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Lord Whitty: I thank my noble friend Lord Berkeley for drawing attention to that point. His amendment would enable TfL to purchase or lease land for the purpose of securing freight related intermodal facilities adjacent to rail or waterways or where there is a strategic need.

Schedule 9 already contains a number of powers for TfL in respect of the provision of transport facilities and the acquisition and development of land. However, we need to consider carefully whether those powers extend to the sort of cases envisaged in my noble friend's amendment and in the speech he has just made. With

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the leave of the Committee and the understanding of my noble friend, perhaps I may be able to consider this issue and return to it at a later stage.

Lord Berkeley: I am grateful to my noble friend for his comments. I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

The Deputy Chairman of Committees: Before calling Amendment No. 258Z I must inform the House that if that amendment is agreed to, I cannot call Amendment No. 259 which stands in the name of the noble Lord, Lord Brabazon of Tara.

Lord Whitty moved Amendments Nos. 258P to 258Z:

Page 213, line 40, leave out ("its business") and insert ("discharging any of its functions")
Page 213, line 42, leave out ("Transport for London's business") and insert ("discharging any of its functions")
Page 213, line 46, leave out ("its business") and insert ("discharging any of its functions")
Page 213, line 49, leave out ("for the purposes of its business")
Page 214, line 8, leave out from ("which") to the end of line 9 and insert ("is required by Transport for London or a subsidiary of Transport for London for the purposes of the discharge of any function.")
Page 214, line 11, at end insert--
("( ) Transport for London shall not by virtue of sub-paragraph (1) above submit to the Secretary of State a compulsory purchase order authorising the acquisition of any land in accordance with section 2(2) of the Acquisition of Land Act 1981 unless the Mayor has given his consent.")
Page 214, line 13, leave out from ("treated") to end of line 14 and insert ("for the purposes of sub-paragraph (1) above as the discharge by Transport for London of any of its functions")
Page 214, line 17, leave out ("17(2) or (3)") and insert ("17(3) or (4)")
Page 215, line 20, leave out ("its business") and insert ("discharging any of its functions")
Page 215, line 22, leave out ("its business") and insert ("discharging any of its functions")
Page 215, line 22, leave out (", with the consent of the Secretary of State,")

On Question, amendments agreed to.

[Amendment No. 259 not moved.]

Lord Whitty moved Amendments Nos. 259A to 259C:

Page 216, line 19, leave out ("proper carrying on of its business; or to secure") and insert ("discharge by it of any of its functions, including the securing of")
Page 216, line 20, leave out ("section 136(3) or (4)") and insert ("section 136")
Page 216, line 23, after (" 233") insert ("or 324")

On Question, amendments agreed to.

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Lord Brabazon of Tara: Paragraph 2(1) of Schedule 9 states:

    "Transport for London may enter into arrangements with any person providing passenger transport services by air for the provision of such services between places in Greater London or between such places and places outside Greater London".

Can the Minister enlighten me and the Committee as to what kind of services by air Transport for London might consider arranging within the London area? It seems a fairly remote possibility.

Lord Whitty: Perhaps I may write to the noble Lord in detail. I assume that this covers helicopters and other forms of air travel within London or between London and the London airports and the possibility of TfL entering into partnerships to gain intermodal transfer with those means of transport. However, if it is significantly wider than that, I shall inform the noble Lord.

Lord Berkeley: I believe it to be a good idea for air to be included in this schedule. As the Committee will be aware, the noble Lord, Lord Brabazon, has tabled an amendment to exclude noise from the air from the environmental study. It is good that air transport is included in the schedule, whether it be helicopters, fixed-wing planes, or whatever.

Schedule 9 agreed to.

Lord Whitty moved Amendment No. 259D:

Before Clause 137, insert the following new clause--


(" .--(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).

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(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.")

The noble Lord said: These amendments would give Transport for London the power to make grants to other bodies and persons, and the power to provide and to procure guarantees. They extend the power to procure guarantees to London Regional Transport.

Amendment No. 259D allows TfL to pay money from GLA transport grant for transport purposes to other bodies. These include those who would previously have received direct grants from the Secretary of State, such as the borough councils. It will also allow TfL to pay grants to voluntary organisations to provide transport services to meet the needs of disabled people resident in London; for example, as we discussed earlier this evening, Dial-a-Ride. It repeals the power by which the Secretary of State currently makes grants to the boroughs under TPP, because the equivalent funding for boroughs will in future come via Transport for London.

I know that there has been some concern that because GLA transport grant is paid to TfL the boroughs will lose out. There may also be some concern that TfL, a non-elected body, is allocating grants to the boroughs. I do not believe that this should cause such concern. The mayor will have wide-ranging powers of direction over TfL. I would expect the mayor to make arrangements for TfL to submit its proposals for the making of grants to him or her for approval, thus ensuring that the mayor's democratic mandate is given oversight of the process. Amendment No. 259H provides for the amount and recipients of grants to be included in TfL's published annual report, thus ensuring transparency.

At present, if a council fails to spend up to its estimate on the basis of which grant was assessed and paid, the Secretary of State can reduce the grant in ensuing years to make allowance for the overpayment. For example, some boroughs have had large amounts of TPP support for projects whose scope was subsequently reduced. Subsections (4) and (5) enable Transport for London to make similar adjustments.

Amendment No. 259E gives TfL the power to give guarantees to its subsidiaries or to any person with which it has an agreement under Section 136(3) or (4) of the Bill. London Transport has such powers to give guarantees. The amendment extends this power to allow TfL to procure guarantees from a third party, for example from a bank or insurance company, and to indemnify the person who gives the guarantee.

Amendment No. 265AA gives London Regional Transport the same powers as TfL with regard to procuring guarantees. Amendment No. 259H would

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require TfL to include in its published annual report details of any guarantees or indemnities as well as grants that have been given. I beg to move.

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