) A service contract to which this section applies may make provision for maximum fares for the provision of the regular bus service concerned to passengers pending the first determination of maximum fares under this section.

(9) Any provision of the kind referred to in subsection (8) ceases to have effect as part of the service contract on and from the first determination of maximum fares under this section that applies to the provision of the kind of regular bus services to which the contract relates.