Railways Bill - continued        House of Commons

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SCHEDULE 2
 
  FINANCIAL ASSISTANCE
  PART I
  LIMITS ON POWER TO MAKE PAYMENTS
 
Franchised passenger services
     1. - (1) The Authority shall not-
 
 
    (a) make any grant or loan, or give any guarantee, to a person under section 8, or
 
    (b) make any payment under an agreement made under that section,
  to the operator of services for the carriage of passengers by railway in respect of any services which have been designated under section 23 of the Railways Act 1993 (services to be provided under a franchise agreement).
 
      (2) Sub-paragraph (1) does not affect the making of any grant or loan, or giving of any guarantee, or the making of any payment under an agreement-
 
 
    (a) in consequence of any condition or other provision of a franchise agreement, or
 
    (b) where the services in respect of which it is made or given are provided by or on behalf of the Authority otherwise than under a franchise agreement.
 
Track access charges for goods services
     2. - (1) The Authority shall not-
 
 
    (a) make any grant or loan or give any guarantee to a person under section 8, or
 
    (b) make any payment under an agreement made under that section,
  in respect of track access charges in connection with the provision of any services for the carriage of goods by railway except pursuant to an access support agreement.
 
      (2) An access support agreement is an agreement entered into by the Authority with a goods service operator, for the purpose of securing the provision of adequate services for the carriage of goods by railway, under which the Authority undertakes to make payments to the operator in respect of all or any part of the track access charges which may be incurred by him in connection with the provision of the services to which the agreement relates.
 
      (3) The Authority shall not enter into an access support agreement unless it is satisfied that benefits of a social or environmental nature are likely to result from the provision of the services to which the agreement relates.
 
      (4) In this paragraph-
 
 
    "goods service operator" means a person who operates services for the carriage of goods by railway,
 
    "railway" has its wider meaning, and
 
    "track access charges" means payments required to be made under an access agreement conferring any permission or right to use track.
 
Freight facilities
     3. - (1) The Authority shall not-
 
 
    (a) make any grant or loan or give any guarantee to a person under section 8, or
 
    (b) make any payment under an agreement made under that section,
  towards the provision, improvement or development of facilities for or in connection with the carriage of goods by railway or the loading or unloading of goods carried or intended to be carried by railway unless the conditions specified in sub-paragraph (2) are satisfied.
 
      (2) Those conditions are-
 
 
    (a) that the Authority is satisfied that the provision, development or improvement of the facilities is likely to secure or encourage the carriage of goods by railway rather than by road,
 
    (b) that the grant, loan, guarantee or payment is towards expenditure which appears to the Authority to be expenditure of a capital nature which is to be incurred in providing, improving or developing the facilities, and
 
    (c) that an application is made to the Authority by the person who intends to provide, improve or develop the facilities supported by such evidence as the Authority may require.
      (3) In this paragraph-
 
 
    "facilities" includes track, rolling stock, depots, access roads and equipment for use in connection with the carriage, loading or unloading of goods, and
 
    "railway" has its wider meaning.
 
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Prepared 7 July 1999