FRANCHISE AGREEMENT DATED 16 SEPTEMBER
1996 BETWEEN THE DIRECTOR OF PASSENGER RAIL FRANCHISING AND PRISM
RAIL PLC RELATING TO THE SERVICES FOR THE CARRIAGE OF PASSENGERS
BY RAILWAY PROVIDED BY CARDIFF RAILWAY COMPANY LTD ("the
Franchise Agreement")
Copy of a letter to Prism Rail Ltd and Cardiff Railway
Co. Ltd
Pursuant to Section 55(6) of the Railways Act
1993 (the "Act") I am recording a contravention of the
terms of the Franchise Agreement by the Franchise Operator as
set out in the Schedule annexed hereto.
The Director of Passenger Rail Franchising (the
"Franchising Director") considers that the Franchise
Operator has agreed to take and is taking such steps as appear
for the time being to be appropriate for it to take for the purpose
of securing or facilitating compliance with the relevant condition(s).
Please note that a copy of this letter shall
be placed on the Franchising Director's register as required by
Section 83(2)(e) of the Act. The Franchising Director considers
that no further publication of the contravention is necessary.
Franchise Manager
Office of Passenger Rail Franchising
23 February 1998
SCHEDULE
1.1 Words and expressions defined in the letter
to which this is a Schedule shall, unless expressly stated otherwise,
bear the same meaning herein.
1.2 Words and expressions defined in the Franchise
Agreement shall, unless expressly stated otherwise, bear the same
meaning herein.
1.3 Nature of the contravention of the Franchise
Agreement.
Between August and November 1997 the Franchise
Operator contravened Clause 13.4 of the Franchise Agreement by
implementing a restructuring and/or change in the composition
of earnings of employees of the Franchise Operator in such a way
as to increase that part of earnings which qualifies as pensionable
earnings, without the prior consent of the Franchising Director.
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