Greater London Authority Bill - continued        House of Lords
PART IV, TRANSPORT - continued
Local implementation plans - continued

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  CHAPTER II
  TRANSPORT FOR LONDON
Establishment.     139. - (1) There shall be a body corporate to be known as Transport for London.
 
      (2) Transport for London shall have the functions conferred or imposed on it by this Act, or made exercisable by it under this Act, and any reference in this Act to the functions of Transport for London includes a reference to any functions made exercisable by it under this Act.
 
      (3) Transport for London shall exercise its functions-
 
 
    (a) in accordance with such guidance or directions as may be issued to it by the Mayor under section 140(1) below,
 
    (b) for the purpose of facilitating the discharge by the Authority of the duties under section 126(1) and (2) above, and
 
    (c) for the purpose of securing or facilitating the implementation of the transport strategy.
      (4) Schedule 8 shall have effect with respect to Transport for London.
 
Directions etc by the Mayor.     140. - (1) The Mayor may issue to Transport for London-
 
 
    (a) guidance as to the manner in which it is to exercise its functions,
 
    (b) general directions as to the manner in which it is to exercise its functions, or
 
    (c) specific directions as to the exercise of its functions.
      (2) Directions issued by the Mayor under subsection (1)(c) above may include a direction not to exercise a power specified in the direction.
 
      (3) The guidance or directions which may be issued by the Mayor under subsection (1) above may include in particular guidance or directions as to the manner in which Transport for London-
 
 
    (a) is to perform any of its duties, or
 
    (b) is to conduct any legal proceedings.
      (4) Any guidance or directions issued under subsection (1) must be issued in writing and notified to such officer of Transport for London as it may from time to time nominate to the Mayor for the purpose.
 
General powers.     141. - (1) Transport for London may form, promote and assist, or join with any other person in forming, promoting and assisting, a company for the purpose of-
 
 
    (a) carrying on any activities which Transport for London has power to carry on, or
 
    (b) carrying on such activities together with activities which Transport for London does not have power to carry on.
      (2) Transport for London may enter into and carry out agreements with any person for the carrying on by that person, whether as agent for Transport for London or otherwise, of any activities which Transport for London has power to carry on (and, in particular, with respect to the provision or financing of any public passenger transport services which Transport for London has power to provide).
 
      (3) Transport for London may also enter into and carry out an agreement with any person for the carrying on by that person ("the contractor") of any activities which Transport for London does not have power to carry on if the agreement includes provision for one or more of the following, namely-
 
 
    (a) the carrying on by the contractor of such activities as are mentioned in subsection (2) above;
 
    (b) the provision by the contractor to Transport for London of services ancillary to the provision of public passenger transport services; and
 
    (c) the use by the contractor of land or other property owned by Transport for London, or transferred to the contractor by Transport for London, for the purposes of the agreement.
      (4) Where an agreement has been entered into under subsection (2) or (3) above, the powers conferred on Transport for London by that subsection include power to enter into and carry out other agreements with other persons for the purpose of-
 
 
    (a) fulfilling any condition which must be fulfilled before the agreement can have effect; or
 
    (b) satisfying any requirement imposed by or under the agreement.
      (5) Where-
 
 
    (a) a company has been formed in the exercise of the powers conferred by subsection (1) above (whether by Transport for London alone or by Transport for London jointly with some other person); or
 
    (b) Transport for London has entered into an agreement with any person in exercise of its powers under subsection (2) or (3)(a) above;
  Transport for London may enter into arrangements with that company or person for the transfer from Transport for London to that company or person, in such manner and on such terms (including payments by any of the parties to the arrangements to any of the other parties) as may be provided for by the arrangements, of any property, rights or liabilities of Transport for London relevant to the purpose for which the company was formed or (as the case may be) to the performance by that person of his obligations under the agreement.
 
      (6) Without prejudice to section 151(1) or 154 below, Transport for London shall have power to enter into and carry out agreements with-
 
 
    (a) any of its subsidiaries; or
 
    (b) any person with whom it has entered into an agreement by virtue of subsection (2) or (3) above,
  providing for Transport for London to give assistance to the other party to the agreement by making available to that party any services, amenities or facilities provided by, or any works or land or other property belonging to, Transport for London, on such terms (including the reciprocal provision by that other party of similar assistance for Transport for London) as may be agreed between them.
 
      (7) The power of Transport for London under subsection (2) or (3)(a) above to enter into an agreement as there mentioned is exercisable notwithstanding that the agreement involves the delegation of the functions of Transport for London under any enactment relating to any part of its undertaking.
 
      (8) Schedule 9 to this Act shall have effect for conferring further powers on Transport for London for the purpose of the discharge by Transport for London of any of its functions and with respect to the other matters there mentioned.
 
Power of Mayor to transfer functions.     142. - (1) For the purpose of enabling any person to carry on any activities for which provision is made by an agreement under section 141(2) or (3) above, the Mayor may by order provide for any functions of Transport for London under any statutory provision to be exercisable by that person (whether to the exclusion of or concurrently with Transport for London).
 
      (2) An order under this section may-
 
 
    (a) provide for the functions to cease to be so exercisable when the activities cease to be carried on by that person (whether by reason of the expiry or termination of the agreement or otherwise); and
 
    (b) make such supplementary, incidental and consequential provision as the Mayor considers expedient.
      (3) The power of the Mayor to make an order under this section includes a power exercisable by order to revoke, amend or re-enact any such order.
 
      (4) An order made by the Mayor under this section shall not have effect unless and until it is confirmed by an order made by the Secretary of State.
 
      (5) This section does not apply to any function of Transport for London under this Act or any other statutory provision specifically amended by any provision of this Act.
 
      (6) Any reference in this section to Transport for London includes a reference to a subsidiary of Transport for London.
 
Financial assistance.     143. - (1) Transport for London may give financial assistance to any body or person in respect of expenditure incurred or to be incurred by that body or person in doing anything which in the opinion of Transport for London is conducive to the provision of safe, integrated, efficient and economic transport facilities or services to, from or within Greater London.
 
      (2) Financial assistance may be given under this section by way of grant, loan or other payment.
 
      (3) The financial assistance that may be given to any London authority under this section includes in particular assistance in respect of any expenditure incurred or to be incurred by the authority in discharging any function of a highway authority or traffic authority.
 
      (4) In deciding whether to give financial assistance to a London authority under this section, and if so the amount or nature of any such assistance, the matters to which Transport for London may have regard include-
 
 
    (a) any financial assistance or financial authorisation previously given to the authority by any body or person, and
 
    (b) the use made by the authority of such assistance or authorisation.
      (5) In subsection (4) above, "financial authorisation" means authorisation allowing the authority to incur financial obligations.
 
      (6) Financial assistance under this section may be given subject to such conditions as Transport for London considers appropriate, including (in the case of a grant) conditions for repayment in whole or in part in specified circumstances.
 
      (7) In this section-
 
 
    "highway authority" has the same meaning as in the Highways Act 1980 (see in particular sections 1 to 9 of that Act);
 
    "London authority" means any London borough council or the Common Council; and
 
    "traffic authority" has the same meaning as in the Road Traffic Regulation Act 1984 (see sections 121A and 142(1) of that Act).
      (8) In section 88(2) of the Local Government Finance Act 1988 (list of "defined councils" to which transport grants are payable by the Secretary of State under section 87 of that Act)-
 
 
    (a) at the end of paragraph (aa) there shall be inserted "and"; and
 
    (b) paragraphs (c) and (d) (which include in the list of "defined councils" the London borough councils and the Common Council) shall cease to have effect.
      (9) This section is without prejudice to any other power of Transport for London.
 
Guarantees.     144. - (1) Transport for London may guarantee to discharge any financial obligation of-
 
 
    (a) a subsidiary of Transport for London; or
 
    (b) any person (other than such a subsidiary) with whom Transport for London has entered into an agreement by virtue of section 141(2) or (3) above, where the guarantee is given for the purpose of enabling that person to carry out the agreement.
      (2) Transport for London may, for the purposes of discharging any of its functions, guarantee to discharge any financial obligation incurred or to be incurred by any person for the purposes of-
 
 
    (a) an undertaking carried on by him; or
 
    (b) where the person is a body corporate, an undertaking carried on by a subsidiary of that body corporate.
      (3) A guarantee under this section may be subject to such conditions as Transport for London considers appropriate.
 
      (4) Transport for London may enter into arrangements with another person under which that person gives a guarantee which Transport for London has power to give under this section.
 
      (5) Where Transport for London enters into arrangements by virtue of subsection (4) above, the arrangements may provide for Transport for London to indemnify the person who gives the guarantee.
 
      (6) This section is without prejudice to any other power of Transport for London.
 
 
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Prepared 30 July 1999