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s 40

Nature of contracts

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Part 5Regular passenger services

40 Nature of contracts

(1)

A service contract must make provision with respect to—

(a)

the period for which it operates; and

(b)

the manner in which it may be terminated; and

(c)

standards relating to the provision of services under the contract;

and

(d)

a scale of service levels (determined according to such things as the periods of time during which services are to be operated, the extent of operation of services, and the frequency of operation of services during specified periods); and

(e)

the fares to be charged; and

(f)

the manner in which the holder of the service contract will be remunerated or gain revenue from the provision of services under the contract (including arrangements as to any subsidy); and

(g)

other matters required by this Act or the regulations to be specified in a service contract.

(2)

A service contract may make provision for or with respect to—

(a)

reviewing or altering the fares or fare system in circumstances specified in the contract; and

(b)

monetary or other penalties for breaches of the contract and the recovery of monetary penalties; and

(c)

bonds for the performance of the obligations, or specified obligations, under the contract; and

(d)

the variation of the contract; and

(e)

the renewal of the contract; and

(f)

such other matters as the parties think fit to include in the circumstances of the case.

(3)

The contract may provide for the periodic review, in a manner and at such periods as the contract may specify, of any matter for the time being determined by or under it.

(4)

The Minister must, for the purposes of subsection (1)(c), establish various standards that will apply to all service contracts of the same kind with a view to ensuring that standards relating to the provision of services are, so far as is reasonably practicable and appropriate, maintained at the highest possible levels.

(5)

The Minister must, in relation to the fares payable by passengers on regular passenger services within Metropolitan Adelaide, ensure—

(a)

that the standard adult fare allows for unlimited travel on regular passenger services provided within a specified zone or zones (subject to those services being available and stopping within that zone or those zones), for a specified period, or until the expiration of a specified period;

and

(b)

that concession fares do not exceed 60 per cent of the standard adult fare for the same service (if provided at the same time), subject to the qualification that this paragraph does not apply to special fares that are payable during a particular part of the day, that are set for special events or purposes, or that are excluded from the ambit of this paragraph by the regulations.

(6)

An alteration to the fares or fare system under a service contract may only be undertaken as part of an across the board alteration of the fares or fare systems under all service contracts of the same kind that relate to

Metropolitan Adelaide.

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