Why is that unlawful? Unfair, perhaps, but unlawful? What law was it
breaking?


The law that requires subsidiary authorities to adhere to the statutory
provisions creating the powers they are exercising. The High Court has always
had the power to review the procedures adopted by inferior tribunals and local
authorities when a citizen wishes to challenge their adherence to proper
procedures, on grounds of irrationality, illegality or breach of natural
justice.

The statute was the Transport (London) Act 1969, and basically the majority of
the House of Lords decided that L.T. had to be run on a break-even basis, and
that the G.L.C. in seeking to reimburse L.T. for the inevitable operating loss
that would result from "Fares Fair" (which involved a 25% fares reduction
across the board) was abusing its power. Under Section 7(6), L.T. was required
to balance its books and by Section 11, the G.L.C. was empowered to give
general directions to L.T.but the Courts held that it was abuse of this power
to institute "Fares Fair" which was a socio-political act (to encourage people
to use public transport) because that was not the purpose of the 1969 Act or
the proper function of the G.L.C.

Marc.