43.Section 20 sets out how the Act applies to cross-border services.
44.A standard local bus service (as defined in section 3) is a cross-border service for the purpose of this section if the route of the service is set out in the Plan and that route is partly in Wales and partly in England. In the case of a flexible local bus service (as defined in section 3 again), the service is a cross-border service if its geographical area of operation is set out in the Plan, and this area includes territory on both sides of the England/Wales border.
45.The effect of section 20 is that the Welsh Ministers are not required to secure the part of a cross-border service that operates in England, provided that they consider that, even if they do not secure the service, Welsh needs for the service will be met (for instance because it is being provided under arrangements made in England). When considering whether this is the case, the Welsh Ministers cannot take account of services secured by county councils in England under section 63 of the 1985 Act (which requires county councils to secure needed services that would not otherwise be provided). This exclusion is required to ensure that section 63 of the 1985 Act and section 20 can work together without circularity. Where the effect of section 20 is that the Welsh Ministers are not required to secure the English part of a cross-border service, this means that the English part of that service cannot be the subject of a local bus service contract, or directly provided (in that the powers in respect of local bus service contracts and direct provision are available only where a service is secured for the purposes of the section 5(1)(c) duty). The operator could be granted a local bus service permit to operate the English part of the service; but since the English part of the service would not be within the section 23 restriction, this would not be essential, in that the English part of the service can operate without a local bus service permit. (The English part of the service will however be subject to any requirements imposed in legislation in respect of the provision of services of this type in England.)
46.Where the Welsh Ministers are required to secure the English part of a cross-border service, that cross-border service (whether in England or Wales) can be secured through a local bus service contract, or a permit, or direct provision, or by relying on a service as described in section 19, or by any combination of these methods, in the usual way.
Commentary on Sections Cross-border services