(1)The Secretary of State may by order grant exemption from designation under section 23(1) above in respect of such services for the carriage of passengers by railway as may be specified in the order, but subject to compliance with such conditions (if any) as may be so specified.
(2)A franchise exemption under subsection (1) above may be granted—
(a)to persons of a particular class or description or to a particular person; and
(b)in respect of services generally, services of a particular class or description or a particular service, or in respect of part only of any such services or service;
and a franchise exemption granted to persons of a particular class or description shall be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of that class or description.
(3)If a person who provides, or who proposes to introduce, services for the carriage of passengers by railway makes an application to the Secretary of State under this subsection for the grant of an exemption from designation under section 23(1) above in respect of any such service which he provides or proposes to introduce, the Secretary of State, after consultation with the Regulator and the Franchising Director—
(a)may either grant or refuse the exemption, whether wholly or to such extent as he may specify in the exemption; and
(b)if and to the extent that he grants it, may do so subject to compliance with such conditions (if any) as he may so specify.
(4)Before granting a franchise exemption under subsection (3) above, the Secretary of State shall give notice—
(a)stating that he proposes to grant the franchise exemption,
(b)stating the reasons why he proposes to grant the franchise exemption, and
(c)specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed franchise exemption may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(5)A notice under subsection (4) above shall be given by publishing the notice in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the franchise exemption.
(6)If any condition (the “broken condition”) of a franchise exemption is not complied with, the Secretary of State may give to any relevant person a direction declaring that the franchise 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.
(7)For the purposes of subsection (6) above—
“condition”, in relation to a franchise exemption, means any condition subject to compliance with which the franchise exemption was granted;
“relevant person”, in the case of any franchise exemption, means a person who has the benefit of the franchise exemption and who—
is a person who failed to comply with the broken condition or with respect to whom the broken condition is not complied with; or
provides any of the services in relation to which the broken condition is not complied with.
(8)Subject to subsection (6) above, a franchise exemption, unless previously revoked in accordance with any term contained in the franchise exemption, shall continue in force for such period as may be specified in, or determined by or under, the franchise exemption.
(9)Any application for a franchise exemption under subsection (3) above must be made in writing; and where any such application is made, the Secretary of State may require the applicant to furnish him with such information as the Secretary of State may consider necessary to enable him to decide whether to grant or refuse the franchise exemption.
(10)Any franchise exemption granted under subsection (3) above shall be in writing.
(11)Subsections (1) and (3) above apply in relation to the grant of a franchise exemption whether it is to become effective on, or after, the day on which section 23(1) above comes into force.
(12)Franchise exemptions may make different provision for different cases.
(13)In this Part, “franchise exemption” means an exemption from designation under section 23(1) above granted under any provision of this section in respect of any service for the carriage of passengers by railway.