Railways Bill

House of Commons

Session 2004 - 05
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Other Bills before Parliament

Railways Bill

Railways Bill
Part 5 — Further miscellaneous provisions
51

of activities carried on by it as franchise operator in
relation to a Scottish franchise agreement.”
(2)
In subsection (1) of section 60 (petition for railway administration order), for
the words from the beginning to the end of paragraph (b) substitute—
“(1)
If, on an application relating to a protected railway company”.
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(3)
After that subsection insert—
“(1A)
An application under subsection (1) for the making of a railway
administration order may be made—
(a)
in the case of an application on the ground specified in
paragraph (a) of subsection (2), only by the appropriate national
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authority; and
(b)
in the case of an application on the ground specified in
paragraph (b) of that subsection, only by the Secretary of State.”
(4)
In each of the following provisions of the 1993 Act, for “Secretary of State”,
wherever occurring, substitute “appropriate national authority”, namely—
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(a)
section 61(1)(a)(i) and (2)(a) (notice and power to petition for railway
administration order in the case of a winding-up petition);
(b)
section 62(2)(a)(i), (3)(a), (5)(a)(i), (6)(a) and (7)(a) (notice and power to
petition for railway administration order in the case of voluntary
winding-up and other insolvency proceedings); and
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(c)
paragraphs 3, 7, 9 and 10 of Schedule 6 (modifications of the Insolvency
Act 1986 (c. 45)).
(5)
In paragraph 1 of Schedule 6 to the 1993 Act, before the “and” at the end of
paragraph (a) insert—
“(aa)
as if references in those sections to the appropriate national
25
authority were to be construed in accordance with section
59(6)(za) of this Act;”.
(6)
In paragraphs 7(4), 8, and 10(5) of Schedule 6 to the 1993 Act, for “the Strategic
Rail Authority” substitute “the appropriate national authority”.
(7)
In paragraph 2 of Schedule 7 to the 1993 Act (making and modification of
30
transfer schemes in connection with railway administration orders), for each of
the following substitute “the appropriate national authority”, namely—
(a)
in sub-paragraph (2), the words from “the Secretary of State” onwards;
(b)
in sub-paragraphs (4) and (5), “the Secretary of State”, wherever
occurring;
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(c)
in sub-paragraph (6), “the Secretary of State or Authority”, in each
place, and “the Secretary of State or the Authority”; and
(d)
in sub-paragraph (7), the words from “the Secretary of State or, in” to
“the Authority” and “the Secretary of State or Authority”.
(8)
In that paragraph—
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(a)
in sub-paragraph (3), for the words from “the Secretary of State”, where
first occurring, to “or Authority” substitute “the appropriate national
authority, it”; and
(b)
in sub-paragraph (6), for “his” substitute “the appropriate national
authority’s”.
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Railways Bill
Part 5 — Further miscellaneous provisions
52

(9)
After sub-paragraph (8) of that paragraph insert—
    “(9)
A statutory instrument containing an order under this paragraph by
the Scottish Ministers is subject to annulment in pursuance of a
resolution of the Scottish Parliament.”
(10)
Where a railway administration order is in force immediately before the
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commencement of this section in relation to a Scottish protected railway
company, things done by or in relation to the Secretary of State for the
purposes of or in connection with that order and by virtue of —
(a)
any provision of sections 59 to 62 of the 1993 Act, or
(b)
any provision of Schedule 6 or 7 to that Act, or of the Insolvency Act
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1986 (c. 45) as modified by Schedule 6 to the 1993 Act,

are to have effect, so far as necessary for giving them continuing validity and
effect, as if done by the Scottish Ministers.
(11)
The power to amend Schedule 6 to the 1993 Act under section 249 of the
Enterprise Act 2002 (c. 40) applies to the modifications of that Schedule by this
15
Act, as it applies to that Schedule.
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Assistance by Scottish Ministers for companies in railway administration
(1)
In section 63 of the 1993 Act (financial assistance by the Secretary of State where
railway administration orders made)—
(a)
in subsection (1), after “a company” insert “other than a Scottish
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protected railway company”; and
(b)
in subsection (2), for the words from “in relation to which” onwards
substitute “where that company—
(a)
is a company in relation to which a railway
administration order is in force at the time when the
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guarantee is given; and
(b)
is not a Scottish protected railway company.”
(2)
After section 64 of that Act insert—
“64A
Financial assistance by Scottish Ministers
(1)
Where a railway administration order is for the time being in force in
30
relation to a Scottish protected railway company, the Scottish Ministers
may—
(a)
make grants or loans to the company of such sums as appear to
them to be appropriate for the purpose of facilitating the
achievement of the purposes of the order; or
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(b)
agree to indemnify a relevant person in respect of—
(i)
liabilities incurred by that person in connection with the
carrying out by the railway administrator of his
functions under the order; and
(ii)
loss or damage incurred by that person in that
40
connection.
(2)
The Scottish Ministers may guarantee—
(a)
the repayment of the principal of any sum borrowed by a
Scottish protected railway company in relation to which a
railway administration order is in force when the guarantee is
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given;

Railways Bill
Part 5 — Further miscellaneous provisions
53

(b)
the payment of interest on a sum so borrowed; and
(c)
the discharge of any other financial obligation in relation to a
sum so borrowed.
(3)
A grant, loan, indemnity or guarantee under this section may be made
or given in whatever manner, and on whatever terms and subject to
5
whatever conditions, the Scottish Ministers consider appropriate.
(4)
The terms on which a grant may be made under this section include, in
particular, terms requiring the whole or a part of the grant to be repaid
to the Scottish Ministers if there is a contravention of the other terms on
which the grant is made.
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(5)
The terms on which a loan may be made under this section include, in
particular, terms requiring—
(a)
the loan to be repaid at such times and by such methods, and
(b)
interest to be paid on the loan at such rates and at such times,

as the Scottish Ministers may from time to time direct.
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(6)
The power of the Scottish Ministers under this section to agree to
indemnify a relevant person—
(a)
is confined to a power to agree to indemnify that person in
respect of liabilities, loss and damage incurred or sustained by
him as a relevant person; but
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(b)
includes power to agree to indemnify persons (whether or not
they are identified or identifiable at the time of the agreement)
who subsequently become relevant persons.
(7)
A person is a relevant person for the purposes of this section if he is—
(a)
the railway administrator;
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(b)
an employee of the railway administrator;
(c)
a member or employee of a firm of which the railway
administrator is a member;
(d)
a member or employee of a firm of which the railway
administrator is an employee;
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(e)
a member of a firm of which the railway administrator was an
employee or member at a time when the order was in force;
(f)
a body corporate which is the employer of the railway
administrator; or
(g)
an officer, employee or member of such a body corporate.
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(8)
In this section—
(a)
references to the railway administrator, in relation to a railways
administration order, are references to the person appointed to
achieve the purposes of the order and, where two or more
persons are so appointed, are to be construed as references to
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any one or more of them; and
(b)
the references to a firm of which a person was a member or
employee at a particular time include references to a firm which
holds itself out to be the successor of a firm of which he was a
member or employee at that time.
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(9)
If sums are paid out by the Scottish Ministers in respect of an indemnity
or guarantee under this section, the company in relation to which the
indemnity or guarantee was given must pay them—

Railways Bill
Part 5 — Further miscellaneous provisions
54

(a)
such amounts in or towards the repayment to them of those
sums as they may direct; and
(b)
interest, at such rates as they may direct, on amounts
outstanding under this subsection.
(10)
Payments to the Scottish Ministers under subsection (9) must be made
5
at such times and in such manner as they may determine.
(11)
Subsection (9) does not apply in the case of a sum paid by the Scottish
Ministers for indemnifying a person in respect of a liability to the
company in relation to which the railway administration order in
question was made.”
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Duties of co-operation
50
ORR to assist and advise national authorities
(1)
It shall be the duty of the Office of Rail Regulation to comply with every
reasonable requirement of the Secretary of State—
(a)
to provide him with information or advice about a matter connected
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with a function or other activity of his in relation to railways or railway
services; or
(b)
to provide him with information or advice about a matter relevant to
the railway safety purposes; or
(c)
otherwise to provide him with assistance in relation to a matter that is
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connected with such a function or activity or is relevant to those
purposes.
(2)
It shall be the duty of the Office of Rail Regulation to comply with every
reasonable requirement of the Scottish Ministers—
(a)
to provide them with information or advice about a matter connected
25
with a function or other activity of theirs in relation to railways or
railway services; or
(b)
otherwise to provide them with assistance in relation to a matter that is
connected with such a function or activity.
(3)
It shall be the duty of the Office of Rail Regulation to comply with every
30
reasonable requirement of the National Assembly for Wales to provide the
Assembly with information or advice about a matter connected with a function
or other activity of the Assembly in relation to railways or railway services.
(4)
References in this section to the functions of a person in relation to railways or
railway services include references, in particular, to all that person’s functions
35
under Part 1 of the 1993 Act, Part 4 of the 2000 Act or this Act.
(5)
In this section “railway safety purposes” has the same meaning as in Schedule
3.
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Duty of Passenger Transport Executives to advise Secretary of State
(1)
It shall be the duty of a Passenger Transport Executive to comply with every
40
requirement of the Secretary of State to provide him with advice about a matter
connected with a function or other activity of his in relation to railways or
railway services.

Railways Bill
Part 6 — General and supplemental
55

(2)
A Passenger Transport Executive are not required to do anything under this
section to the extent that it would involve an unreasonable administrative
burden for the Executive.
(3)
In determining the extent to which anything would involve an unreasonable
administrative burden regard must be had (where relevant) to so much of
5
whatever else the Passenger Transport Executive are required to do under this
section as they have accepted does not involve such a burden.
(4)
References in this section to the functions of the Secretary of State in relation to
railways or railway services—
(a)
include references, in particular, to all his functions under Part 1 of the
10
1993 Act, Part 4 of the 2000 Act or this Act; but
(b)
do not include references to any functions of his so far as they are
exercisable, or fall to be performed, for or in connection with the
railway safety purposes (within the meaning of Schedule 3).
Part 6
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General and supplemental
General
52
Taxation
Schedule 10 (which makes taxation provision in relation to transfer schemes under
sections 1(2) and 12) has effect.
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53
Further amendments of the 1993 Act
(1)
In sections 118 and 119 of the 1993 Act (powers in emergency and security
powers etc.), at the end of subsection (11), in each case, insert “with ‘railway’
having its wider meaning for the purposes of this section.”
(2)
Schedule 11 (which makes further miscellaneous minor and consequential
25
amendments of the 1993 Act) has effect.
Supplemental
54
Expenses etc.
(1)
There shall be paid out of money provided by Parliament—
(a)
any expenditure incurred by the Secretary of State for or in connection with
30
the carrying out of any of his functions under this Act; and
(b)
any increase attributable to this Act in the sums which are payable out of
money so provided under any other Act.
(2)
Sums received by the Secretary of State by virtue of any of the following provisions of
this Act must be paid into the Consolidated Fund—
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(a)
section 6;
(b)
section 10(6);
(c)
section 13(3);
(d)
paragraph 7 of Schedule 5.