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8.30 pm
The hon. Gentleman asked why there is no upper limit on financial penalties. The important point is that the penalty imposed must be reasonable in all the circumstances of the case. A serious contravention could attract a considerable penalty whereas a minor contravention could attract only a minor penalty. The concept of proportionality is central to the provisions on imposing financial penalties. Furthermore, companies will be able to appeal to the courts on the imposition and the amount of any financial penalty. The courts may quash the penalty or substitute a lower one if they consider the amount to be unreasonable. I say again that the penalties must be of a reasonable amount. Railtrack is appealing to the courts on penalties at present, but, again, I am not able to comment.
Amendment No. 417 would remove the regulator's power to direct the parties to an access agreement--perhaps between Railtrack and a train operating company--to amend an access or network installation contract to permit more extensive use of the railway facility or network installation in question. Clause 208 is necessary because, for the first time in many years, the railway is growing. The hon. Gentleman and I agree about and rejoice in that. We need to be absolutely sure that the mechanism exists to require facility owners to provide additional access rights where there is spare capacity.
Section 22(6) of the Railways Act 1993 provides that the regulator may not require amendments to be made to an access agreement to give additional access rights, and he may not undermine the intention of that provision by entertaining a new application for additional rights. Hence the need to be absolutely sure. I emphasise that this is not additional regulation. Clause 208 makes it clear that the regulator's powers in relation to applications for access apply equally where someone who already has access wants more.
At present, section 22(6) of the 1993 Act prevents a holder of access rights from using section 17 to secure rights to run more trains on reasonable terms. That is nonsense, and it shows how Conservative Members failed to legislate for a growing railway in 1993.
It being five hours after the commencement of proceedings on consideration of the Bill, Mr. Deputy Speaker, pursuant to Order [9 May], put forthwith the Question already proposed from the Chair.
Mr. Deputy Speaker then proceeded to put forthwith the Questions necessary for the disposal of business to be concluded at that hour.
New Clause 15
Review of access charges by Regulator
'.--(1) In the Railways Act 1993, after section 19 insert--
"Review of access charges by Regulator
19A. Schedule 4A to this Act (which contains provision about the review of access charges by the Regulator) shall have effect."
(2) After Schedule 4 to that Act insert, as Schedule 4A, the Schedule set out in Schedule (Review of access charges by Regulator) to this Act.'.--[Mr. Robert Ainsworth.]
Brought up, read the First and Second time, and added to the Bill.
New Clause 16
Licence modifications following Competition Commission report
'.--(1) In section 15 of the Railways Act 1993 (modification of licence conditions following report of Competition Commission), after subsection (4) insert--
"(4A) Where (after considering any representations or objections which are duly made and not withdrawn) the Regulator or Authority proposes to make or require the making of modifications under this section, he or it shall give notice to the Competition Commission--
(a) setting out the modifications he proposes to make or it proposes to require to be made; and
(b) stating the reasons why he proposes to make the modifications or it proposes to require the making of them.
(4B) The Regulator or Authority shall include with the notice under subsection (4A) above a copy of any representations and objections which have been considered.
(4C) If the period within which a direction may be given by the Competition Commission under section 15A below expires without such a direction being given, the Regulator or Authority shall make, or require the making of, the modifications set out in the notice given under subsection (4A) above.
(4D) If a direction is given by the Competition Commission under section 15A(1)(b) below, the Regulator or Authority shall make, or require the making of, such of those modifications as are not specified in the direction."
(2) After that section insert--
"Competition Commission's power to veto modifications following report
15A.--(1) The Competition Commission may, within the period of four weeks beginning with the day on which they are given notice under section 15(4A) above, give a direction to the Regulator or Authority--
(a) not to make, or require the making of, the modifications set out in the notice; or
(b) not to make such of those modifications as are specified in the direction.
(2) The Secretary of State may, if an application is made to him by the Competition Commission within that period of four weeks, extend the period within which a direction may be given under this section to one of six weeks beginning with the day on which the Competition Commission are given notice under section 15(4A) above.
(3) The Competition Commission may give a direction under this section only if the modifications to which it relates do not appear to them requisite for the purpose of remedying or preventing the adverse effects specified in their report on the reference under section 13 above.
(4) If the Competition Commission give a direction under this section, they shall give notice--
(a) setting out the modifications contained in the notice given under section 15(4A) above;
(b) setting out the direction; and
(c) stating the reasons why they are giving the direction.
(5) A notice under subsection (4) above shall be given--
(a) by publishing the notice in such manner as the Competition Commission consider appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the direction; and
(b) by serving a copy of the notice on the holder of the licence.
Making of modifications by Competition Commission
15B.--(1) If the Competition Commission give a direction under section 15A above, they may themselves make such modifications of the conditions of the licence as appear to them requisite for the purpose of remedying or preventing--
(a) the adverse effects specified in their report on the reference under section 13 above; or
(b) such of those adverse effects as would not be remedied or prevented by the modifications made by the Regulator, or required to be made by the Authority, under section 15(4D) above.
(2) In exercising the function conferred by subsection (1) above, the Competition Commission shall have regard to the matters as respects which duties are imposed on the Regulator by section 4 above.
(3) Before making modifications under this section, the Competition Commission shall give notice--
(a) stating that they propose to make the modifications and setting out their effect,
(b) stating the reasons why they propose to make the modifications, and
(c) specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(4) A notice under subsection (3) above shall be given--
(a) by publishing the notice in such manner as the Competition Commission consider appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the modifications; and
(b) by serving a copy of the notice on the holder of the licence.
(5) As soon as practicable after making any modifications under this section, the Competition Commission shall send a copy of those modifications to the Regulator, the Authority and the Health and Safety Executive.
Sections 15A and 15B: supplementary
15C.--(1) The provisions mentioned in subsection (2) below are to apply in relation to the exercise by the Competition Commission of their functions under sections 15A and 15B above as if--
(a) in section 82(1) and (2) of the 1973 Act references to a report of the Competition Commission under that Act were references to a notice under section 15A(4) or 15B(3) above;
(b) in section 85 of that Act references to an investigation on a reference made to the Competition Commission were references to an investigation by the Competition Commission for the purposes of the exercise of their functions under those sections; and
10 May 2000 : Column 926 (c) in section 93B of that Act references to the functions of the Competition Commission under that Act were references to their functions under those sections.
(2) The provisions are--
(a) sections 82(1) and (2) (general provisions as to reports), 85 (attendance of witnesses and production of documents) and 93B (false or misleading information) of the 1973 Act;
(b) Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission's general functions); and
(c) section 24 of the 1980 Act (modification of provisions about performance of such functions).
(3) For the purpose of assisting the Competition Commission in exercising their functions under sections 15A and 15B above, the Regulator and the Authority shall give to the Competition Commission any information in his or its possession which relates to matters relevant to the exercise of those functions and--
(a) is requested by the Competition Commission for that purpose; or
(b) is information which, in his or its opinion, it would be appropriate for that purpose to give to the Competition Commission without any such request;
and any other assistance which the Competition Commission may require, and which it is within his or its power to give, in relation to any such matters.
(4) For the purpose of exercising those functions, the Competition Commission shall take account of any information given to them for that purpose under subsection (3) above.".'.--[Mr. Robert Ainsworth.]
Brought up, read the First and Second time, and added to the Bill.
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