80.Section 7 of the 2006 Act confers power on the Welsh Ministers to secure the provision of public passenger transport services where there is a need for them that would not otherwise be met. Section 40 amends section 7 with the effect that this power is no longer available in respect of services that are local bus services for the purposes of the Act. This reflects the fact that local bus services will be secured under the new system established by the Act. Section 40(4) inserts a new subsection (4B) into section 7. The effect of this is to ensure that a local bus service contract is excluded from the restriction in section 7(4) of the 2006 Act. That restriction applies to “agreements providing for service subsidies”: the definition of these agreements given in section 7(6) would otherwise catch a local bus service contract.
Commentary on Sections Government of Wales Act 2006