Transport Bill

Transport Bill - continued	House of Commons

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PART IV

RAILWAYS

CHAPTER I

THE STRATEGIC RAIL AUTHORITY

The Authority

The Authority.

176. - (1) There shall be a body corporate known as the Strategic Rail Authority (but in this Part referred to as "the Authority").

(2) The Authority shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown; and its property shall not be regarded as property of, or held on behalf of, the Crown.

Membership of the Authority.

177. - (1) The Authority shall consist of-

(a) not fewer than eight, and

(b) not more than fifteen,

members appointed by the Secretary of State.

(2) But the Secretary of State may by order alter either or both of the numbers for the time being specified in subsection (1); and an order under this subsection shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) In making any appointment to membership of the Authority the Secretary of State shall have regard to the desirability of appointing a person who has experience of, and has shown capacity in, some matter relevant to the functions of the Authority.

Chairing and chief executive.

178. - (1) The Secretary of State-

(a) shall appoint one of the members of the Authority to chair it, and

(b) may appoint another of its members to act as deputy to the member appointed to chair it.

(2) The Secretary of State shall consult the member appointed to chair the Authority before appointing-

(a) any other person to membership of the Authority, or

(b) a member to act as deputy to the member appointed to chair it.

(3) The Authority shall, with the approval of the Secretary of State, appoint a chief executive of the Authority.

(4) A person appointed as chief executive of the Authority shall (if not already a member of the Authority) be appointed as a member.

Further provisions.

179. Schedule 13 contains further provisions about the Authority.

Purposes, strategies and exercise of functions

Purposes.

180. The purposes of the Authority are-

(a) to promote the use of the railway network for the carriage of passengers and goods,

(b) to secure the development of the railway network, and

Strategies.

181. - (1) The Authority shall formulate, and keep under review, strategies with respect to its purposes.

(2) The Authority shall consult the Regulator and such other persons as the Authority thinks fit before formulating a strategy and from time to time as part of keeping its strategies under review.

(3) The Secretary of State may give the Authority directions and guidance in relation to its strategies, in particular in relation to-

(a) the matters to be covered by them,

(b) the issues to be taken into account in formulating them,

(d) the updating of them.

(4) The strategies formulated by the Authority shall include one relating to services in various parts of Great Britain for facilitating the carriage of passengers or goods by rail by way of the Channel Tunnel.

(5) The Authority shall publish its strategies in such manner as it considers appropriate.

Manner of exercise of functions.

182. - (1) The Authority shall exercise its functions with a view to furthering its purposes and shall do so in accordance with any such strategies as it has formulated with respect to them (except when exercising the function of reviewing those strategies).

(2) In exercising its functions in accordance with subsection (1) the Authority shall act in the way best calculated-

(a) to protect the interests of users of railway services,

(b) to contribute to the achievement of sustainable development,

(d) to promote measures designed to facilitate the making by passengers of journeys which involve the use of the services of more than one passenger service operator (including, in particular, arrangements for the issue and use of through tickets),

(e) to impose on the operators of railway services the minimum restrictions which are consistent with the performance of the Authority's functions, and

(f) to enable persons providing railway services to plan the future of their businesses with a reasonable degree of assurance.

(3) In exercising its functions in accordance with subsections (1) and (2) the Authority shall have regard to-

(a) the need to protect all persons from dangers arising from the operation of railways (including, in particular, by taking into account any advice given by the Health and Safety Executive),

(b) the interests of persons who are disabled, and

(4) The Authority shall secure that any grants, loans or other payments made by it are such as it reasonably considers will further its purposes (in accordance with any strategies which it has formulated) efficiently and economically.

(5) Subject to subsection (4), the Secretary of State may give the Authority-

(a) directions and guidance as to the manner in which it is to exercise any of its functions in order to comply with subsections (1) to (3), and

(b) directions not to exercise any of its functions in a particular manner (or not to do so without consulting, or obtaining the consent of, the Secretary of State).

Directions and guidance by Scottish Ministers.

183. - (1) The Scottish Ministers may give the Authority-

(a) directions and guidance in relation to services for the carriage of passengers by rail which start and end in Scotland and are provided under a franchise agreement, and

(b) directions and guidance in relation to services for the carriage of passengers by rail which start or end in Scotland, include sleeping facilities and are provided under a franchise agreement by a person who also provides services within paragraph (a).

(2) The Authority shall not comply with any direction or have regard to any guidance given under subsection (1) to the extent that to do so would be inconsistent with any direction or guidance given under section 181(3) or 182(5).

(3) The Authority shall not comply with any direction or have regard to any guidance given under paragraph (b) of subsection (1) to the extent that to do so-

(a) would require the expenditure by the Authority of any money not provided to it out of the Scottish Consolidated Fund, or

(b) would adversely affect any railway services other than those mentioned in that subsection.

Directions and guidance: supplementary.

184. - (1) Any direction or guidance to the Authority under this Act shall be published by the person by whom it is given in such manner as he considers appropriate.

(2) The Authority shall comply with any direction given to it under this Act (but subject to section 183(2) and (3)).

(3) In exercising its functions the Authority shall have regard to any guidance given to it under this Act (but subject to section 183(2) and (3)).

(4) Any power to give a direction or guidance to the Authority under this Act includes power to vary or revoke the direction or guidance.

Validity of transactions.

185. - (1) A transaction entered into by the Authority is not invalidated merely by reason of a contravention by the Authority of a requirement imposed by section 182(1), (2), (3) or (4) or 184(2) or (3).

(2) Subsection (1) applies whether or not any person who entered into the transaction with the Authority enquired whether the Authority was acting in contravention of such a requirement.

Securing provision of railway services and assets etc.

Financial assistance etc.

186. - (1) The Authority may enter into agreements or other arrangements-

(a) for the purpose of securing the provision, improvement or development by others of any railway services or railway assets, or

(b) for any other purpose relating to any railway or railway services.

(2) Agreements or other arrangements entered into under this section may provide for the Authority to make grants or other payments or loans, or to give guarantees, on such terms and subject to any such conditions as the Authority considers appropriate.

(3) The Authority shall not make any grant or other payment or loan, or give any guarantee, to-

(a) the franchise operator,

(b) the franchisee, or

in respect of any services provided under a franchise agreement otherwise than in consequence of any condition or other provision of the franchise agreement.

(4) The Authority shall not enter into agreements or other arrangements under this section for the purpose of securing the provision, improvement or development in Scotland of-

(a) services for the carriage of goods by railway, or

(b) 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,

if the Scottish Ministers have power to do so under section 216.

(5) Schedule 14 contains provision for the transfer to the Authority of certain property, rights and liabilities of the Secretary of State in consequence of sections 137 and 139 of the Railways Act 1993 being superseded by this section.

(6) In this section-

"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.

Securing of services by franchising.

187. - (1) In section 23 of the Railways Act 1993, in subsection (1) (duty of Authority to designate passenger services as eligible for provision under franchise agreements), for the words after "designate" substitute "such services for the carriage of passengers by railway (other than services which are, by virtue of section 24 below, exempt from designation under this subsection) as it considers ought to be provided under franchise agreements."

(2) In that section, after subsection (2) insert-

	"(2A) A designation may be varied or revoked; but a variation or revocation of the designation of particular services, or services of a class or description, shall not affect any franchise agreement previously entered into with respect to those services or services of that class or description.
	(2B) The Authority shall publish designations, and any variations or revocations of designations, in such manner as it considers appropriate."

(3) In that Act, after section 26 insert-

"No tenders for franchise.	26A. - (1) The Authority shall give notice to the Secretary of State if it has-
	(a) issued an invitation to tender for the provision of any services under section 26 above (otherwise than in compliance with a direction under section 26B(3)(b) below); but
	(b) received no tenders in response to the invitation.
	(2) On receipt of the notice under subsection (1) above the Secretary of State shall (after considering the matter) give to the Authority-
	(a) a direction to issue new invitations to tender for the provision of the services under section 26 above; or
	(b) a direction not to seek to secure the provision of the services under a franchise agreement,
	as he considers appropriate.
	(3) The Secretary of State may at any time-
	(a) revoke a direction under subsection (2)(b) above; and
	(b) instead direct the Authority to issue new invitations to tender for the provision of the services under section 26 above.
No adequate tenders for franchise.	26B. - (1) The Authority shall give notice under subsection (2) below if-
	(a) it has issued an invitation to tender for the provision of any services under section 26 above (otherwise than in compliance with a direction under subsection (3)(b) below); but
	(b) although it has received a tender or tenders in response to the invitation, it considers that the services would be provided more economically and efficiently than under a franchise agreement entered into pursuant to the tender or any of the tenders if the Authority provided them or secured their provision otherwise than under a franchise agreement.
	(2) The notice shall be given to-
	(a) the Secretary of State; and
	(b) the person, or each of the persons, who submitted a tender.
	(3) On receipt of the notice under paragraph (a) of subsection (2) above the Secretary of State shall (after considering the matter and any representations duly made in response to a notice under paragraph (b) of that subsection and not withdrawn) give to the Authority-
	(a) a direction to reconsider the tender or tenders with a view to selecting a franchisee; or
	(b) a direction to issue new invitations to tender for the provision of the services under section 26 above,
	as he considers appropriate.
	(4) The Authority shall give notice under subsection (5) below if it has issued an invitation to tender for the provision of any services under section 26 above in compliance with a direction under subsection (3)(b) above but either-
	(a) it has received no tenders in response to the invitation; or
	(b) although it has received a tender or tenders in response to the invitation, it considers that the services would be provided more economically and efficiently than under a franchise agreement entered into pursuant to the tender or any of the tenders if the Authority provided them or secured their provision otherwise than under a franchise agreement.
	(5) The notice shall be given to-
	(a) the Secretary of State; and
	(b) if the Authority received a tender or tenders, the person, or each of the persons, who submitted a tender.
	(6) In a case where the Authority has received no tenders, on receipt of the notice under subsection (5)(a) above the Secretary of State shall give to the Authority a direction not to seek to secure the provision of the services under a franchise agreement.
	(7) In a case where the Authority has received a tender or tenders, on receipt of the notice under paragraph (a) of subsection (5) above the Secretary of State shall (after considering the matter and any representations duly made in response to a notice under paragraph (b) of that subsection and not withdrawn) give to the Authority-
	(a) a direction to reconsider the tender or tenders with a view to selecting a franchisee; or
	(b) a direction not to seek to secure the provision of the services under a franchise agreement,
	as he considers appropriate.
	(8) Any notice under subsection (2)(b) or (5)(b) above shall specify a period (not being less than 28 days from the date of the service of the notice) within which representations may be made to the Secretary of State.
	(9) The Secretary of State may at any time-
	(a) revoke a direction under subsection (6) or (7)(b) above; and
	(b) instead direct the Authority to issue new invitations to tender for the provision of the services under section 26 above.
Review of directions.	26C. - (1) If the Secretary of State gives a direction under section 26B(3) or (7) above, he shall give notice to the person or persons who submitted the tender or tenders that he has done so.
	(2) An application for the review of a decision of the Secretary of State to give a direction under section 26B(3) or (7) above may be made to the court by any person who submitted a tender within 42 days from the date of service on him of the notice under subsection (1) above.
	(3) Except as provided by subsection (2) above, a direction under section 26A or 26B above shall not be questioned by any legal proceedings whatever.
	(4) In subsection (2) above "the court" means-
	(a) the High Court in relation to England and Wales; and
	(b) the Court of Session in relation to Scotland."

(4) For section 30 of that Act substitute-

"Duty of Authority in absence of franchise.	30. - (1) The Authority shall provide, or secure the provision of, services for the carriage of passengers by railway where-
	(a) a direction not to seek to secure the provision of the services under a franchise agreement has been given to the Authority under section 26A or 26B above (and not revoked); or
	(b) a franchise agreement in respect of the services is terminated or otherwise comes to an end but no further franchise agreement has been entered into in respect of the services (otherwise than because of such a direction).
	(2) The duty in subsection (1) above in relation to any services ceases if the services begin (or again begin) to be provided under a franchise agreement.
	(3) Subsection (1) above does not-
	(a) require the Authority to provide or secure the provision of services if and to the extent that, in its opinion, adequate alternative railway passenger services are available;
	(b) preclude it from giving notice under subsection (5) of section 38 below in relation to any of the services, in which case its duty under this section to secure the provision of the services to which the notice relates will (subject to subsections (5) and (6) of that section) terminate on the day specified in the notice in pursuance of paragraph (b) of that subsection; or
	(c) preclude it from ceasing to provide or secure the provision of any of the services in any case falling within any of paragraphs (a) to (d) of subsection (2) of that section."

(5) In section 18 of that Act (access agreements: contracts requiring approval of Regulator), after subsection (6) insert-

	"(6A) The grounds on which the Regulator may reject, or approve subject to modifications, a proposed access contract submitted to him pursuant to subsection (5) above include that he considers that the use of the facility for which it provides might impede the provision of services-
	(a) under a franchise agreement; or
	(b) under an agreement entered into by the Authority pursuant to its duty under section 30 below."

Limited additional powers to provide railway services.

188. - (1) The Authority may provide services for the carriage of passengers or goods by railway if the Secretary of State consents to the provision of the services by the Authority and either-

(a) the services are the same as, or broadly correspond to, services which were provided by a person other than the Authority before the Authority begins to provide them, or

(b) a scheme under Schedule 18 provides for the transfer to the Authority of a liability to provide them.

(2) The Authority may for the purposes of, or in connection with, any services which it provides under this section-

(a) provide or operate network services, station services or light maintenance services, or

(b) store goods or consign them from any place to which they have been carried by rail.

(3) The Authority may not provide services for the carriage of passengers or goods by railway except in pursuance of the power conferred by this section or in compliance with a duty imposed by the Railways Act 1993.

Securing provision of substitute bus and taxi services.

189. - (1) The Authority may secure the provision by other persons of services for the carriage of passengers by road, by means of public service vehicles or licensed taxis or private hire vehicles, where railway services have been temporarily interrupted or discontinued.

(2) Where it is not practicable for a service by road to correspond precisely to the railway service which has been interrupted or discontinued, it may deviate from the route of that railway service.

(3) Even where it is practicable for it to do so, the route and stopping places of a service by road provided where a railway service has been discontinued need not correspond precisely with the discontinued service so long as it broadly corresponds with the discontinued service in terms of the localities it serves.

(4) Before entering into any agreement with any person in pursuance of this section for the provision of a service by road in a case where a railway service has been discontinued, the Authority shall invite other persons to submit tenders to provide the service by road service for such period, and on such basis, as may be specified in the invitation to tender.

(5) Subsection (4)-

(a) does not apply in relation to an agreement for the provision of a service in a case where such a service provided under an agreement entered into by the Authority in pursuance of this section has been temporarily interrupted, and

(b) does not require the Authority to accept any tender submitted in response to an invitation to tender.

(6) In this section "licensed taxis or private hire vehicles" means-

(a) in England and Wales, vehicles licensed under section 37 of the Town Police Clauses Act 1847, section 6 of the Metropolitan Public Carriage Act 1869, section 48 of the Local Government (Miscellaneous Provisions) Act 1976 or section 7 of the Private Hire Vehicles (London) Act 1998 or under any similar enactment, and

(b) in Scotland, taxis or private hire cars licensed under section 10 of the Civic Government (Scotland) Act 1982.

(7) In this section-

"public service vehicles" has the meaning given by section 1 of the Public Passenger Vehicles Act 1981, and

"stopping places", in relation to a service, means points at which passengers are taken up or set down in the course of the service.

Functions of Franchising Director, Regulator and Board

Assumption of functions of Franchising Director.

190. - (1) Schedule 15 transfers to the Authority the functions of the Franchising Director.

(2) All the property, rights and liabilities of the Franchising Director (including any rights and liabilities relating to staff appointed by him) are by virtue of this section transferred to the Authority.

(3) Nothing in this Part affects the validity of anything done by or in relation to the Franchising Director.

(4) There may be continued by or in relation to the Authority anything (including legal proceedings) which is in the process of being done by or in relation to the Franchising Director when his functions, property, rights and liabilities are transferred to the Authority.

(5) Anything done by the Franchising Director which is in effect immediately before his functions, property, rights or liabilities are transferred to the Authority shall be treated as if done by the Authority.

(6) The Authority shall be substituted for the Franchising Director in instruments, contracts and legal proceedings.

(7) For the purposes of the Employment Rights Act 1996, where a person employed in the civil service of the state becomes an employee of the Authority by virtue of this section-

(a) his period of employment in the civil service of the state counts as a period of employment with the Authority, and

(b) the change of employment does not break the continuity of the period of employment.

(8) In consequence of the preceding provisions of this section the office of Franchising Director is abolished.

(9) If the Secretary of State determines that there are special circumstances which make it right that the person who is the Franchising Director immediately before the office is abolished should receive compensation, the Secretary of State shall pay to that person such compensation as may be determined by the Secretary of State.

Assumption of certain functions of Regulator.

191. Schedule 16 makes provision for the transfer to the Authority of certain functions of the Regulator and of associated property, rights and liabilities.

Assumption of Board's functions relating to transport police.

192. - (1) Schedule 17 transfers to the Authority the functions of the Board relating to the British Transport Police and associated property, rights and liabilities.

(2) The Authority shall exercise its functions relating to the British Transport Police Force in such manner and to such extent as appears to the Authority to be best calculated to promote the efficiency and effectiveness of that Force; and section 182 does not apply to those functions.

Functions relating to Board's property.

193. - (1) Schedule 18 makes provision for the transfer to the Authority of other property, rights and liabilities of the Board.

(2) Any property, rights and liabilities which are transferred to the Authority by virtue of Schedule 18 but are not required by the Authority for the discharge of any of its other functions shall be disposed of or otherwise dealt with by the Authority-

(a) in accordance with directions given to it by the Secretary of State, and

(b) subject to that, in the way which appears to the Authority most economic and efficient.

(3) For the purposes of subsection (2) (and subject to directions given to it by the Secretary of State), the Authority may (in particular)-

(a) retain and manage property,

(b) develop land with a view to disposing of it, and

(4) Section 182 does not apply to the functions in subsections (2) and (3).

Other powers

Power to make bye-laws.

194. - (1) The Authority may make bye-laws regulating-

(a) the use and working of railway assets,

(b) travel on or by means of railway assets,

(d) the conduct of persons while on railway assets.

(2) The Authority may, in particular, make bye-laws-

(a) with respect to tickets issued for entry on railway assets or travel by railway and the evasion of payment of fares or other charges,

(b) with respect to interference with, or obstruction of, the working of any railway or any railway asset or the provision of any railway service,

(d) with respect to the prevention of nuisance,

(e) with respect to the receipt and delivery of goods, and

(f) for regulating the passage of bicycles and other vehicles on footways and other premises and intended for the use of those on foot.

(3) Schedule 19 makes further provision about bye-laws under this section.

(4) For the purposes of this section and that Schedule "railway assets" includes rolling stock other than trains (as well as what is specified in section 6(2) of the Railways Act 1993); and "operator", in relation to such rolling stock, means the person having management of the rolling stock for the time being.

Power to make transfer schemes.

195. Schedule 20 makes provision for the making of transfer schemes by the Authority.

Power to promote and oppose Bills.

196. The Authority-

(a) may promote in Parliament Bills relating to railways, and

(b) may oppose any Bill in Parliament.

Other incidental powers.

197. - (1) The Authority may do anything which it considers-

(a) is necessary or appropriate for or for facilitating, or

(b) is incidental or conducive to,

the exercise of any of its functions.

(2) In particular, the Authority may-

(a) enter into agreements,

(b) acquire or dispose of property,

(d) form bodies corporate or acquire or dispose of interests in bodies corporate, and

(e) promote or assist in the promotion of publicity.

(3) This section has effect subject to any provision of this Part, or of any other enactment, limiting the powers of the Authority.

CHAPTER II

OTHER PROVISIONS ABOUT RAILWAYS

Directions to provide etc. railway facilities

Regulator's power to require provision etc. of railway facilities.

198. In the Railways Act 1993, after section 16 insert-

	"Directions to provide, improve or develop railway facilities
Provision, improvement and development of railway facilities.	16A. - (1) The Regulator may, on an application-
	(a) made by the Authority, or
	(b) made by any other person with the consent of the Authority,
	give to the operator of a network, station or light maintenance depot a direction to provide a new railway facility if the Regulator considers him to be an appropriate person to provide the new railway facility.
	(2) The Regulator may, on an application-
	(a) made by the Authority, or
	(b) made by any other person with the consent of the Authority,
	give to a person who has an estate or interest in, or right over, an existing railway facility a direction to improve or develop the railway facility if the Regulator considers him to be an appropriate person to improve or develop the railway facility.
	(3) The Authority's consent to the making by any other person of an application under subsection (1) or (2) above may be given subject to compliance with conditions (and may be withdrawn if any condition is not complied with before a direction is given).
	(4) Before giving a direction to a person under this section the Regulator shall consult him and such other persons as the Regulator thinks fit.
	(5) The Regulator may only give a direction to a person under this section to provide, improve or develop a railway facility if he is satisfied that the person will be adequately rewarded for providing, improving or developing the railway facility in accordance with the direction.
	(6) The Regulator shall take into account (in particular)-
	(a) any receipts obtained or likely to be obtained by the person (from the Authority, passengers, operators of railway services or any other persons) in connection with, or as a result of, the provision, improvement or development of the railway facility; and
	(b) any other benefit obtained or likely to be obtained by him in consequence of its provision, improvement or development.
	(7) A person shall not be regarded as failing to comply with a direction under this section if he has done everything which it is reasonably practicable to do in order to comply with the direction.
	(8) If he is unable to comply with the direction because he does not have the necessary powers or rights (including rights over land), he shall not be taken to have done everything which it is reasonably practicable to do in order to comply with the direction unless he has done everything which it is reasonably practicable to do in order to obtain those powers or rights.
	(9) A direction under this section may only be revoked or varied by the Regulator-
	(a) on the application of the person to whom it was given or of the Authority; and
	(b) after consultation with whichever of them did not make the application;
	and such a direction may only be varied if the Regulator is satisfied that the person to whom it was given will be adequately rewarded for providing, improving or developing the railway facility in accordance with the varied direction, taking into account (in particular) the matters specified in subsection (6) above.
	(10) Any reference in this section to a railway facility includes part of a railway facility.
	(11) Nothing in this section or a direction given under it-
	(a) limits any power of the Regulator under any other provision of this Act; or
	(b) affects any obligation to provide a new railway facility, or to improve or develop an existing railway facility, arising otherwise than from a direction under this section.
Exemption of railway facilities from section 16A.	16B. - (1) The Secretary of State may, after consultation with the Regulator, by order grant exemption from subsection (1) or (2) of section 16A above (or from both of those subsections) in respect of such railway facilities as may be specified in the order, but subject to compliance with such conditions (if any) as may be so specified.
	(2) An exemption under subsection (1) above may be granted in respect of-
	(a) railway facilities of a particular class or description, or
	(b) a particular railway facility,
	or in respect of part only of railway facilities of a particular class or description or a particular railway facility.
	(3) An exemption under subsection (1) above may be granted generally, to persons of a particular class or description or to a particular person.
	(4) If a person fails to comply with any condition subject to compliance with which an exemption was granted, the Secretary of State may give a direction declaring that the exemption is revoked, so far as relating to that person, to such extent and as from such date as may be specified in the direction.
	(5) Subject to subsection (4) above, an exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be specified in, or determined by or under, the exemption.
	(6) Exemptions may make different provision, or be granted subject to compliance with different conditions, for different cases."

Objectives of Regulator and Secretary of State

Amendment of objectives.

199. - (1) Section 4 of the Railways Act 1993 (general duties of Regulator and Secretary of State) is amended as follows.

(2) In subsection (1) (objectives)-

(a) for "Secretary of State and the Regulator shall each" substitute "Regulator shall",

(b) before paragraph (a) insert-

"(za) to facilitate the furtherance by the Authority of any strategies which it has formulated with respect to its purposes;",

	"(ba) to contribute to the development of an integrated system of transport of passengers and goods;
	(bb) to contribute to the achievement of sustainable development;", and

(d) in paragraph (d) (promotion of competition in provision of railway services), insert at the end "for the benefit of users of railway services".

(3) In subsection (2) (objectives)-

(a) for "Secretary of State and the Regulator shall each" substitute "Regulator shall", and

(b) omit "the Secretary of State or, as the case may be,".

(4) In subsection (3) (safety and the environment), for "Secretary of State and the Regulator shall each" substitute "Regulator shall".

(5) After that subsection insert-

	"(3A) Subsections (1) to (3) above shall have effect in relation to the Secretary of State as in relation to the Regulator, except that in their application to the Secretary of State-
	(a) paragraph (za) of subsection (1) above shall be disregarded; and
	(b) the references in each of the subsections to the functions transferred or assigned to the Secretary of State under or by virtue of this Part include only the functions transferred or assigned to him under or by virtue of sections 6 to 22 and 37 to 50 below."

(6) In subsection (5) (additional duties of Regulator), for paragraph (a) (duty until 31st December 1996 to take account of guidance of Secretary of State) substitute-

"(a) to have regard to any general guidance given to him by the Secretary of State about railway services or other matters relating to railways;".

(7) After subsection (7) insert-

	"(7ZA) Any general guidance given by the Secretary of State to the Regulator about railway services or other matters relating to railways-
	(a) shall be published by the Secretary of State in such manner as he considers appropriate; and
	(b) may be varied or revoked."

Enforcement regime

Penalties.

200. - (1) In the Railways Act 1993, after section 57 insert-

"Penalties.	57A. - (1) If the appropriate authority is satisfied that a relevant operator has contravened or is contravening-
	(a) a relevant condition or requirement, or
	(b) a final or provisional order made by the appropriate authority,
	the appropriate authority may impose on the relevant operator a penalty of such amount as is reasonable.
	(2) A penalty is payable to the Authority.
	(3) The Authority and the Regulator shall each prepare and publish a statement of policy with respect to the imposition of penalties and the determination of their amount.
	(4) The statement of policy may include policies of having regard to-
	(a) the desirability of securing compliance with the relevant condition or requirement or order which has been, or is being, contravened;
	(b) the consequences or likely consequences of anything which has been, is being or is likely to be done or omitted to be done in contravention of that relevant condition or requirement or order; and
	(c) the desirability of deterring contraventions of relevant conditions and requirements and final and provisional orders.
	(5) In deciding whether to impose a penalty, and in determining the amount of any penalty, in respect of a contravention the Authority and Regulator shall have regard to any statement of its or his policy published at the time when the contravention occurred.
	(6) The Authority and Regulator-
	(a) may at any time alter or replace a statement of his or its policy; and
	(b) shall publish the altered or replacement statement.
	(7) The Authority and Regulator shall undertake appropriate consultation when preparing, altering or replacing a statement of policy.
	(8) The Authority and Regulator shall publish a statement of policy in the manner that appears most suitable for bringing it to the attention of those likely to be affected by it.
	(9) No penalty may be imposed in respect of any contravention of a final or provisional order if provision was made in the order by virtue of section 55(7A) above in relation to the contravention.
Procedural requirements for penalties.	57B. - (1) Before it imposes a penalty on a relevant operator, the appropriate authority shall give notice-
	(a) stating that it proposes to impose a penalty on the relevant operator and the amount of the penalty proposed,
	(b) setting out the relevant condition or requirement or order in question,
	(c) specifying the acts or omissions which, in its opinion, constitute or would constitute contraventions of that condition or requirement or order and the other facts which, in its opinion, justify the imposition of a penalty and the amount of the penalty proposed,
	(d) specifying the manner in which, and place at which, it is proposed to require the penalty to be paid, and
	(e) specifying the period (not being less than 21 days from the date of publication of the notice) within which representations or objections with respect to the proposed penalty may be made,
	and shall consider any representations or objections which are duly made and not withdrawn.
	(2) A notice under subsection (1) above shall be given-
	(a) by publishing the notice in such manner as the appropriate authority considers appropriate; and
	(b) by serving a copy of the notice on the relevant operator.
	(3) Where the Regulator serves a copy of a notice under subsection (1) above on a licence holder, he shall also serve a copy on the Authority; and where the Authority so serves a copy of such a notice, it shall also serve a copy on the Regulator.
	(4) The appropriate authority shall not modify a proposal to impose a penalty except-
	(a) with the consent of the relevant operator;
	(b) where the modifications consist of a reduction of the amount of the penalty or a deferral of the date by which it is to be paid; or
	(c) after complying with the requirements of subsection (5) below.
	(5) The requirements mentioned in subsection (4)(c) above are that the appropriate authority shall-
	(a) give to the relevant operator such notice as appears to it requisite of its modified proposal;
	(b) unless the proposed modifications are trivial, in that notice specify a period (not being less than seven days from the date of service of the notice) within which representations or objections with respect to the proposed modifications may be made; and
	(c) consider any representations or objections which are duly made and not withdrawn.
	(6) As soon as practicable after imposing a penalty, the appropriate authority shall give notice-
	(a) stating that it has imposed a penalty on the relevant operator and its amount;
	(b) setting out the relevant condition or requirement or order in question;
	(c) specifying the acts or omissions which, in its opinion, constitute or would constitute contraventions of that condition or requirement or order and the other facts which, in its opinion, justify the imposition of the penalty and its amount;
	(d) specifying the manner in which, and place at which, the penalty is to be paid; and
	(e) specifying the date (not being less than fourteen days from the date of publication of the notice) by which the penalty is to be paid.
	(7) A notice under subsection (6) above shall be given-
	(a) by publishing the notice in such manner as the appropriate authority considers appropriate; and
	(b) by serving a copy of the notice on the relevant operator.
	(8) The relevant operator may, within 21 days of the date of service on him of the notice under subsection (6) above, make an application to the appropriate authority for it to specify different dates by which different portions of the penalty are to be paid.
Interest and payment of instalments.	57C. - (1) If the whole or any part of a penalty is not paid by the date by which it is to be paid, the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838.
	(2) If an application is made under subsection (8) of section 57B above in relation to a penalty, the penalty need not be paid until the application has been determined.
	(3) If the appropriate authority grants an application under that subsection in relation to a penalty but any portion of the penalty is not paid by the date specified in relation to it by the appropriate authority under that subsection, so much of the penalty as has not already been paid is to be paid immediately.
Validity and effect of penalties.	57D. - (1) If the relevant operator to whom a penalty order relates is aggrieved by a penalty and desires to question its validity on the ground-
	(a) that it was not within the powers of section 57A above,
	(b) that any of the requirements of section 57B above have not been complied with in relation to it and his interests have been substantially prejudiced by the non-compliance, or
	(c) that it was unreasonable of the appropriate authority not to grant an application under section 57B(8) above,
	he may, within 42 days from the date of service on him of the notice under section 57B(6) above, make an application to the court under this section.
	(2) If an application is made under this section in relation to a penalty, the penalty need not be paid until the application has been determined.
	(3) On such an application the court, if satisfied that any of the grounds mentioned in subsection (1) above is established-
	(a) may quash the penalty,
	(b) may substitute a penalty of such lesser amount as the court considers appropriate in all the circumstances of the case, or
	(c) may specify as the date by which the penalty, or any portion of the penalty, is to be paid a date later than that specified in the notice under section 57B(6) above,
	or, in the case of an application on the ground in subsection (1)(c) above, may specify different dates by which different portions of the penalty are to be paid.
	(4) Where the court substitutes a penalty of a lesser amount it may require the payment of interest on the substituted penalty at such rate, and from such date, as it determines; and where it specifies as a date by which the penalty, or a portion of the penalty, is to be paid a date before the determination of the application it may require the payment of interest on the penalty, or portion, from that date at such rate as it determines.
	(5) Except as provided by this section, the validity of a penalty shall not be questioned by any legal proceedings whatever."

(2) In section 55 of that Act (orders for securing compliance), for subsection (8) substitute-

"(7A) The provision that may be made in a final or provisional order includes, in particular, provision requiring the operator to pay to the Authority in the event of any specified contravention of the order such reasonable sum in respect of the contravention as is specified in, or determined in accordance with, the order in such manner, and at such time and place, as is so specified or determined."

Orders for securing compliance.

201. - (1) In section 55 of the Railways Act 1993 (orders for securing compliance)-

(a) in subsection (5) (cases where order shall not be made or confirmed) omit paragraphs (b) and (c),

(b) after subsection (5A) insert-

	"(5B) If the appropriate authority is satisfied-
	(a) that the relevant operator has agreed to take, and is taking, all such steps as it appears to the appropriate authority for the time being to be appropriate for the relevant operator to take for the purpose of securing or facilitating compliance with the condition or requirement in question, or
	(b) that the contravention or apprehended contravention will not adversely affect the interests of users of railway services or lead to any increase in public expenditure,
	it shall only make a final order, or make or confirm a provisional order, if it considers it appropriate to do so.", and

(c) in subsection (6) (requirement to serve and publish notice that subsection (5) applies), for "or (5A)(a)" substitute ", (5A) or (5B)(a)".

(2) In section 56 of that Act (procedural requirements about orders)-

(a) in subsection (1)(c) (requirement of at least 28 days' notice for making representations or objections to proposed final order or proposed confirmation of provisional order), for "28" substitute "21",

(b) in subsection (4)(b) (requirement of at least 28 days' notice for making representations or objections to proposed modifications), for "in that notice specify the period (not being less than 28" substitute "unless the proposed modifications are trivial, in that notice specify a period (not being less than seven", and

(c) in subsection (6)(b) (requirement of at least 28 days' notice for making representations or objections to proposal to revoke order), for "28" substitute "21".

Consultative committees

Renaming of committees.

202. - (1) The Central Rail Users' Consultative Committee is renamed the Rail Passengers' Council and the Rail Users' Consultative Committees are renamed Rail Passengers' Committees.

(2) Schedule 21 makes amendments in consequence of subsection (1).

Extension of functions.

203. - (1) Sections 76 and 77 of the Railways Act 1993 (duties of Central Committee and consultative committees) are amended as follows.

(2) In subsection (1) of each of those sections, for paragraph (a) (duty to investigate any matter which relates to the provision of railway passenger services by the Board or a subsidiary, under a franchise agreement or on behalf of the Franchising Director) substitute-

"(a) to the provision of railway passenger services, or".

(3) In-

(a) subsection (5)(b) of section 76, and

(b) subsection (4)(b) of section 77,

(matters to be referred), after "that" insert "a franchisee is contravening, or is likely to contravene, any term of the franchise agreement or that".

(4) After subsection (7) of section 76 insert-

	"(7A) It shall also be the duty of the Rail Passengers' Council, so far as it appears expedient from time to time to do so-
	(a) to keep under review matters affecting the interests of the public in relation to railway passenger services and station services;
	(b) to make representations to, and consult, such persons as they think appropriate about those matters; and
	(c) to co-operate with other bodies representing the interests of users of public passenger transport services.
	(7B) The Secretary of State may, after consultation with the Rail Passengers' Council, make an order excluding services from the duties imposed by this section; and an order under this subsection-
	(a) may exclude services of a particular class or description, particular services or services provided by a particular person;
	(b) may provide that services are excluded subject to compliance with specified conditions; and
	(c) may not revoke an exclusion except for breach of condition or in accordance with the order which made it."

(5) After subsection (9) of section 77 insert-

	"(9A) It shall also be the duty of each Rail Passengers' Committee, so far as it appears expedient from time to time to do so-
	(a) to keep under review matters affecting the interests of the public in relation to railway passenger services and station services; and
	(b) to make representations to, and consult, such persons as they think appropriate about those matters; and
	(c) to co-operate with other bodies representing the interests of users of public passenger transport services.
	(9B) The Secretary of State may, after consultation with the Rail Passengers' Council, make an order excluding services from the duties imposed by this section; and an order under this subsection-
	(a) may exclude services of a particular class or description, particular services or services provided by a particular person;
	(b) may provide that services are excluded subject to compliance with specified conditions; and
	(c) may not revoke an exclusion except for breach of condition or in accordance with the order which made it."

Financial and procedural changes.

204. Schedule 22 makes amendments of the provisions about the finances and procedures of consultative committees.

Access contracts

Regulator's general approvals of access contracts etc.

205. - (1) In subsection (1) of section 18 of the Railways Act 1993 (access contracts requiring approval of Regulator), after paragraph (b) insert "or

(c) the access contract is of a class or description specified in a general approval given by the Regulator;";and for the words from "which is" to the end substitute "shall be void unless one of the conditions in paragraphs (a) to (c) above is satisfied."

(2) After subsection (7) of that section insert-

	"(7A) Where the Regulator gives or revokes a general approval under subsection (1)(c) above, he shall publish the approval or revocation in such manner as he considers appropriate.
	(7B) The revocation of a general approval given under subsection (1)(c) above shall not affect the continuing validity of any access contract to which it applied."

(3) In subsection (3) of section 19 of that Act (installation access contracts requiring approval of Regulator), after paragraph (b) insert "or

(c) the installation access contract is of a class or description specified in a general approval given by the Regulator;";and for the words from "which is" to the end substitute "shall be void unless one of the conditions in paragraphs (a) to (c) above is satisfied."

(4) After subsection (5) of that section insert-

	"(5A) Where the Regulator gives or revokes a general approval under subsection (3)(c) above, he shall publish the approval or revocation in such manner as he considers appropriate.
	(5B) The revocation of a general approval given under subsection (3)(c) above shall not affect the continuing validity of any installation access contract to which it applied."

(5) In section 72(2)(b)(v) of that Act (provisions of general approvals under section 22(3) to be entered in register kept by Regulator), after "section" insert "18(1)(c), 19(3)(c) or".

(6) In section 83(1) of that Act (interpretation), in the definition of "access agreement"-

(a) in paragraph (a), for "entered into pursuant to directions under section 17 or 18" substitute "which satisfies one of the conditions in paragraphs (a) to (c) of section 18(1)", and

(b) in paragraph (b), for "entered into pursuant to directions under section 19" substitute "which satisfies one of the conditions in paragraphs (a) to (c) of section 19(3)".

Amendment of access agreements.

206. - (1) In subsection (1) of section 22 of the Railways Act 1993 (amendment of access agreement void unless approved by Regulator), insert at the end "or is made pursuant to directions under section 22A below."

(2) After that section insert-

"Directions to amend access agreements.	22A. - (1) The Regulator may, on the application of the person permitted by an access agreement to use the whole or part of a railway facility or network installation, give directions requiring the parties to the access agreement to make to the agreement-
	(a) amendments permitting more extensive use of the railway facility or network installation by the applicant; and
	(b) any amendments which the Regulator considers necessary or desirable in consequence of those amendments.
	(2) In subsection (1)(a) above "more extensive use" means-
	(a) increased use for the purpose for which the applicant is permitted by the access agreement to use the railway facility or network installation, or
	(b) (in the case of a railway facility) use for any other permitted purpose,
	and if the applicant is permitted to use only part of the railway facility or network installation, includes use for the purpose for which he is permitted to use it, or (in the case of a railway facility) for any other permitted purpose, of any other part of the railway facility or network installation.
	(3) In subsection (2) above "permitted purpose", in relation to a railway facility, means a purpose for which directions may be given in relation to the railway facility under section 17 above.
	(4) No directions shall be given under this section in relation to a railway facility if and to the extent that-
	(a) the railway facility is, by virtue of section 20 above, an exempt facility; or
	(b) performance of the access agreement as amended would necessarily involve the facility owner in being in breach of another access agreement or an international railway access contract.
	(5) No directions shall be given under this section in relation to a railway facility or network installation if and to the extent that, as a result of an obligation or duty owed by the facility owner or installation owner which arose before the coming into force of section 17 or 19 above, the consent of some other person is required by him before he may make the amendments.
	(6) The Regulator shall not have power to direct or otherwise require amendments to be made to an access agreement except in accordance with this section.
	(7) Nothing in this section authorises the Regulator to give directions to any person requiring him to grant a lease of the whole or any part of a railway facility or network installation.
	(8) In this section and section 22B below-
	(a) "international railway access contract" and "lease" have the same meaning as in section 17 above; and
	(b) "network installation" has the same meaning as in section 19 above.
Applications for directions: procedure.	22B. - (1) Schedule 4 to this Act shall have effect with respect to applications for directions under section 22A above as it has effect with respect to applications for directions under section 17 above (but subject as follows).
	(2) In its application by virtue of this section Schedule 4 to this Act has effect with the following modifications-
	(a) in paragraph 1, in the definition of "the facility owner", for "17(1)" there shall be substituted "22A" and, in the definition of "interested person", for "enter into the required access contract" there shall be substituted "make the amendments";
	(b) in paragraph 2(1), for "which the applicant proposes should be contained in the required access contract" and "to be contained in the required access contract" there shall be substituted "of the proposed amendments";
	(c) in paragraph 5(2), for "to the facility owner requiring him to enter into an access contract" there shall be substituted "under section 22A of this Act";
	(d) for paragraph 5(2)(a)(i) and (ii) there shall be substituted "the amendments to be made and the date by which they are to be made; and";
	(e) in paragraph 6(2), for the words from "facility owner's" to the end of paragraph (c) there shall be substituted "making of the amendments, the performance of the access agreement as amended or failing to take any step to protect the interests of the interested person in connection with the application for directions or the making of the amendments,"; and
	(f) in paragraph 6(3), for "any access contract which is entered into" there shall be substituted "the amendments made";
	and the definition of "the required access contract", and the words following that definition, in paragraph 1 and paragraph 5(4) shall be omitted.
	(3) In its application by virtue of this section in relation to an application relating to an installation access contract Schedule 4 to this Act has effect with the following further modifications-
	(a) references to the railway facility shall have effect as references to the network installation;
	(b) references to the facility owner shall have effect as references to the installation owner; and
	(c) in the definition of "interested person" in paragraph 1, for "17" there shall be substituted "19".
	(4) The Regulator may determine that, in their application by virtue of this section in relation to any particular application, paragraphs 3 and 4 of Schedule 4 to this Act shall have effect as if for any of the numbers of days specified in them there were substituted the lower number specified by the Regulator.
Amendment: supplementary.	22C. If an access agreement includes provision for any of its terms to be varied-
	(a) by agreement of the parties, or
	(b) by direction or other requirement of the Regulator,
	a variation made pursuant to that provision shall not be regarded for the purposes of section 22 or 22A above as an amendment of the agreement."

Prospective facility owners, proposed facilities etc.

207. - (1) In section 17(6) of the Railways Act 1993 (directions requiring facility owners to enter into contracts for use of their railway facilities), in the definition of "facility owner", after paragraph (b) insert "but also includes a person before he becomes a facility owner;".

(2) In section 19 of that Act (contracts for use of installations comprised in a network)-

(a) in subsection (9), in the definition of "installation owner", after paragraph (b) insert "but also includes a person before he becomes an installation owner;", and

(b) in subsection (11), insert at the end "and to one which is proposed to be constructed or is in the course of construction."

(3) In section 83(1) of that Act (interpretation of Part I), in the definition of "railway facility", insert at the end "including one which is proposed to be constructed or is in the course of construction".

Closures

Transfer of Regulator's functions to Secretary of State.

208. - (1) In sections 37(6), 38(5), 39(7), 40(5), 41(6) and 42(4) of the Railways Act 1993 (lodging of objections to proposed closures with Regulator), for "Regulator" substitute "Secretary of State".

(2) In sections 37(9), 38(7), 39(10), 40(7), 41(9) and 42(6) of that Act, in the definition of "the final decision on the closure question", for paragraphs (a) and (b) substitute "the Secretary of State's decision under section 43(9) below with respect to the proposed closure;".

(3) In section 43 of that Act (notification to, and functions of, Regulator)-

(a) for "Regulator" (in each place except subsection (11)) substitute "Secretary of State",

(b) omit subsection (11) (time limit for making of decisions by Regulator), and

(4) Omit section 44 of that Act (reference of Regulator's decisions to Secretary of State).

(5) In section 46 of that Act (variation of closure conditions)-

(a) in subsection (1), for "Regulator" substitute "Secretary of State" and omit the words from ", other than" to the end,

(b) in subsection (2), for "Regulator" substitute "Secretary of State" and for "Secretary of State" substitute "Regulator", and

(6) In section 48 of that Act (experimental services)-

(a) in subsection (1), for ", 43 and 44" substitute "and 43", and

(b) in subsection (7), for "Regulator" substitute "Secretary of State".

(7) In section 68 of that Act (investigatory functions of Regulator), omit subsection (1)(b) (duty to investigate contravention of condition of closure consent).

Conditions.

209. - (1) In section 37(1) of the Railways Act 1993 (notice of proposed closure of non-franchised passenger services except where closure is minor closure), after "minor closure" insert "and the service operator has agreed to comply with any conditions imposed by the Authority".

(2) In sections 39(1) and 41(1) of that Act (notice of proposed closure of whole or part of network or facility except where closure is minor closure), after "minor closure" insert "and the operator has agreed to comply with any conditions imposed by the Authority".

(3) In section 55(10) of that Act (enforcement), in the definition of "relevant condition or requirement", after paragraph (c) insert-

"(d) in the case of a person (other than the Authority) who is required to comply with closure conditions or has agreed to comply with conditions under section 37(1), 39(1) or 41(1) above, any of those conditions;",and, in the definition of "relevant operator", for "or person under closure restrictions" substitute ", person under closure restrictions or person who is required to comply with closure conditions or has agreed to comply with conditions under section 37(1), 39(1) or 41(1) above".

(4) In sections 37(8)(b), 38(6)(b), 39(9)(b), 40(6)(b), 41(8)(b) and 42(5)(b) of that Act (securing compliance with closure conditions), after "secure" insert "(in accordance with sections 55 to 58 below)".

Closure of unnecessary track to be minor closure.

210. In section 39(10) of the Railways Act 1993 (proposals to close part of network used or previously used for or in connection with provision of services for carriage of passengers), in the definition of "minor closure", after paragraph (a) insert-

	"(aa) any part of a network which consists of a stretch of track, or installations associated with a stretch of track, doing no more than serve a station or light maintenance depot, or some part of it, where the circumstances are such that-
	(i) that part of the network is not necessary for the use of the station or light maintenance depot, or that part of it, for the purpose of or in connection with the provision of services for the carriage of passengers by railway; or
	(ii) the use of the station or light maintenance depot, or that part of it, has been or is proposed to be subject to termination constituting a minor closure within the meaning of section 41 below; or".

General determinations of minor closures.

211. In the Railways Act 1993, after section 46 insert-

"General determinations of minor closures.	46A. - (1) The Authority may make a general determination for the purposes of any or all of sections 37(1), 38(2), 39(1), 40(2), 41(1) and 42(2) above that closures of a particular class or description are minor closures.
	(2) Where the Authority makes or revokes a general determination under subsection (1) above, it shall publish the determination or revocation in such manner as it considers appropriate.
	(3) The revocation of a general determination made under subsection (1) above shall not affect any closure if its status as a minor closure by virtue of the general determination has been relied on before the revocation as the ground for not giving a notice or for discontinuing any services or the operation of the whole or part of any network or facility."

Operator's duty to continue where closure should be permitted.

212. - (1) In section 37 of the Railways Act 1993 (closures of non-franchised passenger services)-

(a) in subsections (1) and (3)(b), for "will" substitute "proposes to", and

(b) in subsection (6), for the words following the paragraphs substitute "and the service operator shall not discontinue the services to which the proposed closure relates before the end of the interim period."

(2) In section 39(7) of that Act (closures of operational passenger networks), for the words following the paragraphs substitute "and the operator shall not discontinue the operation of the network, or the part of the network, to which the proposed closure relates before the end of the interim period."

(3) In section 41(6) of that Act (closures of railway facilities used in connection with passenger services), for the words following the paragraphs substitute "and the operator shall not terminate the use of the relevant facility, or the part of the relevant facility, to which the proposed closure relates before the end of the interim period."

(4) In section 55(10) of that Act (enforcement), in the definition of "relevant condition or requirement", in paragraph (c)(i), for the words after "under" substitute "section 37(1) or (6), 39(1) or (7) or 41(1) or (6) above not to discontinue a railway passenger service or the operation of the whole or part of a network or not to terminate the use of the whole or part of a station or light maintenance depot; and".

The Board

Transfer of Board's property etc. to Secretary of State.

213. Schedule 23 makes provision for the transfer to the Secretary of State of property, rights and liabilities of the Board.

Winding down and abolition of Board.

214. - (1) The Board shall give to the Authority any information, prepare any document and do any other thing which appears to the Authority appropriate for facilitating the carrying into effect of, or of any provision made under, sections 192, 193 and 213 and Schedules 17, 18 and 23.

(2) The Secretary of State may-

(a) by order made by statutory instrument reduce the membership of the Board to a chairman and one or more other persons appointed by the Secretary of State, and

(b) by notice in writing remove from office any member of the Board or vary the terms of his appointment.

(3) When, after consulting the Board, the Secretary of State considers that it is no longer necessary for the Board to continue to exist, he shall by order made by statutory instrument provide for its dissolution.

(4) If a person ceases to hold office as chairman or a member of the Board by virtue of subsection (2)(b) or (3) before his term of office would otherwise have expired and the Secretary of State determines that there are special circumstances which make it right that the person should receive compensation-

(a) if the person ceases to hold office by virtue of subsection (2)(b), the Board, and

(b) if the person ceases to hold office by virtue of subsection (3), the Secretary of State,

shall pay to the person such compensation as may be determined by the Secretary of State.

(5) Where an order under subsection (3) provides for the Board to be dissolved with effect from a time which would not, apart from this subsection, be the end of its financial year, the financial year of the Board which is current at that time shall be deemed to end with its dissolution.

(6) An order under subsection (3) which so provides may contain such provision as the Secretary of State considers appropriate (including provision modifying the effect of any enactment) for the Board or the Authority-

(a) to prepare accounts for the final financial year of the Board, and

(b) to make and lay before Parliament a report relating to the carrying out of the Board's functions during that financial year.

Passenger Transport Executives

Powers of Executives.

215. In section 34 of the Railways Act 1993 (Passenger Transport Authorities and Executives: franchising), after subsection (8) insert-

	"(8A) The Authority shall not do anything under subsection (8) above if or to the extent that, in its opinion, to do it would prevent or seriously hinder the Authority-
	(a) from complying with any directions given to it by the Secretary of State under section 182(5) of the Transport Act 2000 or from having regard to any guidance so given; or
	(b) from complying with any directions given to it by the Scottish Ministers under section 183 of that Act with which it must comply or from having regard to any guidance so given to which it must have regard;
	or would have an adverse effect on the provision of services for the carriage of passengers or goods by railway (whether inside or outside the Passenger Transport Executive's passenger transport area).
	(8B) The Authority shall not do anything under subsection (8) above if or to the extent that, in its opinion, to do it would increase the amount of any payments to be made by the Authority under a franchise agreement to-
	(a) the franchise operator,
	(b) the franchisee, or
	(c) any servant, agent or independent contractor of the franchise operator or franchisee,
	unless the Authority is of the opinion that the statement under subsection (5) above demonstrates that there are special circumstances for doing it."

Miscellaneous

Freight assistance by Scottish Ministers and Welsh Assembly.

216. - (1) The Authority shall notify the Scottish Ministers and the National Assembly for Wales about any scheme in accordance with which it exercises its functions under section 186 for the purpose of securing the provision, improvement or development of-

(a) services for the carriage of goods by railway, or

(b) 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,

and the criteria applied by it in exercising those functions for that purpose in accordance with the scheme.

(2) The Scottish Ministers and the National Assembly for Wales may enter into agreements or other arrangements for the purpose of securing the provision, improvement or development in Scotland and Wales (respectively) of-

(a) services for the carriage of goods by railway, and

(b) 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,

in accordance with any scheme notified to them under subsection (1) and applying the criteria so notified.

(3) In this section-

"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.

Competition functions of Regulator.

217. - (1) Section 67 of the Railways Act 1993 (functions of Regulator and Director General of Fair Trading) is amended as follows.

(2) In subsection (3) (concurrent exercise by Regulator and Director of functions under Part I of Competition Act 1998 so far as relating to agreements etc. which relate to supply of railway services), for "railway services" substitute "services relating to railways".

(3) After that subsection insert-

	"(3ZA) In subsection (3) above "services relating to railways" means-
	(a) railway services;
	(b) the provision or maintenance of rolling stock;
	(c) the development, maintenance or renewal of a network, station or light maintenance depot; and
	(d) the development, provision or maintenance of information systems designed wholly or mainly for facilitating the provision of railway services.
	(3ZB) The Secretary of State may by order amend subsection (3ZA) above; and an order under this subsection shall not be made unless a draft of the statutory instrument containing it has been laid before and approved by a resolution of each House of Parliament."

Pension guarantees.

218. - (1) The Authority may give guarantees to the trustees of an occupational pension scheme if the Authority considers that it is desirable to do so for ensuring that the trustees of the scheme are, or will be, able to meet their liabilities to make payments (as they fall to be met) with respect to pension rights under the scheme of any person who was at any time-

(a) employed by the Board or a wholly owned subsidiary of the Board, or

(b) a member of staff of the Regulator or Franchising Director.

(2) In subsection (1) "trustees", "occupational pension scheme" and "pension rights" have the same meanings as in Schedule 11 to the Railways Act 1993.

Stamp duty and stamp duty reserve tax.

219. - (1) Stamp duty shall not be chargeable on-

(a) any scheme under Part II of Schedule 14, Part III of Schedule 16, Schedule 18, paragraph 1 of Schedule 20 or Schedule 23, or

(b) any instrument or agreement which is certified to the Commissioners of Inland Revenue by the Secretary of State as made in pursuance of any such scheme.

(2) No such scheme, and no instrument or agreement which is certified as mentioned in subsection (1)(b), shall be taken to be duly stamped unless-

(a) it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with that duty or that it is duly stamped, or

(b) it is stamped with the duty to which it would be liable, apart from this section.

(3) Section 12 of the Finance Act 1895 shall not operate to require-

(a) the delivery to the Inland Revenue of a copy of this Act, or

(b) the payment of stamp duty under that section on any copy of this Act,

and shall not apply in relation to any instrument on which, by virtue of subsection (1), stamp duty is not chargeable.

(4) An agreement to transfer chargeable securities, as defined in section 99 of the Finance Act 1986, to a person specified in sub-paragraph (2)(a) to (c) of paragraph 1 of Schedule 20 shall not give rise to a charge to stamp duty reserve tax if the agreement is made for the purposes of, or for purposes connected with, a scheme under that paragraph.

Abolition of requirements for Treasury approval.

220. - (1) The Railways Act 1993 has effect subject to the following amendments.

(2) In Schedule 1 (Regulator), in paragraph 1 (remuneration, pensions etc.), omit sub-paragraph (4) (Treasury approval of Secretary of State's determinations).

(3) In Schedule 2 (rail users' consultative committees), in paragraph 2 (remuneration etc. of chairman), omit ", with the approval of the Treasury,".

(4) In Schedule 3 (Central Rail Users' Consultative Committee), in paragraph 2 (remuneration etc. of chairman), omit ", with the approval of the Treasury,".

Prepared 1 December 1999