Infrastructure Bill (HL Bill 2)

Part 1 Strategic highways companies

Appointment as highway authorities

1 Appointment of strategic highways companies

(1) 5The Secretary of State may by order in accordance with this Part appoint one
or more companies as a highway authority.

(2) A company may only be appointed under this section if it is—

(a) limited by shares, and

(b) wholly owned by the Secretary of State.

(3) 10The appointment of a company terminates (in addition to termination by
revocation of the order making the appointment) if the company ceases to be
wholly owned by the Secretary of State.

(4) A company appointed under this section is called a “strategic highways
company”.

(5) In this section, “company” means a company registered under the Companies
Act 2006.

(6) 5Schedule 1 (which contains consequential and supplemental amendments) has
effect.

2 Areas and highways in an appointment

(1) The appointment of a strategic highways company must specify—

(a) an area, consisting of the whole or any part of England, in respect of
10which the company is appointed;

(b) highways in that area for which the company is to be the highway
authority.

(2) Highways may be specified under subsection (1)(b) by name or description.

(3) Highways specified under subsection (1)(b) must be highways for which the
15Secretary of State or another strategic highways company is the highway
authority immediately before the appointment has effect.

(4) In the case of a strategic highways company appointed for an area adjacent to
Wales, the highways specified under subsection (1)(b) may (subject to
subsection (3)) include highways in Wales.

(5) 20Where—

(a) the appointment of a strategic highways company is varied, and

(b) by virtue of that variation the company ceases to be the highway
authority for one or more highways,

the Secretary of State becomes the highway authority for those highways (to
25the extent that he or she would not otherwise be so).

(6) Where the appointment of a strategic highways company terminates, the
Secretary of State becomes the highway authority for any highway for which
the strategic highways company is highway authority (whether by virtue of
the appointment or otherwise) immediately before the termination.

(7) 30Subsections (5) and (6) are subject to the appointment of another strategic
highways company.

Functions

3 Road Investment Strategy

(1) The Secretary of State may at any time—

(a) 35set a Road Investment Strategy for a strategic highways company, or

(b) vary a Strategy which has already been set.

(2) A Road Investment Strategy is to relate to such period as the Secretary of State
considers appropriate.

(3) A Road Investment Strategy must specify—

(a) 40the objectives to be achieved by the company during the period to
which it relates, and

(b) the financial resources to be provided by the Secretary of State for the
purpose of achieving those objectives.

(4) The objectives to be achieved may include—

(a) activities to be performed;

(b) 5results to be achieved;

(c) standards to be met.

(5) The Secretary of State and the company must comply with the Road
Investment Strategy.

(6) If a strategic highways company does not have a Road Investment Strategy
10currently in place, the Secretary of State must—

(a) lay before Parliament a report explaining why a Strategy has not been
set, and

(b) set a Road Investment Strategy as soon as may be reasonably
practicable.

(7) 15Schedule 2 (which contains provision about the procedure for setting or
varying a Road Investment Strategy) has effect.

4 Directions and guidance

(1) The Secretary of State may from time to time give a strategic highways
company directions or guidance as to the manner in which it is to exercise its
20functions.

(2) Directions under subsection (1) may provide, in particular, that a function is
only to be exercised—

(a) after consultation with the Secretary of State, or

(b) with the consent of the Secretary of State.

(3) 25In exercising its functions, a strategic highways company must—

(a) comply with a direction, and

(b) have regard to guidance,

given to it under subsection (1).

(4) Directions and guidance under subsection (1) must be published by the
30Secretary of State in such manner as he or she considers appropriate.

5 Fines

(1) If the Secretary of State is satisfied that a strategic highways company has
contravened or is contravening—

(a) section 3(5) (compliance with the Road Investment Strategy), or

(b) 35section 4(3) (compliance with directions and regard to guidance),

the Secretary of State may require the company to pay a fine.

(2) The Secretary of State must publish, in such manner as he or she considers
appropriate, a statement as to—

(a) in what circumstances he or she may require the payment of a fine, and

(b) 40what the amount of the fine may be or how it may be determined.

6 Delegation of functions

(1) A strategic highways company may authorise another person to exercise a
function it has under any enactment, if the function is prescribed by
regulations made by the Secretary of State.

(2) 5An authorisation may authorise the exercise of a function—

(a) wholly or to any other extent;

(b) generally or only in some cases or areas;

(c) unconditionally or subject to conditions.

(3) An authorisation—

(a) 10does not prevent the company or any other person from exercising the
function to which the authorisation relates,

(b) may be for a period not exceeding ten years, and

(c) may be revoked at any time.

(4) The strategic highways company may—

(a) 15enter into a contract with an authorised person in connection with the
exercise by that person of a function;

(b) make payments to an authorised person in that connection.

(5) Where an authorisation is revoked at a time when a contract in connection with
the exercise of a function is subsisting, the authorised person is entitled to treat
20the contract as repudiated by the company (and not as frustrated by reason of
the revocation).

(6) Regulations under this section may not prescribe a function if it is—

(a) a power of entry, or

(b) a power or duty to make subordinate legislation.

(7) 25Where a function of the Secretary of State is transferred to a strategic highways
company under this Part and is, immediately before the transfer, authorised to
be exercised by another person by an order under section 69 of the
Deregulation and Contracting Out Act 1994—

(a) the authorisation is to have effect as if it had been given by the
30transferee company under this section, and

(b) if the function is not prescribed under subsection (1), it is to be regarded
as having been so prescribed.

(8) Where a function of a strategic highways company is transferred to another
such company under this Part and is, immediately before the transfer,
35authorised to be exercised by another person under this section, the
authorisation is to have effect as if it had been given by the transferee company
under this section.

7 Exercise of delegated functions

(1) A function to which an authorisation under section 6 relates may be exercised
40by—

(a) the authorised person, or

(b) an employee of that person.

(2) Anything done by, or in relation to, the authorised person or that person’s
employee in connection with the exercise of a function is to be treated as done
45by, or in relation to, the company.

(3) Subsection (2)—

(a) does not affect the rights and liabilities of the strategic highways
company and the authorised person as between one another,

(b) does not make the strategic highways company liable under section 6
5of the Human Rights Act 1998 in respect of any act (within the meaning
of that section) of the authorised person or an employee of the
authorised person if the act is of a private nature,

(c) does not prevent any civil proceedings which could otherwise be
brought by or against the authorised person from being brought, and

(d) 10does not apply for the purposes of any criminal proceedings brought in
respect of anything done by the authorised person or that person’s
employee.

(4) Schedule 15 to the Deregulation and Contracting Out Act 1994 (restrictions on
disclosure of information) applies to an authorisation under section 6 as it
15applies to an authorisation of the Secretary of State under Part 2 of that Act
(contracting out).

(5) In this section—

(a) “employee”, in relation to a body corporate, includes a director or other
officer of the body;

(b) 20references to anything done include anything omitted to be done;

(c) references to the exercise of a function include the purported exercise
of a function.

Oversight

8 Watchdog

(1) 25The Passengers’ Council must carry out activities to protect and promote the
interests of users of highways for which a strategic highways company is the
highway authority.

(2) Those activities may include investigating, publishing reports or giving advice
to the Secretary of State on—

(a) 30how a strategic highways company’s exercise of its functions or
achievement of its objectives under a Road Investment Strategy affects
users of highways for which it is the highway authority, and

(b) any other matters—

(i) relating to highways for which a strategic highways company is
35the highway authority, and

(ii) which the Council considers to be of interest to users of such
highways.

(3) The Secretary of State may by regulations provide that those activities may not
relate to a matter—

(a) 40to the extent specified;

(b) subject to compliance with specified conditions.

(4) The Secretary of State must consult the Council before making regulations
under subsection (3).

(5) The Secretary of State must, in exercising functions under this Part, have
45regard to any advice given to him or her by the Council under this section.

(6) The Council may by agreement with a local highway authority carry out
activities to protect and promote the interests of users of highways for which
the authority is the highway authority.

(7) Those activities may include investigating, publishing reports or giving advice
5to the local highway authority on any matters—

(a) relating to highways for which the authority is the highway authority,
and

(b) which the authority and the Council consider to be of interest to users
of such highways.

(8) 10In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
bodies and offices: general), at the appropriate place insert—

• “The Passengers’ Council.”

9 Monitor

(1) The Office of Rail Regulation must carry out activities to monitor how a
15strategic highways company exercises its functions.

(2) Those activities may include investigating, publishing reports or giving advice
to the Secretary of State on—

(a) whether, how and at what cost a strategic highways company has
achieved its objectives under a Road Investment Strategy, and

(b) 20objectives for a future Road Investment Strategy.

(3) The Office may direct a strategic highways company to provide such
information as the Office considers necessary for the purpose of carrying out
activities under subsection (1).

(4) A direction under subsection (3) may specify the form and manner in which
25the information is to be provided.

(5) A direction under subsection (3) may not require—

(a) production of a document which the strategic highways company
could not be compelled to produce in civil proceedings, or

(b) provision of information which the company could not be compelled to
30give in evidence in such proceedings.

(6) The strategic highways company must comply with a direction under
subsection (3).

(7) The Secretary of State must, in exercising functions under this Part, have
regard to any advice given to him or her by the Office under this section.

35Transfers of property etc

10 Transfer schemes

(1) The Secretary of State may make one or more schemes for the transfer of
property, rights and liabilities—

(a) from the Secretary of State to one or more of the following—

(i) 40a strategic highways company, or

(ii) a proposed strategic highways company;

(b) from a strategic highways company or a former strategic highways
company to one or more of the following—

(i) the Secretary of State,

(ii) a strategic highways company, or

(iii) 5a proposed strategic highways company.

(2) In making a transfer scheme the Secretary of State must have regard to—

(a) the functions, or the proposed functions, of the transferee under any
enactment, and

(b) the terms of appointment, or proposed terms of appointment, of a
10strategic highways company, or a proposed strategic highways
company, to which the scheme relates.

(3) Schedule 3 (which contains more provision about transfer schemes) has effect.

(4) In this section and Schedule 3—

• “proposed strategic highways company” means a company which the
  15Secretary of State proposes to appoint as a strategic highways
  company;

• “former strategic highways company” means a company in respect of
  which such an appointment has terminated.

11 Tax consequences of transfers

(1) 20The Treasury may by regulations make provision for varying the way in which
a relevant tax has effect from time to time in relation to—

(a) any property, rights or liabilities which are transferred by virtue of a
transfer to which this section applies, or

(b) anything done for the purposes of, or in relation to, or in consequence
25of, a transfer to which this section applies.

(2) This section applies to—

(a) a transfer of property, rights and liabilities in accordance with a scheme
under section 10, or

(b) a transfer occurring under section 263 of the Highways Act 1980
30(vesting of highway in highways authority) by virtue of the
appointment of a strategic highway company under section 1 or the
variation or termination of such an appointment.

(3) The provision that may be made under subsection (1)(a) includes, in particular,
provision for—

(a) 35a tax provision not to apply, or to apply with modifications, in relation
to any property, rights or liabilities transferred;

(b) any property, rights or liabilities transferred to be treated in a specified
way for the purposes of a tax provision;

(c) the Secretary of State to be required or permitted, with the consent of
40the Treasury, to determine, or to specify the method for determining,
anything which needs to be determined for the purposes of any tax
provision so far as relating to any property, rights or liabilities
transferred.

(4) The provision that may be made under subsection (1)(b) includes, in particular,
45provision for—

(a) a tax provision not to apply, or to apply with modifications, in relation
to anything done for the purposes of, or in relation to, or in
consequence of, the transfer;

(b) anything done for the purposes of, or in relation to, or in consequence
5of, the transfer to have or not to have a specified consequence or to be
treated in a specified way;

(c) the Secretary of State to be required or permitted, with the consent of
the Treasury, to determine, or to specify the method for determining,
anything which needs to be determined for the purposes of any tax
10provision so far as relating to anything done for the purposes of, or in
relation to, or in consequence of, the transfer.

(5) In this section—

(a) “relevant tax” means income tax, corporation tax, capital gains tax or
stamp duty;

(b) 15“tax provision” means a provision of an enactment about a relevant tax.

(6) References in this section to the transfer of property, rights or liabilities in
accordance with a scheme under section 10 include references to—

(a) the creation of interests, rights or liabilities under the scheme, and

(b) the modification of interests, rights or liabilities under the scheme,

20(and “transferred”, in relation to property, rights or liabilities, is to be read
accordingly).

Finance

12 Financial assistance

(1) The Secretary of State may provide financial assistance—

(a) 25to a strategic highways company, for the purpose of any of its
functions, or

(b) to any other person, for the promotion or improvement of transport
services by land in England.

(2) Financial assistance may be provided in such form and on such terms as the
30Secretary of State considers appropriate.

(3) The form in which financial assistance may be provided include in particular—

(a) grants,

(b) loans, or

(c) guarantees.

(4) 35The terms on which financial assistance may be provided include in
particular—

(a) in the case of a grant or a loan, terms as to repayment;

(b) in the case of a guarantee, terms as to reimbursement.

(5) Subsection (1) does not affect any other power of the Secretary of State to
40provide financial assistance.

(6) Subsection (1)(b) does not authorise the Secretary of State to provide financial
assistance that he or she may provide under section 6 of the Railways Act 2005
(financial assistance relating to rail services).

(7) In section 17(1)(e) of the Ministry of Transport Act 1919 (power to make
advances for the promotion and improvement of transport services by land or
water), after “by land” insert “in Wales”.

Supplemental and general

13 5Transfer of additional functions

(1) The Secretary of State may by regulations provide that a transferable function
of the Secretary of State, other than an excluded function, is transferred to a
strategic highways company.

(2) A transferable function is a function under any enactment which relates to—

(a) 10highways;

(b) planning.

(3) An excluded function is a function which—

(a) is exercisable by statutory instrument;

(b) relates to giving consent (however expressed) to the proposed exercise
15of a function by any other—

(i) highway authority (within the meaning of the Highways Act
1980);

(ii) traffic authority (within the meaning of the Road Traffic
Regulation Act 1984).

(4) 20Regulations under this section may provide for the function to be exercisable—

(a) concurrently with the Secretary of State;

(b) only with the consent of the Secretary of State;

(c) subject to such other conditions as the Secretary of State considers
appropriate.

(5) 25Regulations under this section may amend, repeal, revoke or otherwise modify
any enactment (whenever passed or made).

14 Consequential and transitional provision etc

(1) The Secretary of State may by regulations make—

(a) consequential, supplementary or incidental provision, or

(b) 30transitional or transitory provision or savings,

in connection with an order under section 1 or any other provision made by or
under this Part.

(2) Regulations under this section may amend, repeal, revoke or otherwise modify
any enactment (whenever passed or made).

15 35Interpretation of Part 1

In this Part—

• “enactment” includes an enactment comprised in subordinate legislation
  within the meaning of the Interpretation Act 1978;

• “highway” has the same meaning as in the Highways Act 1980;

• 40“local highway authority” has the same meaning as in that Act.