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Transport Act 2000

Status:

This is the original version (as it was originally enacted).

SCHEDULES

Section 30.

SCHEDULE 1Air traffic administration orders: general

Part IModifications of 1986 Act

Introduction

1This Part of this Schedule applies if an air traffic administration order is made.

General application of provisions of 1986 Act

2Sections 11 to 23 and 27 of the 1986 Act (which relate to administration orders under Part II of that Act) apply with the modifications specified in this Part of this Schedule.

General modifications

3In those sections as applied by this Part of this Schedule—

(a)references to an administration order are to an air traffic administration order, and

(b)references to an administrator are to an air traffic administrator.

Effect of order

4In section 11 of the 1986 Act (effect of order) as applied by this Part of this Schedule—

(a)the requirement in subsection (1)(a) that any petition for the winding up of the company shall be dismissed does not prejudice the air traffic administration order if it is made by virtue of section 27 above,

(b)the reference in subsection (3)(d) to proceedings includes a reference to any proceedings under or for the purposes of section 20 above, and

(c)subsection (3)(d) has effect as if after “its property” there were inserted “, and no right of re-entry or forfeiture may be enforced against the company in respect of any land,”.

Appointment of air traffic administrator

5In section 13 of the 1986 Act (appointment of administrator) as applied by this Part of this Schedule for subsection (3) substitute—

(3)An application for an order under subsection (2) may be made—

(a)by the Secretary of State,

(b)by the CAA with the Secretary of State’s consent,

(c)by any continuing air traffic administrator of the company, or

(d)where there is no such air traffic administrator, by the company, the directors or any creditor or creditors of the company.

General powers of air traffic administrator

6(1)Section 14 of the 1986 Act (general powers of administrator) as applied by this Part of this Schedule has effect as follows.

(2)In subsection (1)(b) the reference to the powers specified in Schedule 1 to the 1986 Act includes a reference to a power to act on behalf of the company—

(a)for the purposes of this Part, or

(b)for the purposes of the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding a licence.

(3)In subsection (4) the reference to a power conferred by the company’s memorandum or articles of association includes a reference to a power conferred by virtue of the company’s holding a licence.

Power to deal with charged property

7(1)Section 15 of the 1986 Act (power to deal with charged property) as applied by this Part of this Schedule has effect as follows.

(2)In subsection (2) for “the purpose or one or more of the purposes specified in the administration order” substitute “one or both of the purposes of the administration order”.

(3)In subsection (5)(b) for “in the open market by a willing vendor” substitute “for the best price which is reasonably available on a sale which is consistent with the purposes of the air traffic administration order”.

Duties of air traffic administrator

8(1)Section 17 of the 1986 Act (duties of administrator) as applied by this Part of this Schedule has effect as follows.

(2)For subsection (2) substitute—

(2)Subject to any directions of the court, it shall be the duty of the air traffic administrator to manage the affairs, business and property of the company in accordance with proposals under section 23 as they are revised from time to time.

(3)In subsection (3) omit paragraph (a).

Discharge of order

9(1)Section 18 of the 1986 Act (discharge and variation of administration order) as applied by this Part of this Schedule has effect as follows.

(2)For subsections (1) and (2) substitute—

(1)An application for an air traffic administration order to be discharged may be made—

(a)by the air traffic administrator, on the ground that the purposes of the order have been achieved; or

(b)by the Secretary of State or (with his consent) by the CAA, on the ground that it is no longer necessary that those purposes are achieved.

(3)In subsection (3) omit the words “or vary”.

(4)In subsection (4)—

(a)omit the words “or varied” and “or variation”, and

(b)after “to the registrar of companies” insert “, to the CAA and to the Secretary of State”.

Notice of making of order

10In section 21(2) of the 1986 Act (notice of order to be given by administrator) as applied by this Part of this Schedule after “to the registrar of companies” insert “, to the CAA, to the Secretary of State”.

Statement of proposals

11In section 23 of the 1986 Act (statement of proposals) as applied by this Part of this Schedule for subsections (1) and (2) substitute—

(1)Where an air traffic administration order has been made, the air traffic administrator shall, within 3 months (or such longer period as the court may allow) after the making of the order, send a statement of his proposals for achieving the purposes of the order—

(a)to the Secretary of State,

(b)to the CAA,

(c)to all creditors of the company (so far as he is aware of their addresses), and

(d)to the registrar of companies.

(2)The air traffic administrator may from time to time revise those proposals.

(2A)If the air traffic administrator proposes to make revisions which appear to him to be substantial, he shall before making them send a statement of the proposed revisions—

(a)to the Secretary of State,

(b)to the CAA,

(c)to all creditors of the company (so far as he is aware of their addresses), and

(d)to the registrar of companies.

(2B)The air traffic administrator shall give a copy of any statement under subsection (1) or (2A) to all members of the company before the end of the period described in subsection (1) or, as the case may be, before making the revisions.

(2C)The requirement in subsection (2B) is satisfied if the administrator—

(a)sends a copy of the statement to all members of the company (so far as he is aware of their addresses), or

(b)publishes in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge.

Applications to court

12(1)Section 27 of the 1986 Act (protection of interests of creditors and members) as applied by this Part of this Schedule has effect as follows.

(2)After subsection (1) insert—

(1A)If a creditor or member of the company makes an application under subsection (1), the court shall give notice of the application to the Secretary of State, who shall be entitled to be heard by the court in connection with the application.

(1B)At any time when an air traffic administration order is in force the Secretary of State or (with his consent) the CAA may apply to the court by petition for an order under this section on one or both of the following grounds.

(1C)The first ground is that the air traffic administrator has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which will not best ensure the achievement of the purposes of the order.

(1D)The second ground is that he has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which involves a contravention of—

(a)a condition of the licence granted under Chapter I of Part I of the Transport Act 2000, or

(b)a duty imposed by section 8(1) of that Act, or

(c)any other requirement imposed on the company by virtue of its holding the licence.

(3)Omit subsection (3).

(4)In subsection (4) omit the words “Subject as above”.

(5)After that subsection insert—

(4A)Provision may be made by virtue of subsection (4)(d) that the air traffic administration order is to be discharged from such date as may be specified in the order unless, before that date, such measures are taken as the court thinks fit for the purpose of protecting the interests of creditors.

(6)For subsection (6) substitute—

(6)Where an air traffic administration order is discharged, the air traffic administrator shall within 14 days after the date on which the discharge takes effect send an office copy of the order under this section—

(a)to the Secretary of State,

(b)to the CAA, and

(c)to the registrar of companies;

and if, without reasonable excuse, the air traffic administrator fails to comply with this subsection, he is liable to a fine and, for continued contravention, to a daily default fine.

Part IIOther provisions

General adaptations

13(1)References in the 1986 Act (except in sections 8 to 10 and 24 to 26), or in any other enactment passed before the day on which this Act is passed, to an administration order under Part II of that Act, to an application for such an order and to an administrator include references (respectively) to an air traffic administration order, to an application for an air traffic administration order and to an air traffic administrator.

(2)References in the 1986 Act, or in any other enactment passed before the day on which this Act is passed, to an enactment contained in Part II of that Act include references to that enactment as applied by section 30 above or Part I of this Schedule.

(3)But—

(a)sub-paragraph (1) applies in relation to a reference in an enactment contained in Part II of the 1986 Act only so far as necessary for the purposes of the operation of the provisions of that Part as so applied;

(b)sub-paragraphs (1) and (2) apply subject to Part I of this Schedule.

Saving

14The provisions of this Schedule are without prejudice to the power conferred by section 411 of the 1986 Act (company insolvency rules) as modified by paragraph 13(1) and (2).

Interpretation

15(1)In this Schedule “the 1986 Act” means the Insolvency Act 1986.

(2)For the purposes of this Schedule and any modification of the 1986 Act made by this Schedule—

(a)an air traffic administration order is an order made under section 27 or 28 above;

(b)an air traffic administrator is a person appointed by the court to achieve the purposes of an air traffic administration order;

(c)the CAA is the Civil Aviation Authority.

Section 30.

SCHEDULE 2Air traffic administration orders: schemes

Application of Schedule

1This Schedule applies if—

(a)the court has made an air traffic administration order in relation to a licence company (the existing licence company), and

(b)it is proposed that on and after the appointed day another company (the new licence company) should carry out licensed activities in respect of all or part of a licensed area.

Interpretation

2For the purposes of this Schedule—

(a)an air traffic administration order is an order made under section 27 or 28;

(b)an air traffic administrator is a person appointed by the court to achieve the purposes of an air traffic administration order;

(c)the court is the court which (but for section 27) would have jurisdiction to wind up the existing licence company;

(d)references to the existing licence company and the new licence company must be construed in accordance with paragraph 1;

(e)references to a licence company are to be construed in accordance with section 26;

(f)other licence companies are licence companies, other than the existing licence company and the new licence company;

(g)licensed activities are activities which the licence concerned authorises the existing licence company to carry out;

(h)a licensed area is an area in respect of which the licence concerned authorises the existing licence company to provide air traffic services;

(i)the appointed day is a day which falls before the discharge of the air traffic administration order takes effect and which is appointed by the court for the purposes of this Schedule.

Making and modification of schemes

3(1)The existing licence company, acting with the consent of the new licence company and, in relation to the matters affecting them, of any other licence companies, may make a scheme designed to secure that the new licence company carries out licensed activities in respect of all or part of the licensed area.

(2)No scheme takes effect unless it is approved by the Secretary of State after consulting the CAA.

(3)If a scheme is submitted to the Secretary of State for approval he may modify the scheme before approving it.

(4)But no modification may be made unless the following consent—

(a)the new licence company,

(b)the existing licence company, and

(c)in relation to the matters affecting them, any other licence companies.

(5)A scheme comes into force on the appointed day.

(6)At any time after a scheme has come into force, if he thinks it appropriate the Secretary of State may by order provide that the scheme is to be taken for all purposes to have come into force with the modifications specified in the order.

(7)But the Secretary of State may not make an order under sub-paragraph (6) unless the following consent—

(a)the existing licence company,

(b)the new licence company, and

(c)in relation to the provisions of the order which affect them, any other licence companies.

(8)An order under sub-paragraph (6)—

(a)may make, with effect from the coming into force of the scheme to which it relates, any such provision as could have been made by the scheme, and

(b)in connection with giving effect to that provision from that time, may make such supplementary, consequential and transitional provision as the Secretary of State thinks appropriate.

Effect on licence

4(1)A scheme may provide for a licence held by the existing licence company to have effect, with such modifications as the scheme may specify, as if the licence had been granted to the new licence company.

(2)If different schemes are made in relation to different parts of the licensed area—

(a)each scheme has effect as if there were a separate licence in respect of each part, and

(b)each licence has effect as if it had been granted to the company which is the new licence company under the scheme concerned.

Property, rights and liabilities

5A scheme may provide for the transfer of property, rights and liabilities from the existing licence company to the new licence company.

6(1)In determining whether and in what manner to exercise the powers under paragraph 3 to approve and modify a scheme, the Secretary of State must have regard to the need to ensure that a scheme allocates property, rights and liabilities to the new licence company in such manner as appears to the Secretary of State to be appropriate.

(2)In deciding what is appropriate the Secretary of State must take into account the licensed activities which will be carried out on or after the appointed day by any of—

(a)the new licence company,

(b)the existing licence company, and

(c)any other licence companies.

7(1)When a scheme comes into force, it has effect without more so as to transfer to the new licence company the property, rights and liabilities to which the scheme relates.

(2)A scheme may divide the property, rights or liabilities of the existing licence company and in connection with that division may—

(a)create for the existing licence company, the new licence company or any other licence companies an interest in or right over any property to which the scheme relates;

(b)create new rights and liabilities as between any two or more of those companies with respect to the subject-matter of the scheme;

(c)in connection with any provision made by virtue of paragraph (a) or (b), make incidental provision as to the interests, rights and liabilities of other persons with respect to the subject-matter of the scheme.

(3)A scheme may impose duties on the existing licence company, the new licence company and any other licence company to take all such steps as may be necessary to secure that—

(a)any interest, right or liability created by virtue of paragraph (a) or (b) of sub-paragraph (2), and

(b)any incidental provision made by virtue of paragraph (c) of that sub-paragraph,

has effect.

(4)A scheme may require the new licence company and any other licence companies to provide consideration in respect of the transfer or creation of property, rights and liabilities by means of the scheme.

(5)A requirement imposed under sub-paragraph (4) is enforceable in the same way as if the property, rights and liabilities had been created or transferred, and (if the case so requires) had been capable of being created or transferred, by agreement between the parties.

(6)The property, rights and liabilities of the existing licence company which may be transferred in accordance with a scheme include—

(a)property, rights and liabilities which the existing licence company would not otherwise be capable of transferring or assigning;

(b)property, rights and liabilities to which the existing licence company may become entitled or subject after the making of the scheme and before the appointed day;

(c)property situated anywhere in the United Kingdom or elsewhere;

(d)rights and liabilities under enactments;

(e)rights and liabilities under the law of any part of the United Kingdom or of any country or territory outside the United Kingdom.

(7)If a scheme makes a person entitled to possession of a document, the provision that may be made by virtue of sub-paragraph (2)(b) includes—

(a)provision for treating that person as having given another person an acknowledgement in writing of the right of that other person to the production of the document and to delivery of copies of it,

(b)provision applying section 64 of the [1925 c. 20.] Law of Property Act 1925 (production and safe custody of documents) to that acknowledgement,

(c)provision that, where a scheme transfers any interest in land or other property situated in Scotland, subsections (1) and (2) of section 16 of the [1979 c. 33.] Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) are to have effect in relation to the transfer as if the transfer had been effected by deed and as if from each of those subsections the words “unless specially qualified” had been omitted, and

(d)provision applying section 9 of the [1881 c. 41.] Conveyancing Act 1881 (which is the equivalent in Northern Ireland to section 64 of the [1925 c. 20.] Law of Property Act 1925) to that acknowledgement.

(8)Sub-paragraph (9) applies if a transfer authorised by sub-paragraph (6)(a) would (were it not so authorised)—

(a)give rise to a contravention or liability by reason of a provision relating to the terms on which the existing licence company is entitled or subject to the property, right or liability transferred, or

(b)give rise to an interference with any interest or right by reason of such a provision.

(9)In such a case the transfer does not give rise to such a contravention, liability or interference.

(10)The provision referred to in sub-paragraph (8) may arise under an enactment or agreement or otherwise.

8(1)A scheme may impose duties on the existing licence company and on the new licence company to take all such steps as may be necessary to secure that the vesting in the new licence company, by virtue of the scheme, of any foreign property, right or liability is effective under the relevant foreign law.

(2)A scheme may require the existing licence company to comply with any directions given by the new licence company in performing any duty imposed on the existing licence company by virtue of a provision included in the scheme under sub-paragraph (1).

(3)A scheme may provide that, until the vesting of any foreign property, right or liability of the existing licence company in the new licence company is effective under the relevant foreign law, it is the duty of the existing licence company—

(a)to hold that property or right for the benefit of the new licence company, or

(b)to discharge that liability on behalf of the new licence company.

(4)A scheme may provide that in specified cases foreign property, rights or liabilities acquired or incurred by an existing licence company after the scheme comes into force are immediately to become property, rights or liabilities of the new licence company; and in relation to such property, rights or liabilities the scheme may make provision equivalent to that in sub-paragraphs (1) to (3).

(5)Nothing in any provision included in a scheme by virtue of this paragraph affects the law of any part of the United Kingdom as it applies to the vesting of any foreign property, right or liability in the new licence company by virtue of the scheme.

(6)References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have to be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(7)Any expenses incurred by an existing licence company in consequence of any provision included in a scheme by virtue of this paragraph must be met by the new licence company.

(8)Duties imposed on an existing licence company or a new licence company by virtue of this paragraph are enforceable in the same way as if they were imposed by a contract between the existing licence company and the new licence company.

Supplementary provisions of schemes

9(1)A scheme may contain supplementary, consequential and transitional provision for the purposes of, or in connection with, any provision of the scheme.

(2)In particular a scheme may provide—

(a)that for purposes connected with any transfers made in accordance with the scheme (including the transfer of rights and liabilities under an enactment) the new licence company is to be treated as the same person in law as the existing licence company;

(b)that (so far as may be necessary for the purposes of or in connection with any such transfers) agreements made, transactions effected and other things done by or in relation to the existing licence company are to be treated as made, effected or done by or in relation to the new licence company;

(c)that (so far as may be necessary for the purposes of or in connection with any such transfers) references in any agreement (whether or not in writing) or in any document to, or to any officer of, the existing licence company are to have effect with such modifications as the scheme may specify;

(d)that proceedings commenced by or against the existing licence company are to be continued by or against the new licence company;

(e)that contracts of employment with the existing licence company are not to terminate and that periods of employment with the existing licence company are to count for all purposes as periods of employment with the new licence company;

(f)that disputes about the effect of the scheme between the existing licence company and the new licence company, between either of them and any other licence company or between different companies which are other licence companies are to be referred to such arbitration as may be specified in or determined under the scheme;

(g)that determinations on such arbitrations are conclusive for all purposes;

(h)that certificates given jointly by two or more of the licence companies mentioned in paragraph (f) as to the effect of the scheme as between the licence companies giving the certificates are conclusive for all purposes.

Assistance

10(1)The new licence company, the existing licence company and any other licence companies which are likely to be affected by a scheme must provide the Secretary of State with all such information and other assistance as the Secretary of State may reasonably require for the purposes of, or in connection with, the exercise of any power conferred by paragraph 3.

(2)If a company without reasonable excuse fails to do anything required of it by sub-paragraph (1) it is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Effect of air traffic administration order

11While an air traffic administration order is in force in relation to an existing licence company anything which the company is permitted or required to do—

(a)by paragraph 3 or 10, or

(b)in consequence of any provision of a scheme,

is effective only if it is done on the company’s behalf by its air traffic administrator.

Section 33.

SCHEDULE 3Air traffic administration orders: Northern Ireland

1In their application to a licence company formed and registered under the [S.I. 1986/1032 (N.I. 6).] Companies (Northern Ireland) Order 1986, sections 26 to 32 and Schedules 1 and 2 have effect with the modifications made by this Schedule.

2(1)Section 26 is modified as follows.

(2)In subsection (2) for “Part II of the 1986 Act” substitute “Part III of the 1989 Order”.

(3)In subsection (5) for “Parts I to VII of the 1986 Act” substitute “Parts II to VII of the 1989 Order”.

(4)In subsection (6)—

(a)for “the 1986 Act” substitute “the 1989 Order”, and

(b)for “the [1986 c. 45.] Insolvency Act 1986” substitute “the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989”.

3(1)Section 28 is modified as follows.

(2)In subsection (3) for paragraph (a) substitute—

(a)the Secretary of State certifies that but for section 27 it would in his opinion be appropriate for the Department of Enterprise, Trade and Investment to petition for the company’s winding up under Article 104A of the 1989 Order (petition following inspectors' report etc), and.

(3)In subsection (3)(b) for “section 124A” substitute “Article 104A”.

(4)In subsection (6) for “section 123 of the 1986 Act” substitute “Article 103 of the 1989 Order”.

4In section 29(5) for “the 1986 Act” substitute “the 1989 Order”.

5(1)Section 30 is modified as follows.

(2)In subsection (2) for “Section 9(4) and (5) of the 1986 Act” substitute “Article 22(4) and (5) of the 1989 Order”.

(3)In subsection (3)—

(a)for “Section 10(1), (2), (4) and (5) of the 1986 Act” substitute “Article 23(1), (2) and (4) of the 1989 Order”;

(b)in paragraphs (a), (b), (c) and (d) for “subsection” substitute “paragraph”.

(4)In subsection (5)—

(a)for “section 411 of the 1986 Act” substitute “Article 359 of the 1989 Order”, and

(b)for “Parts I to VII of that Act” substitute “Parts II to VII of that Order”.

6For Schedule 1 substitute—

SCHEDULE 1Air traffic administration orders: general

Part IModifications of 1989 Order

Introduction

1This Part of this Schedule applies if an air traffic administration order is made in Northern Ireland.

General application of provisions of 1989 Order

2Articles 24 to 35 and 39 of the 1989 Order (which relate to administration orders under Part III of that Order) apply with the modifications specified in this Part of this Schedule.

General modifications

3In those Articles as applied by this Part of this Schedule—

(a)references to an administration order are to an air traffic administration order, and

(b)references to an administrator are to an air traffic administrator.

Effect of order

4In Article 24 of the 1989 Order (effect of order) as applied by this Part of this Schedule—

(a)the requirement in paragraph (1)(a) that any petition for the winding up of the company shall be dismissed does not prejudice the air traffic administration order if it is made by virtue of section 27 above,

(b)the reference in paragraph (3)(d) to proceedings includes a reference to any proceedings under or for the purposes of section 20 above, and

(c)paragraph (3)(d) has effect as if after “its property” there were inserted “, and no right of re-entry or forfeiture may be enforced against the company in respect of any land,”.

Appointment of air traffic administrator

5In Article 26 of the 1989 Order (appointment of administrator) as applied by this Part of this Schedule for paragraph (3) substitute—

(3)An application for an order under paragraph (2) may be made—

(a)by the Secretary of State,

(b)by the CAA with the Secretary of State’s consent,

(c)by any continuing air traffic administrator of the company, or

(d)where there is no such air traffic administrator, by the company, the directors or any creditor or creditors of the company.

General powers of air traffic administrator

6(1)Article 27 of the 1989 Order (general powers of administrator) as applied by this Part of this Schedule has effect as follows.

(2)In paragraph (1)(b) the reference to the powers specified in Schedule 1 to the 1989 Order includes a reference to a power to act on behalf of the company—

(a)for the purposes of this Part, or

(b)for the purposes of the exercise or performance of any power or duty which is conferred or imposed on the company by virtue of its holding a licence.

(3)In paragraph (4) the reference to a power conferred by the company’s memorandum or articles of association includes a reference to a power conferred by virtue of the company’s holding a licence.

Power to deal with charged property

7(1)Article 28 of the 1989 Order (power to deal with charged property) as applied by this Part of this Schedule has effect as follows.

(2)In paragraph (2) for “the purpose or one or more of the purposes specified in the administration order” substitute “one or both of the purposes of the administration order”.

(3)In paragraph (5)(b) for “in the open market by a willing vendor” substitute “for the best price which is reasonably available on a sale which is consistent with the purposes of the air traffic administration order”.

Duties of air traffic administrator

8(1)Article 29 of the 1989 Order (duties of administrator) as applied by this Part of this Schedule has effect as follows.

(2)For paragraph (2) substitute—

(2)Subject to any directions of the High Court, it shall be the duty of the air traffic administrator to manage the affairs, business and property of the company in accordance with proposals under Article 35 as they are revised from time to time.

(3)In paragraph (3) omit sub-paragraph (a).

Discharge of order

9(1)Article 30 of the 1989 Order (discharge and variation of administration order) as applied by this Part of this Schedule has effect as follows.

(2)For paragraphs (1) and (2) substitute—

(1)An application for an air traffic administration order to be discharged may be made—

(a)by the air traffic administrator, on the ground that the purposes of the order have been achieved; or

(b)by the Secretary of State or (with his consent) by the CAA, on the ground that it is no longer necessary that those purposes are achieved.

(3)In paragraph (3) omit the words “or vary”.

(4)In paragraph (4)—

(a)omit the words “or varied” and “or variation”, and

(b)after “to the registrar” insert “, to the CAA and to the Secretary of State”.

Notice of making of order

10In Article 33(2) of the 1989 Order (notice of order to be given by administrator) as applied by this Part of this Schedule after “to the registrar” insert “, to the CAA, to the Secretary of State”.

Statement of proposals

11In Article 35 of the 1989 Order (statement of proposals) as applied by this Part of this Schedule for paragraphs (1) and (2) substitute—

(1)Where an air traffic administration order has been made, the air traffic administrator shall, within 3 months (or such longer period as the High Court may allow) after the making of the order, send a statement of his proposals for achieving the purposes of the order—

(a)to the Secretary of State,

(b)to the CAA,

(c)to all creditors of the company (so far as he is aware of their addresses), and

(d)to the registrar.

(2)The air traffic administrator may from time to time revise those proposals.

(2A)If the air traffic administrator proposes to make revisions which appear to him to be substantial, he shall before making them send a statement of the proposed revisions—

(a)to the Secretary of State,

(b)to the CAA,

(c)to all creditors of the company (so far as he is aware of their addresses), and

(d)to the registrar.

(2B)The air traffic administrator shall give a copy of any statement under paragraph (1) or (2A) to all members of the company before the end of the period described in paragraph (1) or, as the case may be, before making the revisions.

(2C)The requirement in paragraph (2B) is satisfied if the administrator—

(a)sends a copy of the statement to all members of the company (so far as he is aware of their addresses), or

(b)publishes in the prescribed manner a notice stating an address to which members should write for copies of the statement to be sent to them free of charge.

Applications to court

12(1)Article 39 of the 1989 Order (protection of interests of creditors and members) as applied by this Part of this Schedule has effect as follows.

(2)After paragraph (1) insert—

(1A)If a creditor or member of the company makes an application under paragraph (1), the court shall give notice of the application to the Secretary of State, who shall be entitled to be heard by the court in connection with the application.

(1B)At any time when an air traffic administration order is in force the Secretary of State or (with his consent) the CAA may apply to the court by petition for an order under this Article on one or both of the following grounds.

(1C)The first ground is that the air traffic administrator has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which will not best ensure the achievement of the purposes of the order.

(1D)The second ground is that he has exercised or is exercising or proposing to exercise his powers in relation to the company in a manner which involves a contravention of—

(a)a condition of the licence granted under Chapter I of Part I of the Transport Act 2000, or

(b)a duty imposed by section 8(1) of that Act, or

(c)any other requirement imposed on the company by virtue of its holding the licence.

(3)Omit paragraph (3).

(4)In paragraph (4) omit the words “Subject to paragraph (3),”.

(5)After that paragraph insert—

(4A)Provision may be made by virtue of paragraph (4)(d) that the air traffic administration order is to be discharged from such date as may be specified in the order unless, before that date, such measures are taken as the court thinks fit for the purpose of protecting the interests of creditors.

(6)For paragraph (6) substitute—

(6)Where an air traffic administration order is discharged, the air traffic administrator shall within 14 days after the date on which the discharge takes effect send an office copy of the order under this Article—

(a)to the Secretary of State,

(b)to the CAA, and

(c)to the registrar;

and if, without reasonable excuse, the air traffic administrator contravenes this paragraph, he shall be guilty of an offence and, for continued contravention, he shall be guilty of a continuing offence.

Part IIOther provisions

General adaptations

13(1)References in the 1989 Order (except in Articles 21 to 23 and 36 to 38), or in any other enactment passed before the day on which this Act is passed, to an administration order under Part III of that Order, to an application for such an order and to an administrator include references (respectively) to an air traffic administration order, to an application for an air traffic administration order and to an air traffic administrator.

(2)References in the 1989 Order, or in any other enactment passed before the day on which this Act is passed, to an enactment contained in Part III of that Order include references to that enactment as applied by section 30 above or Part I of this Schedule.

(3)But—

(a)sub-paragraph (1) applies in relation to a reference in an enactment contained in Part III of the 1989 Order only so far as necessary for the purposes of the operation of the provisions of that Part as so applied;

(b)sub-paragraphs (1) and (2) apply subject to Part I of this Schedule.

Saving

14The provisions of this Schedule are without prejudice to the power conferred by Article 359 of the 1989 Order (insolvency rules) as modified by paragraph 13(1) and (2).

Interpretation

15(1)In this Schedule “the 1989 Order” means the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989.

(2)For the purposes of this Schedule and any modification of the 1989 Order made by this Schedule—

(a)an air traffic administration order is an order made under section 27 or 28 above;

(b)an air traffic administrator is a person appointed by the court to achieve the purposes of an air traffic administration order;

(c)the CAA is the Civil Aviation Authority.

Section 36.

SCHEDULE 4Licence holders: land

1The [1982 c. 16.] Civil Aviation Act 1982 shall be amended as follows.

2After section 42 (acquisition of land by CAA) insert the following—

42AAcquisition of land: air traffic services licence holders

(1)A licence holder may be authorised by the Secretary of State to acquire land in Great Britain compulsorily for any purpose connected with the carrying out of the activities authorised by the licence.

(2)Where a licence holder proposes to acquire, otherwise than by agreement, any land in Northern Ireland—

(a)which is required by the licence holder for any purpose connected with the carrying out of the activities authorised by the licence, or

(b)as to which it can reasonably be foreseen that it will be so required,

the licence holder may apply to the Secretary of State for an order vesting the land in it, and the Secretary of State shall have power to make such an order.

(3)The Secretary of State shall not grant an authorisation under subsection (1) or an order under subsection (2) to a licence holder in respect of land which is owned by another licence holder who—

(a)is using it, or

(b)will, in the opinion of the Secretary of State, use it at some time in the period of five years beginning with the date on which he receives the request for the authorisation or order.

(4)A reference in subsection (3) to use of land by a licence holder is a reference to use for a purpose connected with the carrying out of the activities authorised by the licence.

(5)The following provisions of section 42 shall apply for the purposes of this section in relation to a licence holder as they apply for the purposes of that section in relation to the CAA—

(a)in subsection (1), the words from “and the following enactments” to the end,

(b)subsection (3),

(c)subsection (5) (with the reference to acquisition for the purposes of the CAA’s undertaking being construed as a reference to acquisition in connection with the carrying out of the activities authorised by the licence), and

(d)subsection (6).

3In section 43(1) (rights over land to bind grantor’s successors) after paragraph (b) insert— or,

(c)for any purpose connected with the carrying out of the activities authorised by the licence, to a licence holder,.

4(1)Section 44 (power to obtain rights over land) shall be amended as follows.

(2)In subsection (6) after paragraph (b) insert— and

(c)if the relevant authority in whose favour the order was made is a licence holder, the licence holder,.

(3)For subsection (7) substitute—

(7)The ownership of anything shall not be affected by reason only that it is placed on or under, or affixed, to, any land in pursuance of any such order.

(7A)So long as any such order is in force, no person shall, except with the necessary consent, wilfully interfere—

(a)with any works carried out on any land in pursuance of the order, or

(b)with anything installed on, under, over or across any land in pursuance of the order.

(7B)The necessary consent is—

(a)if the relevant authority in whose favour the order is made is the Secretary of State or Eurocontrol, the consent of the Secretary of State,

(b)if that relevant authority is the CAA, the consent of the Secretary of State or the CAA, and

(c)if that relevant authority is a licence holder, the consent of the licence holder.

(4)In subsection (12) the following shall be inserted after paragraph (c)— and

(d)a licence holder;.

5In section 46(10) (control over land: relevant authorities) after paragraph (d) insert— and

(e)a licence holder (within the meaning of section 105(1) below);.

6(1)Section 48 (Secretary of State’s powers in respect of highways, &c.) shall be amended as follows.

(2)In subsection (1) for “or the CAA” substitute (in each place) “, the CAA or a licence holder”.

(3)In subsection (9) after “the CAA” insert (in each place) “or a licence holder”.

7In section 49 (acquisition of land for purpose related to highway) after subsection (3) insert—

(3A)A licence holder’s power of acquiring land compulsorily under this Act may be exercised for the purpose of providing or improving any highway which is to be provided or improved in pursuance of an order made under section 48(1) above in relation to land which is vested in the licence holder or which the licence holder proposes to acquire or for any other purpose for which land is required in connection with such an order.

8(1)Section 50 (powers of entry) shall be amended as follows.

(2)In subsection (1)(a), (b) and (c) after “the CAA” insert “or a licence holder”.

(3)In subsection (1)(d) after “the CAA” insert “, a licence holder (within the meaning of section 105(1) below)”.

(4)In subsection (3)(a), (b) and (c) for “or the CAA” substitute “, the CAA or a licence holder”.

(5)In subsection (7) for paragraph (a) substitute—

(a)in a case falling within subsection (1)(a) to (c) above in respect of the CAA, the CAA,

(aa)in a case falling within subsection (1)(a) to (c) above in respect of a licence holder, the licence holder,.

9In section 51(7)(a) (statutory undertakers) after “the CAA” insert “or a licence holder”.

10(1)Section 52 (displacements from land) shall be amended as follows.

(2)After subsection (1)(c) (and before the word “or”) insert—

(ca)a licence holder has acquired land for purposes connected with the carrying out of the activities authorised by the licence;.

(3)In subsection (2)(a) for “or (c)” substitute “, (c) or (ca)”.

(4)In subsection (3)(a) after “(c)” insert “, (ca)”.

11(1)Section 53 (planning decisions: compensation) shall be amended as follows.

(2)In subsection (1)—

(a)for “entitled to recover from the CAA” substitute “entitled to recover from the relevant person”,

(b)for paragraph (b)(iii) substitute—

(iii)to secure the safe and efficient operation of apparatus which is in the possession of a licence holder and is provided for the purpose of the activities authorised by the licence.

(3)In subsection (2) for “shall pay the CAA” substitute “shall refund to the person who paid that sum”.

(4)In subsection (3)—

(a)for “such a need as aforesaid in respect of an aerodrome or apparatus owned by the CAA,” substitute “a need referred to in subsection (1)(b)(i) to (iii),”,

(b)for “given to the CAA” substitute “given to the relevant person”, and

(c)for “require the CAA” substitute “require the relevant person”.

(5)In subsection (4) for “the CAA” substitute (in each place) “the relevant person”.

(6)In subsection (7) for paragraph (b) and the words following it substitute—

(b)the decision would not have been taken but for the need to secure the safe and efficient operation of apparatus which is in the possession of a licence holder and is provided for the purpose of the activities authorised by the licence,

the Department shall be entitled to recover from the licence holder a sum equal to that compensation.

(7)In subsection (8) for “the CAA” substitute “the licence holder”.

(8)After subsection (9) insert—

(10)The relevant person for the purposes of this section is—

(a)in a case to which subsection (1)(b)(i) or (ii) applies, the CAA, and

(b)in a case to which subsection (1)(b)(iii) applies, the licence holder.

12In section 54(2) (consecrated land and burial grounds) for “in relation to any land acquired by the CAA” substitute in relation to any land—

(a)acquired by the CAA, or

(b)acquired by a licence holder for purposes connected with the carrying out of the activities authorised by the licence,.

13(1)Section 55 (registration of orders, &c.) shall be amended as follows.

(2)In subsection (5) after “the CAA” insert “or a licence holder”.

(3)In subsection (7)(a) after sub-paragraph (ii) (and after the word “and”) insert—

(iii)if the order is made in favour of a licence holder, the licence holder; and.

(4)In subsection (7)(c) after sub-paragraph (i) (and before the word “and”) insert—

(ia)if the order is made in respect of a licence holder, the licence holder;.

14In section 105(1) (interpretation) after the definition of “the Lands Tribunal” insert—

“licence holder” means a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services);.

15In Schedule 6 (modifications of Schedule 6 to the [1972 c. 9 (N.I.).] Local Government Act (Northern Ireland) 1972)—

(a)in paragraph 2 after “Civil Aviation Authority” insert “or (as the case may be) the licence holder”,

(b)in paragraph 4 after “Civil Aviation Authority” insert “or a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (“a licence holder”)”, and

(c)in paragraphs 5 and 6 after “Civil Aviation Authority” (in each place) insert “or (as the case may be) the licence holder”.

16(1)Schedule 7 (certain orders under Part II: supplementary) shall be amended as follows.

(2)For the words “the CAA”—

(a)substitute “the CAA or a licence holder” in paragraph 1(1), in the first place where the words appear in paragraph 1(2), and in paragraph 12(2)(a), and

(b)substitute “the CAA or the licence holder” in the second place where the words appear in paragraph 1(2).

(3)After paragraph 5(2)(a) insert—

(aa)the licence holder in the case of an order under section 44 of this Act made in favour of a licence holder;.

(4)After paragraph 12(2)(b) insert—

(c)from the licence holder in the case of an order made in favour of a licence holder.

17In Schedule 13 (subordinate instruments), in Part I after the entry for section 42(2) insert—

  • Section 42A(2) (order vesting land in licence holder).

Section 37.

SCHEDULE 5Licence holders as statutory undertakers

Miscellaneous enactments

1(1)For the purposes of the provisions mentioned in sub-paragraph (2)—

(a)a licence holder carrying out activities authorised by its licence is to be taken to be a statutory undertaker;

(b)its undertaking as licence holder is to be taken to be a statutory undertaking.

(2)The provisions are—

(a)the [1947 c. 42.] Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947;

(b)section 4 of the [1948 c. 17.] Requisitioned Land and War Works Act 1948;

(c)the National Parks and Access to the [1949 c. 97.] Countryside Act 1949;

(d)the [1951 c. 65.] Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951;

(e)the [1954 c. 56.] Landlord and Tenant Act 1954;

(f)section 39(6)(b) of the [1958 c. 69.] Opencast Coal Act 1958;

(g)section 11 of the [1961 c. 33.] Land Compensation Act 1961;

(h)section 3(4) of the [1961 c. 41.] Flood Prevention (Scotland) Act 1961;

(i)section 18 of the [1963 c. 51.] Land Compensation (Scotland) Act 1963;

(j)Schedule 3 to the [1964 c. 40.] Harbours Act 1964;

(k)Schedule 6 to the [1965 c. 36.] Gas Act 1965;

(l)the [1968 c. 16.] New Towns (Scotland) Act 1968;

(m)paragraph 6 of Schedule 2 to the [1968 c. 41.] Countryside Act 1968;

(n)section 22 of the [1968 c. 47.] Sewerage (Scotland) Act 1968;

(o)sections 283, 296 and 611 of the [1985 c. 68.] Housing Act 1985.

Public health

2(1)The provisions mentioned in sub-paragraph (2) apply in relation to—

(a)a licence holder carrying out activities authorised by its licence, and

(b)any property which is owned by the licence holder,

as they apply in relation to a railway company and its railway.

(2)The provisions are—

(a)section 330 of the [1936 c. 49.] Public Health Act 1936 (power of certain undertakers in England and Wales to alter sewers);

(b)section 333 of that Act (protection of certain undertakings in England and Wales from works executed under that Act);

(c)section 107 of the [1897 c. 38.] Public Health (Scotland) Act 1897 (protection of certain undertakings in Scotland from works connected with sewers).

Civil defence

3(1)For the purposes of the [1939 c. 31.] Civil Defence Act 1939—

(a)a licence holder carrying out activities authorised by its licence is to be taken to be a public utility undertaker;

(b)its undertaking as licence holder is to be taken to be a public utility undertaking.

(2)For the purposes of the 1939 Act as it applies in relation to a licence holder the appropriate department is the Secretary of State.

Pipe-lines

4(1)For the purposes of the [1962 c. 58.] Pipe-lines Act 1962—

(a)a licence holder carrying out activities authorised by its licence is to be taken to be a statutory undertaker;

(b)its undertaking as licence holder is to be taken to be a statutory undertaking.

(2)For the purposes of section 13 of the 1962 Act, in relation to a licence holder operational land is land—

(a)which is used by the licence holder, or by a company associated with it, for the purpose of carrying out activities authorised by the licence, or

(b)in which the licence holder, or a company associated with it, holds an interest for that purpose.

(3)If for the purposes of section 13 of the 1962 Act a question arises whether land is operational land in relation to a licence holder the question must be decided by the Secretary of State.

New towns

5(1)Section 79 of the [1981 c. 64.] New Towns Act 1981 (meaning of statutory undertakers and operational land) shall be amended as follows.

(2)In subsection (1) after “the Civil Aviation Authority,” insert or

(ba)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services),.

(3)After subsection (1) insert—

(1A)For the purposes of this Act—

(a)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 shall not be considered to be a statutory undertaker unless the person is carrying out activities authorised by the licence;

(b)the person’s undertaking shall not be considered to be a statutory undertaking except to the extent that it is the person’s undertaking as licence holder.

(4)In subsection (3) after paragraph (b) insert—

(ba)in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000, means any land which is used by the licence holder (or by a company associated with it) for the purpose of carrying out activities authorised by the licence or land in which the licence holder (or a company associated with it) holds an interest for that purpose.

(5)After subsection (3) insert—

(4)If for the purposes of this Act a question arises whether land is operational land in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000 the question must be decided by the Secretary of State.

Planning

6(1)Section 262 of the [1990 c. 8.] Town and Country Planning Act 1990 (meaning of statutory undertakers) shall be amended as follows.

(2)In subsection (3) for “and the Civil Aviation Authority” substitute “, the Civil Aviation Authority and a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services)”.

(3)In subsection (5)(b) for “and the Civil Aviation Authority” substitute “, the Civil Aviation Authority and a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services)”.

(4)After subsection (5) insert—

(5A)For the purposes of this Act—

(a)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 shall not be considered to be a statutory undertaker unless the person is carrying out activities authorised by the licence;

(b)the person’s undertaking shall not be considered to be a statutory undertaking except to the extent that it is the person’s undertaking as licence holder.

7In section 263 of the [1990 c. 8.] Town and Country Planning Act 1990 (meaning of operational land) after subsection (2) insert—

(2A)Subsection (1) does not apply in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000.

(2B)Subject to section 264, in this Act “operational land” means, in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000, land—

(a)which is used by the licence holder, or by a company associated with it, for the purpose of carrying out activities authorised by the licence, or

(b)in which the licence holder, or a company associated with it, holds an interest for that purpose.

(2C)If for the purposes of this Act a question arises whether land is operational land in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000 the question must be decided by the Secretary of State.

8In section 91(3) of the [1990 c. 9.] Planning (Listed Buildings and Conservation Areas) Act 1990 (meaning of statutory undertakers) in paragraph (b) after “the Civil Aviation Authority,” there shall be inserted “a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (to the extent that the person is carrying out activities authorised by the licence),”.

9In section 39(6) of the [1990 c. 10.] Planning (Hazardous Substances) Act 1990 (persons deemed to be statutory undertakers) after “the Civil Aviation Authority” there shall be inserted “, a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (to the extent that the person is carrying out activities authorised by the licence)”.

10(1)Section 214 of the [1997 c. 8.] Town and Country Planning (Scotland) Act 1997 (meaning of statutory undertakers) shall be amended as follows.

(2)In subsection (3) for “and the Civil Aviation Authority” substitute “, the Civil Aviation Authority and a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services)”.

(3)In subsection (5)(b) for “and the Civil Aviation Authority” substitute “, the Civil Aviation Authority and a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services)”.

(4)After subsection (5) insert—

(5A)For the purposes of this Act—

(a)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 shall not be considered to be a statutory undertaker unless the person is carrying out activities authorised by the licence;

(b)the person’s undertaking shall not be considered to be a statutory undertaking except to the extent that it is the person’s undertaking as licence holder.

11In section 215 of the [1997 c. 8.] Town and Country Planning (Scotland) Act 1997 (meaning of operational land) after subsection (2) insert—

(2A)Subsection (1) does not apply in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000.

(2B)Subject to section 216, in this Act “operational land” means, in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000, land—

(a)which is used by the licence holder, or by a company associated with it, for the purpose of carrying out activities authorised by the licence, or

(b)in which the licence holder, or a company associated with it, holds an interest for that purpose.

(2C)If for the purposes of this Act a question arises whether land is operational land in relation to a person who holds a licence under Chapter I of Part I of the Transport Act 2000 the question must be decided by the Secretary of State.

12In section 81(3) of the [1997 c. 9.] Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997 (meaning of statutory undertakers) in paragraph (b) after “the Civil Aviation Authority,” there shall be inserted “a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (to the extent that the person is carrying out activities authorised by the licence),”.

13In section 38(5) of the [1997 c. 10.] Planning (Hazardous Substances) (Scotland) Act 1997 (persons deemed to be statutory undertakers) after “the Civil Aviation Authority” there shall be inserted “, a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (to the extent that the person is carrying out activities authorised by the licence)”.

Water and drainage

14In Schedule 13 to the [1991 c. 56.] Water Industry Act 1991 (protection of undertakings) in paragraph 1(5) after paragraph (j) there shall be inserted—

(k)the undertaking of a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services) to the extent that it is the person’s undertaking as licence holder.

15In Schedule 22 to the [1991 c. 57.] Water Resources Act 1991 (protection of undertakings) in paragraph 1(4) after paragraph (j) there shall be inserted—

(k)the undertaking of a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services) to the extent that it is the person’s undertaking as licence holder.

16In Schedule 6 to the [1991 c. 59.] Land Drainage Act 1991 (protection of undertakings) in paragraph 1(1) after paragraph (j) there shall be inserted—

(k)the undertaking of a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services) to the extent that it is the person’s undertaking as licence holder.

Development

17In section 161 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (vesting of undertakers' land by order etc) in the entry relating to statutory undertakers in subsection (7) after paragraph (b) there shall be inserted—

(ba)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services) to the extent that the person is carrying out activities authorised by the licence;.

18In section 19 of the [1998 c. 45.] Regional Development Agencies Act 1998 (vesting of undertakers' land by order etc) in the entry relating to statutory undertakers in subsection (10) after paragraph (c) there shall be inserted—

(ca)a person who holds a licence under Chapter I of Part I of the Transport Act 2000 (air traffic services) to the extent that the person is carrying out activities authorised by the licence,.

Coal mining subsidence

19In section 52(1) of the [1991 c. 45.] Coal Mining Subsidence Act 1991 (interpretation) in paragraph (b) of the entry relating to statutory undertakers after “the Civil Aviation Authority” there shall be inserted “, any person who holds a licence under Chapter I of Part I of the Transport Act 2000 (to the extent that the person is carrying out activities authorised by the licence)”.

Section 63.

SCHEDULE 6Transfer schemes

Allocation

1(1)Paragraphs 2 and 3 apply if the following two conditions are satisfied.

(2)The first condition is that—

(a)provision is made by a transfer scheme for the transfer to a transferee of a specified part of a transferor’s undertaking, or

(b)provision is made by a transfer scheme (or transfer schemes) for the transfer to different transferees of different specified parts of a transferor’s undertaking.

(3)The second condition is that any property, right or liability falls partly in one part of the undertaking and partly in another or others; and the parts of the undertaking are—

(a)the part (or each part) transferred, and

(b)if a part is retained by the transferor, that part.

(4)In paragraphs 2 and 3 references to the parties are to—

(a)the transferee or transferees concerned, and

(b)the transferor (if he retains part of the undertaking).

(5)Paragraphs 2 and 3 do not apply to rights or liabilities under a contract of employment.

2(1)If the nature of the property, right or liability permits, it must be apportioned in appropriate proportions between the parties; and each appropriate part must be taken to have been transferred to a transferee or retained by the transferor.

(2)If an estate or interest in land is to be apportioned under sub-paragraph (1)—

(a)any rent payable under a lease in respect of the estate or interest, and

(b)any rent charged on the estate or interest,

must be apportioned so that an appropriate part of the rent is payable in respect of (or charged on) the appropriate part of the estate or interest.

(3)Sub-paragraph (2) applies, with any necessary modifications, in relation to any feuduty payable in respect of an estate or interest in land in Scotland as it applies in relation to any rent charged on an estate or interest in land.

3(1)If the nature of the property, right or liability does not permit it to be apportioned as mentioned in paragraph 2(1), it must be taken to have been transferred to a transferee or retained by the transferor in accordance with the tests in sub-paragraphs (2) and (3).

(2)In the case of an estate or interest in land the test is—

(a)which one of the parties has the greater (or greatest) need of the estate or interest for business purposes, or

(b)if it is not possible to say that one of them has the greater (or greatest) need, which one of them is likely to make more (or the most) use of the land.

(3)In the case of any other property or any right or liability, the test is which one of the parties is likely—

(a)to make more (or the most) use of the property, or

(b)to be more (or the most) affected by the right or liability.

(4)The tests in sub-paragraphs (2) and (3) must be applied at—

(a)the time when the transfer scheme comes into force (or schemes come into force), or

(b)if there are two or more schemes and they come into force at different times, the later or latest of the times.

(5)The preceding provisions of this paragraph apply subject to any arrangements made by the parties as to the protection of the interests of any of them.

Identification

4(1)Paragraphs 5 to 7 apply if—

(a)provision is made by a transfer scheme for the transfer to a transferee of a specified part of a transferor’s undertaking, or

(b)provision is made by a transfer scheme (or transfer schemes) for the transfer to different transferees of different specified parts of a transferor’s undertaking.

(2)It is immaterial whether or not the second condition set out in paragraph 1 is satisfied.

(3)In paragraphs 5 to 7 references to the parties are to—

(a)the transferee or transferees concerned, and

(b)the transferor (if he retains part of the undertaking).

(4)Paragraphs 5 to 7 do not apply to rights or liabilities under a contract of employment.

5(1)The parties must, so far as practicable, make any written agreement necessary or expedient to identify what is to be taken to have been transferred to whom and what (if anything) is to be taken to have been retained.

(2)The duty under sub-paragraph (1) has effect before as well as after the coming into force of any transfer scheme concerned.

6(1)If the Secretary of State thinks it is unlikely that agreement will be reached on a matter where agreement is required under paragraph 5 he may serve a notice on the parties.

(2)A notice may be served—

(a)whether or not representations are made by a party;

(b)before or after the coming into force of any transfer scheme concerned.

(3)A notice may specify the terms of the agreement which the Secretary of State thinks the parties should have made under paragraph 5 in relation to the matter concerned.

(4)If a notice is served under this paragraph the parties are to be treated as having made an agreement in the terms specified.

7(1)This paragraph applies if—

(a)an agreement made under paragraph 5, or

(b)an agreement treated as made by paragraph 6,

contains provision to the effect that any property, right or liability is to be taken to have been transferred to a transferee.

(2)The property, right or liability is to be treated as having been transferred to the transferee by the scheme concerned (or, if there are two or more schemes, such of them as the agreement specifies).

Discharge of functions

8(1)Paragraphs 9 and 10 apply if—

(a)provision is made by a transfer scheme for the transfer to a transferee of a specified part of a transferor’s undertaking, or

(b)provision is made by a transfer scheme (or transfer schemes) for the transfer to different transferees of different specified parts of a transferor’s undertaking.

(2)It is immaterial whether or not the second condition set out in paragraph 1 is satisfied.

(3)In paragraphs 9 and 10 references to the parties are to—

(a)the transferee or transferees concerned, and

(b)the transferor (if he retains part of the undertaking).

(4)Paragraphs 9 and 10 do not apply to rights or liabilities under a contract of employment.

(5)Sub-paragraph (6) applies if at the time a transfer scheme comes into force a transferor or transferee under the scheme is—

(a)a company which is wholly owned by the Crown;

(b)a company which is wholly owned by the CAA;

(c)a company which is a wholly owned subsidiary of a company falling within paragraph (a) or (b).

(6)Paragraphs 9 and 10 cease to apply in relation to the scheme concerned at the time when the transferor or any one of the transferees under the scheme ceases to be a company which falls within any of paragraphs (a) to (c) of sub-paragraph (5).

9(1)The parties must, so far as practicable, make any written agreement and execute any other instrument necessary or expedient to—

(a)give to any party (as against another or others) any rights and safeguards needed for carrying out the party’s functions;

(b)modify the division of the transferor’s undertaking in order to help the parties in carrying out their functions.

(2)An agreement or instrument under sub-paragraph (1) may provide—

(a)for the granting of leases and for the creation of other rights and liabilities over land (whether or not amounting in law to interests in land and whether or not involving the surrender of any existing interest or the creation of a new interest);

(b)for the granting of indemnities in connection with the severance of leases and other matters;

(c)for responsibility for registration of any matter in any statutory register.

(3)The duty under sub-paragraph (1) has effect before as well as after the coming into force of any transfer scheme concerned.

10(1)If the Secretary of State thinks it is unlikely that agreement will be reached on a matter where agreement is required under paragraph 9 he may serve a notice on the parties.

(2)A notice may be served—

(a)whether or not representations are made by a party;

(b)before or after the coming into force of any transfer scheme concerned.

(3)A notice may specify the terms of the agreement which the Secretary of State thinks the parties should have made under paragraph 9 in relation to the matter concerned.

(4)If a notice is served under this paragraph the parties are to be treated as having made an agreement in the terms specified.

Transfers by agreement

11(1)If a transfer scheme provides for property, rights or liabilities to be transferred from a transferor to a transferee, they may agree that such of the property, rights or liabilities as are specified in the agreement are to be transferred from the transferee to the transferor.

(2)If one or more transfer schemes provide for different property, rights or liabilities to be transferred to different transferees, any transferee may agree with another that such of the property, rights or liabilities as are specified in the agreement are to be transferred from one to the other.

(3)This paragraph does not apply to rights or liabilities under a contract of employment.

(4)An agreement under this paragraph—

(a)must be in writing;

(b)must be made before the end of the required period;

(c)must be made with the Secretary of State’s approval.

(5)The required period is the period of 12 months starting with—

(a)the day on which the transfer scheme comes into force (or schemes come into force), or

(b)if there are two or more schemes and they come into force on different days, the later or latest of the days.

(6)An agreement under this paragraph may provide for a transfer to take effect on a date specified in or determined in accordance with the agreement; but the agreement may provide that a transfer is not to take effect unless the circumstances are such as the agreement specifies.

(7)When a transfer agreed under this paragraph takes effect the agreement has effect to transfer (in accordance with its provisions) the property, rights or liabilities concerned, subject to any enactment which provides for transactions to be registered in a statutory register.

Documents of title

12(1)This paragraph applies if on a transfer under a transfer scheme a transferor is entitled to retain possession of any document relating in part to the title to, or to the management of, any land or other property transferred to a transferee.

(2)If the land or other property is situated in England and Wales—

(a)the transferor is to be treated as having given the transferee an acknowledgement in writing of the transferee’s right to production of the document and to delivery of copies of it, and

(b)section 64 of the [1925 c. 20.] Law of Property Act 1925 (production and safe custody of documents) is to apply to the acknowledgement and is to apply on the basis that the acknowledgement does not contain an expression of contrary intention.

(3)If the land or other property is situated in Scotland, subsections (1) and (2) of section 16 of the [1979 c. 33.] Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) is to have effect in relation to the transfer as if the transfer had been effected by deed and as if from each of those subsections the words “unless specially qualified” were omitted.

(4)If the land or other property is situated in Northern Ireland—

(a)the transferor is to be treated as having given the transferee an acknowledgement in writing of the transferee’s right to production of the document and to delivery of copies of it, and

(b)section 9 of the [1881 c. 41.] Conveyancing Act 1881 (which corresponds to section 64 of the [1925 c. 20.] Law of Property Act 1925) is to apply to the acknowledgement and is to apply on the basis that the acknowledgement does not contain an expression of contrary intention.

Foreign property, rights and liabilities

13(1)This paragraph applies if a transfer scheme provides for the transfer of foreign property, rights or liabilities from a transferor to a transferee.

(2)The transferor and the transferee must take such steps as may be necessary to secure that the vesting of the property, rights or liabilities in the transferee is effective under the relevant foreign law; and the transferor must take the steps at such times as the transferee may specify in directions given to the transferor.

(3)Until the vesting of the property, rights or liabilities in the transferee is effective under the relevant foreign law, the transferor must—

(a)hold the property or rights for the transferee’s benefit, or

(b)discharge the liabilities on the transferee’s behalf.

(4)The transferor is to have all powers necessary for the performance of his duty under sub-paragraph (2), but the transferee must act on the transferor’s behalf (so far as possible) in the performance of that duty.

(5)Nothing in sub-paragraphs (2) to (4) affects the law of the United Kingdom (or of any part of the United Kingdom) as it applies to the vesting of the property, rights or liabilities in the transferee by virtue of the transfer scheme.

(6)References in this paragraph to foreign property, rights or liabilities are references to property, rights or liabilities as respects which any issue arising in any proceedings would be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(7)The transferee must meet any expenses incurred by the transferor in consequence of this paragraph.

(8)Duties imposed on the transferor or the transferee by this paragraph are enforceable in the same way as if they were imposed by a contract between them.

Certificates

14(1)This paragraph applies if—

(a)a transfer scheme provides for the transfer of property, rights or liabilities from a transferor to a transferee, and

(b)a certificate falling within sub-paragraph (2) is made jointly by or on behalf of the parties.

(2)A certificate falls within this sub-paragraph if it certifies that any specified property, right or liability—

(a)was intended to be, and was, vested in the transferee by virtue of the transfer, and

(b)has not been the subject of an agreement under paragraph 11.

(3)The certificate is to be conclusive evidence for all purposes of the facts it certifies.

(4)The reference in sub-paragraph (2) to property includes a reference to an interest in or right over property.

(5)Sub-paragraph (6) applies if—

(a)one of the parties requests the other to join in the preparation of a certificate, and

(b)they fail to agree the terms of a certificate within the period of one month starting with the day of the request.

(6)The parties must—

(a)refer the matter to the Secretary of State, and

(b)issue a certificate in such terms as may be specified in a direction given by him.

(7)The parties are the transferor and the transferee.

Restrictions on dealing with land

15(1)For the purposes of this paragraph a person is a party if—

(a)he is the transferor (or one of the transferors) under a transfer scheme and holds an interest in land immediately after the scheme comes into force, or

(b)he is the transferee (or one of the transferees) under the scheme and an interest in land is transferred to him under the scheme.

(2)For the purposes of this paragraph the relevant land is any land in which any party has an interest immediately after the scheme comes into force.

(3)On the representation of any of the parties the Secretary of State may give to the parties a direction stating that sub-paragraph (4) is to apply to such of the relevant land as the direction specifies.

(4)While the direction remains in force—

(a)no party may dispose of an interest in any of the specified land unless the Secretary of State consents;

(b)if a party proposes to dispose of such an interest and the Secretary of State thinks it necessary or expedient to exercise any of the powers set out in sub-paragraph (5) for the protection of any other party, the Secretary of State may exercise any of those powers.

(5)The powers are—

(a)power to consent to the proposed disposal subject to compliance with such conditions as the Secretary of State may see fit to impose;

(b)power to require a party to dispose of an interest in any of the specified land to such person and in such manner as may be specified in the requirement;

(c)power to require a party to acquire another party’s interest in any of the specified land.

(6)In sub-paragraph (5)(b) and (c) references to an interest include (but are not limited to) references to the interest whose disposal is proposed.

(7)A person who is not a party and who is dealing with a party (or with a person claiming under a party) in relation to land is not to be concerned to see or enquire—

(a)whether this paragraph applies (or has applied) in relation to any of the land;

(b)whether a direction under this paragraph has been given in relation to any of the land;

(c)whether this paragraph or any condition imposed or requirement made under it has been complied with in connection with the dealing or any other dealing concerning any of the land.

(8)No transaction between a person who is not a party (on the one hand) and a party or a person claiming under a party (on the other) is to be invalid by reason of any failure to comply with this paragraph or any condition imposed or requirement made under it.

Construction of agreements etc

16(1)This paragraph applies if—

(a)a transfer scheme provides for the transfer of property, rights or liabilities from a transferor to a transferee, and

(b)immediately before the coming into force of the scheme the transferor was entitled or subject to the property, rights or liabilities under an agreement to which he was then a party.

(2)This paragraph applies—

(a)whether or not the agreement is in writing;

(b)whether or not the transferor could assign the property, rights or liabilities.

(3)So far as the agreement relates to the property, rights or liabilities transferred to the transferee, as respects anything falling to be done after the coming into force of the scheme the agreement is to have effect as if—

(a)the transferee had been a party to it instead of the transferor;

(b)a reference to the transferor were a reference to the transferee;

(c)a reference to a person employed by (or engaged in the business of) the transferor and holding a specified office or serving in a specified capacity were a reference to such a person as the transferee may appoint or, in default of appointment, to a person with corresponding functions who is employed by (or engaged in the business of) the transferee;

(d)a reference in general terms to persons employed by, persons engaged in the business of, or agents of, the transferor were a reference to persons employed by, persons engaged in the business of, or agents of, the transferee.

(4)A reference mentioned in sub-paragraph (3)(b) or (c) may be express or implied; and if express it is immaterial how it is worded.

(5)It is immaterial how a reference mentioned in sub-paragraph (3)(d) is worded.

17(1)This paragraph applies if—

(a)a transfer scheme provides for the transfer of property, rights or liabilities from a transferor to a transferee, and

(b)immediately before the coming into force of the scheme any provision of an agreement to which the transferor was not a party, any statutory provision or any provisions of a document (other than an agreement) related to the property, rights or liabilities transferred to the transferee.

(2)This paragraph applies—

(a)whether or not the agreement mentioned in sub-paragraph (1)(b) is in writing;

(b)whether or not the transferor could assign the property, rights or liabilities.

(3)So far as the agreement, provision or document relates to the property, rights or liabilities transferred to the transferee, as respects anything falling to be done after the coming into force of the scheme the agreement, provision or document is to have effect as if—

(a)a reference to the transferor were a reference to the transferee;

(b)a reference to a person employed by (or engaged in the business of) the transferor and holding a specified office or serving in a specified capacity were a reference to such a person as the transferee may appoint or, in default of appointment, to a person with corresponding functions who is employed by (or engaged in the business of) the transferee;

(c)a reference in general terms to persons employed by, persons engaged in the business of, or agents of, the transferor were a reference to persons employed by, persons engaged in the business of, or agents of, the transferee.

(4)A reference mentioned in sub-paragraph (3)(a) or (b) may be express or implied; and if express it is immaterial how it is worded.

(5)It is immaterial how a reference mentioned in sub-paragraph (3)(c) is worded.

(6)A reference mentioned in sub-paragraph (3) to the transferor may be a general reference to a class of persons of which the transferor is one (without the transferor being named).

(7)For the purposes of this paragraph a statutory provision is a provision contained in an Act or in a document made or issued under an Act; and here “Act” includes a private or local Act.

Proceedings etc

18(1)This paragraph applies if a transfer scheme provides for a transfer from a transferor to a transferee.

(2)From the coming into force of the scheme the transferee is to have the same rights, powers and remedies for ascertaining, perfecting or enforcing a right or liability transferred to him under the scheme as he would have had if the right or liability had at all times been a right or liability of his.

(3)From the coming into force of the scheme any person (other than the transferee) is to have the same rights, powers and remedies for ascertaining, perfecting or enforcing a right or liability transferred to the transferee under the scheme as he would have had if the right or liability had at all times been a right or liability of the transferee.

(4)The rights and powers which the transferee or any other person is to have include—

(a)rights and powers as to the taking or resisting of legal proceedings;

(b)rights and powers as to the making or resisting of applications to an authority.

(5)Sub-paragraph (6) applies if on the coming into force of the scheme legal proceedings or applications to an authority by or against the transferor are pending.

(6)The proceedings or applications must be continued by or against the transferee (to the transferor’s exclusion) in so far as they relate—

(a)to any property, rights or liabilities transferred to the transferee under the scheme, or

(b)to any agreement or enactment relating to any such property, rights or liabilities.

Third parties

19(1)This paragraph applies if—

(a)an agreement is made by the parties under paragraph 5 or 9 or treated as made under paragraph 6 or 10, or

(b)an instrument is executed by the parties under paragraph 9.

(2)The agreement or instrument is to bind all other persons even if it would (apart from this sub-paragraph) have required the consent or concurrence of any other person.

(3)If as a result of the agreement or instrument the rights or liabilities of a person who is not a party become enforceable as to part against or by one party and as to part against or by another party—

(a)the parties must notify that person of the agreement or instrument;

(b)that person may within the period of 28 days (starting with the day he is notified) apply to the Secretary of State to give a direction to vary the agreement or instrument.

(4)If the Secretary of State is satisfied that the agreement or instrument operated unfairly against that person, the Secretary of State may give a direction to the parties requiring them to vary the agreement or instrument in a way specified in the direction.

20(1)For the purposes of this paragraph—

(a)a party is a person who is a transferor or a transferee under the transfer scheme or schemes referred to in this paragraph;

(b)a third party is a person who is not a transferor or a transferee under the transfer scheme or schemes referred to in this paragraph.

(2)This paragraph applies if—

(a)a transfer scheme is made or transfer schemes are made,

(b)rights or liabilities of a third party are (apart from the scheme or schemes) enforceable against or by a transferor,

(c)in consequence of the scheme or schemes or of anything done under this Schedule the third party’s rights or liabilities become enforceable as to different parts against or by different parties, and

(d)the value of any property or interest of the third party is diminished as a result.

(3)Just compensation must be paid to the third party by one or more of these persons—

(a)the parties against or by whom the third party’s rights or liabilities become enforceable;

(b)the transferor concerned (if he does not fall within paragraph (a)).

(4)If it appears to the transferor that a person is or may be entitled to compensation the transferor must—

(a)notify the person that he is or may be entitled, and

(b)invite him to make representations to the transferor within the period of 14 days starting with the date the notification is made.

(5)But if the transferor does not know the person’s name and address he must instead publish (in a manner he thinks is appropriate) a notice which—

(a)contains information about the property or interest affected, and

(b)invites any person who thinks he is or may be entitled to compensation to make representations to the transferor within the period specified in the notice (which must not be less than 28 days starting with the date of publication of the notice).

(6)A dispute about whether (or how much) compensation is payable under this paragraph, or about who must pay or be paid it, must be referred to and determined by—

(a)an arbitrator appointed by the President of the Royal Institution of Chartered Surveyors (if the proceedings are to be held in England and Wales),

(b)an arbiter appointed by the Chairman of the Royal Institution of Chartered Surveyors in Scotland (if the proceedings are to be held in Scotland), or

(c)an arbitrator appointed by the Lord Chancellor (if the proceedings are to be held in Northern Ireland).

21(1)For the purposes of this paragraph—

(a)a third party is a person who is not a transferor or a transferee under the transfer scheme or schemes referred to in this paragraph;

(b)a transferred item is any property, right, liability, undertaking or part of an undertaking which is the subject of a transfer (or transfers) under the transfer scheme or schemes referred to in this paragraph.

(2)This paragraph applies if a transfer scheme is made (or transfer schemes are made) and there are court proceedings the parties to which are (or include) a third party and either—

(a)the transferor of a transferred item, or

(b)any transferee or transferees of the item.

(3)The third party may apply to the court at any stage in the proceedings on any of these grounds—

(a)that the issues in the proceedings depend on the identification, with regard to the transferred item, of what has been transferred to whom and what (if anything) has been retained and that the identification has not yet been made;

(b)that the issues in the proceedings raise a question of construction on the provisions of this Chapter which would not arise if the transferor of the transferred item and the transferee (or transferees) of it constituted a single person.

(4)If it appears to the court that such a ground is established it may hear and determine the proceedings on the first and second bases set out below.

(5)If the transferor of the transferred item is a party to the proceedings, the first basis is that the transferor represents and is answerable for the transferee (or transferees) of the item.

(6)If there is one transferee of the transferred item and he is a party to the proceedings, the first basis is that the transferee represents and is answerable for the transferor of the item.

(7)If there are two or more transferees of the transferred item and they are parties to the proceedings, the first basis is that the transferees represent and are answerable for the transferor of the item.

(8)If there are two or more transferees of the transferred item and one or more of them (but not both or all of them) are parties to the proceedings, the first basis is that—

(a)the transferee who is a party represents and is answerable for the transferor of the item and for the transferee of it who is not (or the transferees of it who are not) parties, or

(b)the transferees who are parties represent and are answerable for the transferor of the item and for the transferee of it who is not (or the transferees of it who are not) parties.

(9)The second basis is that the transferor of the transferred item and the transferee (or transferees) of it constitute a single person.

(10)If the court determines the proceedings on the first and second bases any judgment or order of the court is to bind both the transferor and the transferee (or transferees) of the transferred item.

22(1)For the purposes of this paragraph a relevant person is a person who satisfies these conditions—

(a)he is a transferor or transferee under a transfer scheme or transfer schemes, and

(b)he might be prejudiced by paragraph 21 if there were court proceedings in which the scheme or schemes were an issue.

(2)A relevant person must keep each other relevant person informed of any court proceedings in which the scheme or schemes may become an issue.

23(1)This paragraph applies if a person falling within sub-paragraph (3) (the claimant) claims that—

(a)he has been prejudiced by paragraph 21,

(b)another person or other persons falling within sub-paragraph (3) ought to indemnify him, and

(c)there has been an unreasonable failure by the person (or any of the persons) to indemnify him.

(2)The claimant may refer the matter to the Secretary of State for determination by him; and a determination must be complied with.

(3)A person falls within this sub-paragraph if he is a transferor or a transferee under the scheme or schemes concerned.

General

24Paragraphs 11 to 18 and 20 apply whether or not property, rights or liabilities are (or are to be) transferred under the scheme or schemes as a constituent of an undertaking (or part of one).

25(1)Paragraphs 12 to 18 and 20 to 24 have effect as if references to a transfer scheme or schemes included references to—

(a)an agreement or agreements under paragraph 9 or 11;

(b)an instrument or instruments under paragraph 9;

(c)an agreement or agreements treated as made under paragraph 10.

(2)Where paragraph 14 has effect in relation to an agreement under paragraph 11 by virtue of sub-paragraph (1), sub-paragraph (2)(b) of paragraph 14 shall be disregarded.

(3)Paragraph 19 has effect in relation to an agreement under paragraph 11 as it has effect in relation to an agreement made under paragraph 5 or 9.

(4)Where paragraphs 12 to 24 have effect in relation to—

(a)an agreement under paragraph 9 or 11,

(b)an instrument under paragraph 9, or

(c)an agreement treated as made under paragraph 10,

references to a transferor or a transferee have effect as references to a transferor or a transferee under the agreement or the instrument.

Section 64.

SCHEDULE 7Transfer schemes: tax

Interpretation

1In this Schedule—

  • “the 1988 Act” means the [1988 c. 1.] Income and Corporation Taxes Act 1988;

  • “the 1990 Act” means the [1990 c. 1.] Capital Allowances Act 1990;

  • “the 1992 Act” means the [1992 c. 12.] Taxation of Chargeable Gains Act 1992;

  • “relevant transfer” means a transfer of property, rights or liabilities under a transfer scheme;

  • “transferee” in relation to a relevant transfer means the person to whom the property, rights or liabilities are transferred;

  • “transferor” in relation to a relevant transfer means the person from whom the property, rights or liabilities are transferred.

Chargeable gains: general

2(1)For the purposes of the 1992 Act a disposal constituted by a relevant transfer is to be taken (in relation to the transferee as well as the transferor) to be for a consideration such that no gain or loss accrues to the transferor.

(2)Sub-paragraph (1) has effect subject to the following provisions of this Schedule.

(3)In section 35(3)(d) of the 1992 Act (list of provisions for transfers treated as made without gain or loss) after sub-paragraph (xii) insert—

(xiii)paragraph 2(1) of Schedule 7 to the Transport Act 2000;.

(4)Section 171(1) of the 1992 Act (provision in relation to disposal of assets from one member of a group of companies to another member of the group) does not apply if the disposal in question is constituted by a relevant transfer.

(5)Expressions used in this paragraph and in the 1992 Act have the same meanings in this paragraph as in that Act.

Chargeable gains: securities

3(1)This paragraph applies if—

(a)assets are transferred to a company under a transfer scheme,

(b)in consequence the Secretary of State gives a direction under section 49 above, and

(c)the company issues securities in accordance with the direction.

(2)For the purposes of the 1992 Act the person to whom the securities are issued is to be treated as acquiring them for a consideration—

(a)provided by him wholly and exclusively for the securities, and

(b)equal to the market value of the assets transferred to the company under the scheme.

(3)This paragraph applies whether or not the person to whom the securities are issued is the person transferring the assets under the scheme.

(4)Expressions used in this paragraph and in the 1992 Act have the same meanings in this paragraph as in that Act.

4(1)This paragraph applies if —

(a)the Secretary of State gives a direction under section 57 above requiring the CAA to release a company from liability in respect of debts,

(b)in connection with the direction the Secretary of State gives a direction or directions under section 58 above, and

(c)securities are issued in accordance with the direction or directions under section 58.

(2)Sub-paragraph (3) applies if the direction under section 58 requires securities to be issued to one person only or the directions under that section (taken together) require securities to be issued to one person only; and sub-paragraph (4) applies in any other case.

(3)For the purposes of the 1992 Act the person to whom the securities are issued is to be treated as acquiring them for a consideration—

(a)provided by him wholly and exclusively for the securities, and

(b)equal to the amount of the liability affected by the release required by the direction under section 57.

(4)For the purposes of the 1992 Act a person to whom any of the securities are issued is to be treated as acquiring them for a consideration—

(a)provided by him wholly and exclusively for the securities, and

(b)equal to such part as is just and reasonable of the amount of the liability affected by the release required by the direction under section 57.

(5)This paragraph applies whether or not the person to whom the securities are issued, or any person to whom any of the securities are issued, is a person transferring anything under the transfer scheme in connection with which the direction under section 57 is given.

(6)Expressions used in this paragraph and in the 1992 Act have the same meanings in this paragraph as in that Act.

Chargeable gains: value shifting

5Nothing in this Chapter and nothing done under it is to be regarded as a scheme or arrangement for the purposes of section 30 of the 1992 Act (tax-free benefits).

Chargeable gains: roll-over relief

6(1)This paragraph applies if—

(a)but for section 154 of the 1992 Act (depreciating assets) a held-over gain would have been carried forward to a depreciating asset,

(b)the asset is the subject of a relevant transfer, and

(c)the Secretary of State is not the transferee under the relevant transfer.

(2)Section 154 is to have effect as if the gain had accrued to, and the claim for it to be held over had been made by, the transferee and as if the transferor’s acquisition of the depreciating asset had been the transferee’s acquisition of it.

(3)Expressions used in this paragraph and in section 154 have the same meanings in this paragraph as in that section.

Chargeable gains: restriction of losses

7(1)If there has been a relevant transfer of an asset section 174(1) of the 1992 Act (which applies section 41 to cases where assets have been acquired without gain or loss) is to have effect as if the asset had been transferred to the transferee, and acquired by him, in relevant circumstances.

(2)This paragraph is not to prejudice paragraph 2.

(3)Expressions used in this paragraph and in section 174(1) of the 1992 Act have the same meanings in this paragraph as in section 174(1).

Chargeable gains: groups

8(1)Sub-paragraph (2) applies if a company (the degrouped company)—

(a)acquired an asset from another company at any time when both were members of the same group of companies (the old group),

(b)ceases by virtue of a relevant transfer to be a member of the old group, and

(c)becomes by virtue of the transfer a member of another group of companies (the new group).

(2)Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3)Sub-paragraph (4) applies if—

(a)sub-paragraph (2) applies to an asset, and

(b)the degrouped company ceases to be a member of the new group.

(4)On the company so ceasing section 179 of the 1992 Act is to have effect as if the degrouped company and the company from which it acquired the asset had been members of the new group at the time of acquisition.

(5)But sub-paragraph (4) does not apply if—

(a)at the time when the degrouped company ceases to be a member of the new group the company from which it acquired the asset also ceases to be a member of the new group,

(b)the companies are associated companies immediately before and immediately after that time, and

(c)the companies were associated companies at the time of acquisition.

(6)Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

9(1)Sub-paragraph (3) applies if—

(a)a company (the degrouped company) ceases by virtue of a relevant transfer to be a member of a group of companies (the old group),

(b)it becomes by virtue of the transfer a member of another group of companies (the new group),

(c)it ceases to be a member of the new group, and

(d)the condition in sub-paragraph (2) is satisfied.

(2)The condition is that—

(a)the degrouped company acquired an asset under a relevant transfer at a time falling before it ceases to be a member of the new group, and

(b)at the time of acquisition the degrouped company and the transferor were not members of the new group.

(3)On the degrouped company ceasing to be a member of the new group section 179 of the 1992 Act is to have effect as if the degrouped company and the transferor had been members of the new group at the time of acquisition.

(4)But sub-paragraph (3) does not apply if—

(a)at the time when the degrouped company ceases to be a member of the new group the transferor also ceases to be a member of the new group,

(b)the companies are associated companies immediately before and immediately after that time, and

(c)the companies were associated companies at the time of acquisition.

(5)Paragraph 8(4) and sub-paragraph (3) above may apply on the same occasion; but if paragraph 8(4) applies to an asset on a given occasion sub-paragraph (3) above does not apply to that asset on that occasion.

(6)Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

10(1)Sub-paragraph (4) applies if—

(a)a company ceases by virtue of a relevant transfer to be a member of a group of companies (the old group),

(b)it becomes by virtue of the transfer a member of another group of companies (the new group),

(c)a company falling within sub-paragraph (2) (the degrouped company) ceases to be a member of the new group, and

(d)the condition in sub-paragraph (3) is satisfied.

(2)A company falls within this sub-paragraph if immediately before it ceases to be a member of the new group it is a subsidiary of—

(a)the company referred to in sub-paragraph (1)(a), or

(b)the principal company of the new group (if that company differs from the company referred to in sub-paragraph (1)(a)).

(3)The condition is that—

(a)the degrouped company acquired an asset under a relevant transfer at a time falling before it ceases to be a member of the new group, and

(b)at the time of acquisition the degrouped company and the transferor were not members of the new group.

(4)On the degrouped company ceasing to be a member of the new group section 179 of the 1992 Act is to have effect as if the degrouped company and the transferor had been members of the new group at the time of acquisition.

(5)But sub-paragraph (4) does not apply if—

(a)at the time when the degrouped company ceases to be a member of the new group the transferor also ceases to be a member of the new group,

(b)the companies are associated companies immediately before and immediately after that time, and

(c)the companies were associated companies at the time of acquisition.

(6)Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Capital allowances

11(1)This paragraph applies if—

(a)property which is plant or machinery is the subject of a relevant transfer,

(b)section 343 of the 1988 Act (company reconstructions without a change of ownership) does not apply in relation to the transfer, and

(c)the transfer scheme concerned contains provision for the disposal value of the property to be taken for the purposes of the Capital Allowances Acts to be of an amount specified in or determined in accordance with the scheme.

(2)For the purposes of the Capital Allowances Acts—

(a)the provision mentioned in sub-paragraph (1)(c) is to have effect (instead of section 26(1) or 59 of the 1990 Act) for determining an amount as the disposal value of the property or the price at which a fixture is to be treated as sold;

(b)the transferee is to be taken to have incurred expenditure of that amount on the provision of the property;

(c)in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.

(3)A provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision—

(a)for a determination to be made by the Secretary of State in a manner described in the scheme;

(b)for a determination to be made by reference to factors so described or to the opinion of a person so described;

(c)for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(4)The Treasury’s consent is required for the making or modification of a determination under a provision mentioned in sub-paragraph (1)(c).

(5)The transferee’s consent is also required for such a modification after the relevant transfer takes effect.

(6)If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(c) all necessary adjustments—

(a)must be made by making assessments or by repayment or discharge of tax, and

(b)must be made notwithstanding any limitation on the time within which assessments may be made.

(7)In this paragraph “the Capital Allowances Acts” has the same meaning as in the Tax Acts and “fixture” has the same meaning as in Chapter VI of Part II of the 1990 Act.

Transfers of trading stock

12(1)This paragraph applies if—

(a)under a relevant transfer trading stock of the transferor is transferred to the transferee, and

(b)the stock falls, immediately after the time when the transfer takes effect, to be treated as trading stock of the transferee.

(2)Sub-paragraphs (3) and (4) have effect in computing the profits or gains of the relevant trades for the purposes of the Corporation Tax Acts; and the relevant trades are—

(a)the trade in relation to which the stock is trading stock immediately before the time when the transfer takes effect, and

(b)the trade in relation to which it is trading stock after that time.

(3)The stock must be taken—

(a)to have been disposed of by the transferor in the course of the trade carried on by the transferor,

(b)to have been acquired by the transferee in the course of the trade carried on by the transferee, and

(c)subject to that, to have been disposed of and acquired at the time when the transfer takes effect.

(4)The stock must be valued for the purposes of each of the relevant trades as if the disposal and acquisition had been for a consideration which in relation to the transferor would have resulted in neither a profit nor a loss being brought into account in respect of the disposal in the accounting period of the transferor which ends with, or is current at, the time when the transfer takes effect.

(5)In this paragraph “trading stock” has the same meaning as in section 100 of the 1988 Act.

Trading losses: transfer of trade

13(1)This paragraph applies if a transfer scheme provides for a relevant transfer as a result of which the transferor ceases to carry on a trade and the transferee begins to carry it on.

(2)A transferor treated as ceasing to carry on a trade for the purposes of section 343 of the 1988 Act (company reconstructions without a change of ownership) is to be so treated for the purposes of this paragraph.

(3)A transferee treated as beginning to carry on a trade for the purposes of that section is to be so treated for the purposes of this paragraph.

(4)Sub-paragraph (5) applies if the transfer will result in the transferee being entitled to relief for an amount in respect of the trade under section 393(1) of the 1988 Act (trading losses) by virtue of section 343(3).

(5)In such a case the scheme may provide that the amount is to be treated as such amount (the replacement amount) as is specified in or determined in accordance with the scheme.

(6)Sub-paragraph (7) applies if the trade concerned is in fact part of a trade of the transferor and the transferor is entitled to relief for an amount under section 393(1) in respect of the part retained.

(7)In such a case the scheme may provide that the amount is to be treated as such amount (the replacement amount) as is specified in or determined in accordance with the scheme.

(8)A provision under sub-paragraph (5) or (7) must be such that the replacement amount is not greater than the amount it replaces; and the replacement amount may be nil.

(9)When the scheme comes into force a provision made under sub-paragraph (5) or (7) is to have effect for the purposes of arriving at the amount of relief concerned.

Trading losses: change in ownership

14(1)This paragraph applies if under a relevant transfer all the issued share capital of a company (the transferred company) is transferred from the CAA to—

(a)the Secretary of State, or

(b)a company whose shares are all held by the Secretary of State when the transfer takes effect.

(2)For the purposes of section 768 of the 1988 Act (disallowance of trading losses on change in company’s ownership) the transfer is not to be taken to result in a change in the ownership of—

(a)the transferred company, or

(b)a company which is a wholly owned subsidiary of the transferred company when the transfer takes effect.

Leased assets

15(1)This paragraph applies for the purposes of section 781 of the 1988 Act (assets leased to traders and others) if the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred to a person under a relevant transfer.

(2)The transfer is to be treated as made without any capital sum having been obtained in respect of the interest by the transferor or the transferee; and this is so notwithstanding section 783(4) of that Act.

Securities

16(1)This paragraph applies if securities are issued by a company in pursuance of a direction of the Secretary of State under section 49 or 58 above.

(2)A share issued by the company is to be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the company of an amount equal to the nominal value of the share.

(3)A debenture issued by the company is to be treated for the purposes of the Corporation Tax Acts as if it had been issued—

(a)wholly in consideration of a loan made to the company of an amount equal to the principal sum payable under the debenture, and

(b)wholly and exclusively for the purposes of the trade carried on by the company.

(4)If a debenture issued by the company includes provision for the payment of a sum expressed as interest in respect of a period falling wholly or partly before the issue of the debenture, a payment made in pursuance of the provision in respect of the period is to be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of the period and (accordingly) as interest on the principal sum payable under the debenture.

(5)This paragraph has effect subject to paragraphs 3, 4 and 17.

17(1)This paragraph applies if—

(a)securities are issued to a company in pursuance of a direction of the Secretary of State under section 49 or 58 above, and

(b)by virtue of any such security the company has a loan relationship for the purposes of the Corporation Tax Acts.

(2)For the purposes of Chapter II of Part IV of the [1996 c. 8.] Finance Act 1996 (loan relationships) the company is to be taken to have acquired its rights under the security wholly in consideration of a loan made by it to the issuing company of an amount equal to the principal sum payable under the security.

(3)Expressions used in this paragraph and in Chapter II of Part IV of the [1996 c. 8.] Finance Act 1996 have the same meanings in this paragraph as in that Chapter.

Stamp duty

18(1)A relevant transfer is not to give rise to liability to stamp duty.

(2)Stamp duty is not to be chargeable on a transfer scheme.

(3)Stamp duty is not to be chargeable on an instrument which is certified to the Commissioners of Inland Revenue by the Secretary of State as having been made for the purposes of (or for purposes connected with) a transfer scheme.

(4)But no instrument which is certified as mentioned in sub-paragraph (3) is to be taken to be duly stamped unless—

(a)it is stamped with the duty to which it would be liable but for that sub-paragraph, or

(b)it has, in accordance with section 12 of the [1891 c. 39.] Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with that duty or that it is duly stamped.

(5)Stamp duty is not to be chargeable on an instrument which is made under Schedule 6.

Stamp duty reserve tax

19An agreement is not to give rise to a charge to stamp duty reserve tax if—

(a)it is made for the purposes of (or for purposes connected with) a transfer scheme, or

(b)it is made under Schedule 6.

Agreements

20(1)Sub-paragraph (2) applies if the effect of—

(a)an agreement made under paragraph 9 or 11 of Schedule 6,

(b)an instrument executed under paragraph 9 of Schedule 6, or

(c)an agreement treated as made under paragraph 10 of Schedule 6,

is to modify the effect of a transfer scheme.

(2)This Schedule, the 1988 Act, the 1990 Act and the 1992 Act are to have effect as if—

(a)the scheme had been made as modified, and

(b)anything done by or in relation to the preceding holder had (so far as relating to the property, rights or liabilities affected by the modification) been done by or in relation to the subsequent holder.

(3)Sub-paragraph (4) applies to a disposal of an asset if the disposal—

(a)is effected in pursuance of an agreement made or treated as made under paragraph 9 or 10 of Schedule 6 or is effected by an instrument executed under paragraph 9 of that Schedule, and

(b)is the grant of a lease of land or the creation of other rights and liabilities over land.

(4)For the purposes of the 1992 Act the disposal is to be taken (in relation to the person to whom it is made as well as the person making it) to be for a consideration such that no gain or loss accrues to the person making it.

(5)Section 171(1) of the 1992 Act (provision in relation to disposal of assets from one member of a group of companies to another member of the group) does not apply if sub-paragraph (4) applies to the disposal in question.

(6)References in this paragraph to an agreement or instrument include references to the agreement or instrument as varied in accordance with a direction under paragraph 19(4) of Schedule 6.

(7)For the purposes of sub-paragraph (2) the preceding holder is the person who without the modification—

(a)became (under the transfer scheme concerned) entitled or subject to the property, rights or liabilities affected by the modification, or

(b)remained (despite the transfer scheme concerned) entitled or subject to the property, rights or liabilities affected by the modification,

as the case may be.

(8)For the purposes of sub-paragraph (2) the subsequent holder is the person who (in consequence of the modification) becomes, or resumes being, entitled or subject to the property, rights or liabilities affected by the modification.

Section 97.

SCHEDULE 8Amendments about air traffic

Part ILicences

House of Commons Disqualification Act 1975 (c. 24)

1In the House of Commons Disqualification Act 1975, in Part III of Schedule 1, after the entry “Director of the Commonwealth Institute” there shall be inserted—

  • Director of any of the following—

    (a)

    a company which for the time being holds a licence under Chapter I of Part I of the Transport Act 2000 (a licence company);

    (b)

    a company of which a licence company is a subsidiary (within the meaning given by section 736(1) of the Companies Act 1985 or Article 4(1) of the Companies (Northern Ireland) Order 1986);

    (c)

    a company which is a subsidiary (within the meaning so given) of a licence company.

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

2In the Northern Ireland Assembly Disqualification Act 1975, in Part III of Schedule 1, after the entry “Director of Cable and Wireless Limited nominated by a Minister of the Crown or government department” there shall be inserted—

  • Director of any of the following—

    (a)

    a company which for the time being holds a licence under Chapter I of Part I of the Transport Act 2000 (a licence company);

    (b)

    a company of which a licence company is a subsidiary (within the meaning given by section 736(1) of the Companies Act 1985 or Article 4(1) of the Companies (Northern Ireland) Order 1986);

    (c)

    a company which is a subsidiary (within the meaning so given) of a licence company.

Part IIAir navigation services

Civil Aviation Act 1982 (c. 16)

3Section 72 of the Civil Aviation Act 1982 (CAA’s duty to provide air navigation services) shall cease to have effect.

Part IIICharges

Civil Aviation Act 1982 (c. 16)

4Sections 73 and 74 of the Civil Aviation Act 1982 (charges for air navigation services etc) shall cease to have effect.

5In section 86 of the Civil Aviation Act 1982 (mortgaging of aircraft) in subsection (2)(b) for “section 74(4) above” there shall be substituted “section 83 of the Transport Act 2000 (detention and sale of aircraft)”.

6(1)Section 88 of the Civil Aviation Act 1982 (detention and sale of aircraft for unpaid airport charges) shall be amended as follows.

(2)In subsection (6)(d) for “regulations under section 73 above” substitute “section 73 of the Transport Act 2000 (or, if more than one such charge is due, in payment of them in such order as the Secretary of State may specify by order)”.

(3)In subsection (10) in the definition of “airport charges” for “regulations under section 73 above” substitute “section 73 of the Transport Act 2000”.

7In section 90 of the Civil Aviation Act 1982 (Convention rights) in subsection (2)(b) for “section 74(4) above” there shall be substituted “section 83 of the Transport Act 2000 (detention and sale of aircraft)”.

8(1)In Schedule 4 to the Civil Aviation Act 1982 (Eurocontrol) paragraph 1 shall be amended as follows.

(2)In sub-paragraph (5) omit the definition of “record”.

(3)After sub-paragraph (5) insert—

(6)For the purposes of this paragraph a record includes (in addition to a record in writing)—

(a)a disc, tape, sound-track or other device in which sounds or signals are embodied so as to be capable of being reproduced from it (with or without the aid of some other instrument);

(b)a film, tape or other device in which visual images are embodied so as to be capable of being reproduced from it (with or without the aid of some other instrument);

(c)a photograph.

9In Schedule 13 to the Civil Aviation Act 1982 (subordinate instruments) in Part II after the entry relating to section 87 there shall be inserted—

Section 88(6)(d)Priority of chargesSubject to the negative resolution procedure.

Airports Act 1986 (c. 31)

10In section 36 of the Airports Act 1986 (interpretation) in subsection (1) in the definition of “airport charges” for “regulations under section 73 of the 1982 Act (air navigation services etc))” there shall be substituted “section 73 of the Transport Act 2000 (charges for services))”.

Part IVCompetition

Fair Trading Act 1973 (c. 41)

11In section 133 of the Fair Trading Act 1973 (general restrictions on disclosure of information) at the end of subsection (2)(a) there shall be inserted “Part I of the Transport Act 2000 or”.

Competition Act 1980 (c. 21)

12In section 19 of the Competition Act 1980 (restriction on disclosure of information) in subsection (3) after paragraph (r) there shall be inserted—

(s)Part I of the Transport Act 2000.

Civil Aviation Act 1982 (c. 16)

13In section 4 of the Civil Aviation Act 1982 (CAA’s general objectives) after subsection (2) there shall be inserted—

(3)The duty mentioned in subsection (1) above does not apply in relation to anything done by the CAA in the performance of functions mentioned in subsection (3) of section 86 of the Transport Act 2000 which, by virtue of that section, are concurrent functions of the CAA and the Director General of Fair Trading.

(4)However, when performing such a function the CAA may have regard to any matter in respect of which a duty is imposed by subsection (1) above if it is a matter to which the Director General of Fair Trading could have regard when performing that function.

Competition Act 1998 (c. 41)

14(1)Section 54 of the Competition Act 1998 (regulators) shall be amended as follows.

(2)In subsection (1) after “Schedule 10” insert “and the Civil Aviation Authority”.

(3)In subsection (4) after “Schedule 10” insert “or by Chapter V of Part I of the Transport Act 2000”.

15In Schedule 11 to the Competition Act 1998 (interpretation of provisions about disclosure of information) in paragraph 1 after sub-paragraph (p) there shall be inserted—

(q)Part I of the Transport Act 2000.

16(1)Schedule 13 to the Competition Act 1998 (transitionals and savings) shall be amended as follows.

(2)In paragraph 1(1) in the definition of “regulator” after “Schedule 10” insert “and the Civil Aviation Authority”.

(3)In paragraph 35(2) after paragraph (g) insert—

(h)in the case of the Civil Aviation Authority, the supply of air traffic services within the meaning given by section 98 of the Transport Act 2000.

Part VHostilities etc

Civil Aviation Act 1982 (c. 16)

17(1)Section 6 of the Civil Aviation Act 1982 (directions in national interest etc) shall be amended as follows.

(2)In each of subsections (1) and (2) omit the words from “and in so far” to the end.

(3)After subsection (2) insert—

(3)In so far as any directions given under this section conflict with the requirements of section 93 of the Transport Act 2000 or of an order under section 94 of that Act, the directions shall be disregarded.

(4)In so far as any directions given under this section conflict with the requirements of any enactment or instrument relating to the CAA (other than section 93 of the Transport Act 2000 or an order under section 94 of that Act) the requirements shall be disregarded.

18Sections 62 and 63 of the Civil Aviation Act 1982 (control in time of war or emergency) shall cease to have effect.

Airports Act 1986 (c. 31)

19(1)Section 30 of the Airports Act 1986 (directions in interests of national security etc) shall be amended as follows.

(2)After subsection (4) insert—

(4A)In so far as any direction applying to an airport operator by virtue of subsection (1), (2) or (3) conflicts with the requirements of section 93 of the Transport Act 2000 or of an order under section 94 of that Act, the direction shall be disregarded.

(3)In subsection (5) after “to him as an airport operator” insert “(other than section 93 of the Transport Act 2000 or an order under section 94 of that Act)”.

Section 102.

SCHEDULE 9Air traffic: information

Prohibition on disclosure

1(1)This Schedule applies to information if—

(a)it was obtained under or by virtue of this Part, and

(b)it relates to the affairs of an individual or to a particular business.

(2)The information must not be disclosed during the lifetime of the individual or so long as the business is carried on, except as provided below.

Disclosure with consent

2Paragraph 1(2) does not apply to a disclosure made with the consent of the individual or the person for the time being carrying on the business.

Other permitted disclosures

3(1)Paragraph 1(2) does not apply to a disclosure made—

(a)for the purpose of facilitating the carrying out by the Secretary of State, the CAA or the Competition Commission of any of his or their functions under this Part;

(b)for the purpose of facilitating the carrying out by a person or body mentioned in sub-paragraph (2) of any of his or its functions under an enactment or instrument specified in sub-paragraph (3);

(c)for the purpose of enabling or assisting the Secretary of State or the Treasury to exercise any powers conferred by the [1986 c. 60.] Financial Services Act 1986 or by the enactments relating to companies, insurance companies or insolvency;

(d)for the purpose of enabling or assisting an inspector appointed under the enactments relating to companies to carry out his functions;

(e)for the purpose of enabling or assisting an official receiver to carry out his functions under the enactments relating to insolvency or for the purpose of enabling or assisting a recognised professional body for the purposes of section 391 of the [1986 c. 45.] Insolvency Act 1986 or Article 350 of the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989 to carry out its functions;

(f)for the purpose of facilitating the carrying out by the Health and Safety Commission or the Health and Safety Executive of any of its functions under any enactment or of facilitating the carrying out by any enforcing authority (within the meaning of Part I of the [1974 c. 37.] Health and Safety at Work etc. Act 1974) of any functions under a relevant statutory provision (within the meaning of that Act);

(g)for the purpose of facilitating the carrying out by the Comptroller and Auditor General of any of his functions under any enactment;

(h)in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings;

(i)for the purposes of any civil proceedings brought under or by virtue of this Part or any enactment or instrument specified in sub-paragraph (3);

(j)in pursuance of a Community obligation;

(k)for the purpose of facilitating the performance of any function of the European Commission in respect of Community law about competition;

(l)by the Secretary of State, or with his consent, to an international organisation of which the United Kingdom is a member;

(m)in connection with negotiations conducted by officers of the Secretary of State with representatives of the government of a country or territory outside the United Kingdom;

(n)in connection with the discharge of an obligation of the United Kingdom under international arrangements;

(o)to a person to whom the information in question is required to be disclosed by regulations made in pursuance of section 7(2) of the [1982 c. 16.] Civil Aviation Act 1982 (special provisions as respects certain functions);

(p)for the purposes of an investigation undertaken in pursuance of regulations made under section 75 of the [1982 c. 16.] Civil Aviation Act 1982 (investigation of accidents).

(2)The persons and bodies are—

(a)any Minister of the Crown;

(b)the Director General of Fair Trading;

(c)the Competition Commission;

(d)the Director General of Telecommunications;

(e)the Independent Television Commission;

(f)the Director General of Gas Supply;

(g)the Director General of Water Services;

(h)the Director General of Electricity Supply;

(i)the Coal Authority;

(j)the CAA;

(k)the Rail Regulator;

(l)the Insolvency Practitioners Tribunal;

(m)a local weights and measures authority in Great Britain.

(3)The enactments and instruments are—

(a)the [1968 c. 29.] Trade Descriptions Act 1968;

(b)the [1973 c. 41.] Fair Trading Act 1973;

(c)the [1974 c. 39.] Consumer Credit Act 1974;

(d)the [1979 c. 38.] Estate Agents Act 1979;

(e)the [1980 c. 21.] Competition Act 1980;

(f)the [1984 c. 12.] Telecommunications Act 1984;

(g)the [1986 c. 31.] Airports Act 1986;

(h)the [1986 c. 44.] Gas Act 1986;

(i)the [1986 c. 45.] Insolvency Act 1986;

(j)the [1987 c. 43.] Consumer Protection Act 1987;

(k)the [1989 c. 29.] Electricity Act 1989;

(l)the [1990 c. 42.] Broadcasting Act 1990;

(m)the [1991 c. 29.] Property Misdescriptions Act 1991;

(n)the [1991 c. 56.] Water Industry Act 1991;

(o)the [1991 c. 57.] Water Resources Act 1991;

(p)the [1993 c. 43.] Railways Act 1993;

(q)the [1994 c. 21.] Coal Industry Act 1994;

(r)the [1998 c. 41.] Competition Act 1998;

(s)any subordinate legislation made for the purpose of securing compliance with Articles 84 and 85 of the Treaty establishing the European Community;

(t)any subordinate legislation made for the purpose of securing compliance with the Directive of the Council of the European Communities dated 10th September 1984 (No. 84/450/EEC) on the approximation of the laws, regulations and administrative provisions of the member States concerning misleading advertising;

(u)any Air Navigation Order made under section 60 of the [1982 c. 16.] Civil Aviation Act 1982.

4The Secretary of State may by order amend paragraph 3.

Other exceptions

5(1)Paragraph 1(2) does not limit—

(a)the information which may be included in a report of the Competition Commission on a reference under section 12;

(b)the information or advice which may be published by the CAA under section 90.

(2)Paragraph 1(2) does not apply to—

(a)information which has been published in a report published under section 13;

(b)information which has otherwise been made available to the public by being disclosed in circumstances in which, or for a purpose for which, disclosure is not precluded by this Schedule.

(3)Information obtained by the CAA in exercising functions which are exercisable concurrently with Director General of Fair Trading under Part I of the [1998 c. 41.] Competition Act 1998 is subject to sections 55 and 56 of that Act (disclosure) and not to paragraph 1(2).

Offence

6A person who discloses information in contravention of this Schedule is guilty of an offence and liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

Section 153.

SCHEDULE 10Competition test for exercise of bus functions

Functions to which Schedule applies

1(1)The functions to which this Schedule applies are those of—

(a)making and varying quality partnership schemes,

(b)making and varying ticketing schemes, and

(c)inviting and accepting tenders under section 89 or 91 of the [1985 c. 67.] Transport Act 1985 (subsidised services).

(2)For the purposes of this Schedule an authority proposes (or authorities propose) to exercise a function to which this Schedule applies—

(a)in the case of the function of making or varying a quality partnership scheme, once notice of a proposal to make or vary it has been given under section 115(1),

(b)in the case of the function of making or varying a ticketing scheme, once notice of a proposal to make or vary it has been given under section 136(1), and

(c)in the case of the function of inviting or accepting tenders under section 89 or 91 of the [1985 c. 67.] Transport Act 1985, once it is proposed to invite tenders under section 89(2) or 91(3) of that Act or to accept or not to accept a tender under section 89 of that Act.

Competition test

2(1)For the purposes of this Schedule the exercise or proposed exercise of a function to which this Schedule applies meets the competition test unless it—

(a)has or is likely to have a significantly adverse effect on competition, and

(b)is not justified by sub-paragraph (2).

(2)The exercise or proposed exercise of a function is justified if—

(a)it is with a view to achieving one or more of the purposes specified in sub-paragraph (3), and

(b)its effect on competition is or is likely to be proportionate to the achievement of that purpose or any of those purposes.

(3)The purposes referred to in sub-paragraph (2) are—

(a)securing improvements in the quality of vehicles or facilities used for or in connection with the provision of local services,

(b)securing other improvements in local services of substantial benefit to users of local services, and

(c)reducing or limiting traffic congestion, noise or air pollution.

Applications to Director for decision

3(1)An application may be made to the Director General of Fair Trading (in this Schedule referred to as “the Director”) for him to decide whether the exercise or proposed exercise of a function to which this Schedule applies meets the competition test.

(2)An application may be made under this paragraph by—

(a)the authority or authorities by whom the function has been exercised or is proposed to be exercised, or

(b)any operator of local services who is, or is likely to be, affected by the exercise of the function.

4(1)If an application is made under paragraph 3 by the authority or authorities by whom a function has been exercised or is proposed to be exercised, it or they must inform any operators of local services who, in the opinion of the authority or authorities, are or are likely to be affected by the exercise of the function that the application has been made.

(2)If an application is made under paragraph 3 by an operator of local services, he must inform the authority or authorities by whom the function has been exercised or is proposed to be exercised that the application has been made.

(3)The Director must arrange for an application made under paragraph 3 to be published in such a way as he thinks most suitable for bringing it to the attention of those likely to be affected by it, unless he is satisfied that it will be sufficient for him to seek information from one or more particular persons.

(4)The Director may at any time decide not to consider, or further consider, an application made under paragraph 3 if—

(a)he is of the opinion that he has not been provided with sufficient information to do so by the person or persons by whom the application was made, or

(b)sub-paragraph (1) or (2) has not been complied with.

(5)In determining an application made under paragraph 3, the Director must take into account any representations made to him about the application.

Investigations by Director

5If at any time the Director considers that the exercise or proposed exercise of a function to which this Schedule applies may not meet the competition test, he may conduct an investigation.

6(1)For the purposes of an investigation under paragraph 5 the Director may require any person—

(a)to produce to him or to a person appointed by him, at a specified time and place, any specified document, or

(b)to provide him or such a person, at such a time and place, any specified information,

which he considers relates to any matter relevant to the investigation.

(2)The power conferred by sub-paragraph (1) is to be exercised by a notice in writing indicating the subject matter and purpose of the investigation; and in this paragraph “specified” means—

(a)specified, or described, in the notice, or

(b)falling within a category which is specified, or described, in the notice.

(3)Information required to be provided under sub-paragraph (1) shall be provided in the specified manner and form.

(4)The power conferred by sub-paragraph (1) to require a person to produce a document includes power—

(a)to require him to provide an explanation of the document, or

(b)if the document is not produced, to require him to state, to the best of his knowledge and belief, where it is.

(5)In this paragraph “information” includes estimates and forecasts.

7(1)If a person refuses or fails to comply with a notice under paragraph 6, the Director may certify that fact in writing to the High Court which may enquire into the case.

(2)If after hearing—

(a)any witness who may be produced against or on behalf of the person, and

(b)any statement which may be offered in defence,

the High Court is satisfied that the person did not have a reasonable excuse for refusing or failing to comply with the notice, the High Court may punish him as if he had been guilty of contempt of court.

8(1)A person shall not be required under paragraph 6 to produce or disclose a privileged communication.

(2)In sub-paragraph (1) “privileged communication” means a communication—

(a)between a professional legal adviser and his client, or

(b)made in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings,

which in proceedings in the High Court would be protected from disclosure on grounds of legal professional privilege.

9Before the Director, as the result of an investigation under paragraph 5, makes a decision that the exercise or proposed exercise of a function does not meet the competition test, he must—

(a)give written notice to the person or persons likely to be affected by the proposed decision, and

(b)give that person or those persons an opportunity to make representations.

Decisions

10When the Director makes a decision—

(a)on an application under paragraph 3, or

(b)after an investigation under paragraph 5,

he must publish his decision, together with his reasons for making it.

11If the Director has determined an application under paragraph 3 by making a decision that the exercise or proposed exercise of a function to which this Schedule applies meets the competition test, he is to take no further action under this Schedule with respect to it unless—

(a)he has reasonable grounds for believing that there has been a material change of circumstance since he made his decision, or

(b)he has a reasonable suspicion that the information on which he based his decision was incomplete, false or misleading in a material particular.

Enforcement of decisions

12(1)If the Director has made a decision that the exercise or proposed exercise of a function to which this Schedule applies does not meet the competition test, he may give to the authority or authorities by which it was or was to be exercised such directions as he considers appropriate.

(2)A direction under sub-paragraph (1) may (in particular)—

(a)in the case of a proposal to exercise a function, include provision prohibiting the exercise of the function in the manner proposed,

(b)in the case of the exercise of the function of making or varying a quality partnership scheme or a ticketing scheme, include provision requiring the variation or revocation of the scheme,

(c)in the case of the exercise of the function of inviting tenders under section 89(2) or 91(3) of the [1985 c. 67.] Transport Act 1985, include provision requiring the variation or withdrawal of the invitation, and

(d)in the case of the exercise of the function of accepting or not accepting a tender under section 89 or 91 of that Act, include provision requiring the variation or termination of any agreement entered into by accepting the tender or requiring the acceptance of any tender.

(3)A direction under sub-paragraph (1) must be given in writing.

(4)If an authority fails, without reasonable excuse, to comply with a direction under sub-paragraph (1), the Director may apply to the High Court for an order requiring the authority to comply with the direction within a time specified in the order.

(5)An order under sub-paragraph (4) may provide for all of the costs of, or incidental to, the application for the order to be borne by the authority.

Information

13(1)No information which—

(a)has been obtained by the Director in connection with his functions under this Schedule, and

(b)relates to the affairs of any individual or to any particular business,

is to be disclosed during the lifetime of that individual or while that business continues to be carried on, unless the condition mentioned in sub-paragraph (2) is satisfied.

(2)The condition is that consent to the disclosure has been obtained from—

(a)the person from whom the information was obtained, and

(b)if different, the individual to whose affairs the information relates or the person for the time being carrying on the business to which the information relates.

(3)Sub-paragraph (1) does not apply to a disclosure of information—

(a)made for the purpose of facilitating the performance of any function of the Director, a traffic commissioner or the Rail Regulator,

(b)made for the purpose of facilitating the performance of any function of the European Commission in respect of Community law about competition,

(c)made for the purpose of criminal proceedings in any part of the United Kingdom or in connection with the investigation of a criminal offence triable in any part of the United Kingdom, or

(d)made in compliance with the order of a court or tribunal.

(4)If information is disclosed to the public in circumstances in which the disclosure does not contravene sub-paragraph (1), that sub-paragraph does not prevent its further disclosure by any person.

(5)A person who contravenes this paragraph is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

14(1)If information is provided by a person to the Director in connection with his functions under this Schedule, the person is guilty of an offence if—

(a)the information is false or misleading in a material particular, and

(b)the person knows that it is or is reckless as to whether it is.

(2)If a person—

(a)provides any information to another person, knowing the information to be false or misleading in a material particular, or

(b)recklessly provides to another person any information which is false or misleading in a material particular,

knowing that the information is to be used for the purpose of providing information to the Director in connection with his functions under this Schedule, the person is guilty of an offence.

(3)A person guilty of an offence under this paragraph is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Defamation

15For the purposes of the law relating to defamation, absolute privilege attaches to any decision made or notice given by the Director in the exercise of any of his functions under this Schedule.

Fees

16(1)The Director may charge fees in connection with the exercise by him of any of his functions under this Schedule.

(2)Different fees may be charged in connection with different functions and in different circumstances.

(3)An application under paragraph 3 is not to be regarded as duly made unless any appropriate fee is paid.

Section 161.

SCHEDULE 11Minor and consequential amendments about local transport

Finance Act 1965 (c. 25)

1In section 92(8) of the Finance Act 1965 (grants towards duty charged on bus fuel), in the definition of “bus service”—

(a)in paragraph (a), after “Act” insert “or provided under a quality contract (within the meaning of Part II of the Transport Act 2000)”, and

(b)in paragraph (b), for “II of that Act” substitute “II of the [1985 c. 67.] Transport Act 1985”.

Transport Act 1968 (c. 73)

2The Transport Act 1968 has effect subject to the following amendments.

3(1)Section 9A (general functions of Passenger Transport Authorities and Executives) is amended as follows.

(2)Omit subsections (1) and (2).

(3)For subsection (3) substitute—

(3)It shall be the duty of the Executive for each passenger transport area in England to secure the provision of such public passenger transport services as the Authority for the area consider it appropriate for the Executive to secure for meeting any public transport requirements within the area which in the Authority’s view would not be met apart from any action taken by the Executive for that purpose.

(3A)The Authority shall seek and have regard to the advice of the Executive for their area in determining which services it would be appropriate for the Executive to secure under subsection (3) of this section.

(4)In subsection (6), for the words following paragraph (b) substitute “to have regard to a combination of economy, efficiency and effectiveness.”

(5)In subsection (7), insert at the end “and to the bus strategy made jointly by the Authority and the councils for the metropolitan districts comprised in the area.”

4Omit section 9B (consultation and publicity with respect to policies as to services).

Local Government Act 1972 (c. 70)

5In section 97 of the Local Government Act 1972 (exceptions from prohibition on member of local authority discussing and voting on matters in which he has pecuniary interest), after subsection (6) insert—

(7)Section 94 above shall not prohibit a director of a public transport company, or a subsidiary of such a company, who is neither—

(a)paid for acting as such; nor

(b)an employee of the public transport company or subsidiary,

from taking part in the consideration or discussion of, or from voting on any question with respect to, a local transport plan or bus strategy; and in this subsection “public transport company” and “subsidiary” have the same meanings as in Part IV of the [1985 c. 67.] Transport Act 1985.

Road Traffic Regulation Act 1984 (c. 27)

6The Road Traffic Regulation Act 1984 has effect subject to the following amendments.

7In section 1 (traffic regulation orders), after subsection (3) insert—

(3A)A local traffic authority may make a traffic regulation order in respect of a road in relation to which the Secretary of State or the National Assembly for Wales is the traffic authority if—

(a)the order is required for the provision of facilities pursuant to a quality partnership scheme under Part II of the Transport Act 2000, and

(b)the Secretary of State, or the National Assembly for Wales, consents.

8(1)Paragraph 27 of Schedule 9 (variation and revocation of orders) is amended as follows.

(2)In sub-paragraph (1), for “sub-paragraph (2)” substitute “sub-paragraphs (2) and (3)”.

(3)After sub-paragraph (2) insert—

(3)Where an order is required for the provision of facilities pursuant to a quality partnership scheme made under Part II of the Transport Act 2000 by more than one authority—

(a)it may not be varied or revoked by virtue of this paragraph by the Secretary of State or the National Assembly for Wales unless he or it has consulted the other authority or authorities who made the scheme, and

(b)it may not be varied or revoked by virtue of this paragraph by any other authority without the consent of that other authority or those other authorities.

Transport Act 1985 (c. 67)

9The Transport Act 1985 has effect subject to the following amendments.

10(1)Section 26(1) (conditions attached to PSV operator’s licence) is amended as follows.

(2)In paragraph (b), after “section” insert “or section 118(4) or 129(1)(b) of the Transport Act 2000”.

(3)After that paragraph insert ; or

(ba)the operator has failed to comply with section 138 or 140(3) of that Act;.

11(1)Section 63 (functions of local councils with respect to passenger transport in areas other than passenger transport areas) is amended as follows.

(2)In subsection (1), omit paragraph (b) and the word “and” before it.

(3)In subsection (3)—

(a)omit “(1)(b) or” and “(1)(a) or”,

(b)in paragraph (a), omit “as a local education authority or (as the case may be)”, and

(c)in paragraph (b), omit “social services or (as the case may be)”.

(4)In subsection (7), for the words from “so to conduct” to the end substitute “to have regard to a combination of economy, efficiency and effectiveness.”

(5)In subsection (8), at end insert “and to the appropriate bus strategy.”

(6)After that subsection insert—

(8A)In subsection (8) “the appropriate bus strategy” means—

(a)in the case of a council which is a local transport authority (within the meaning of section 108(4) of the Transport Act 2000), their bus strategy;

(b)in the case of a district council which is not such an authority, the bus strategy of the council for the county in which the district is situated.

12(1)Section 64 (consultation and publicity with respect to policies as to services) is amended as follows.

(2)In subsection (1)—

(a)for “63(1)(b) or (2)(b)” substitute “63(2)(b)”,

(b)for “either of those provisions” substitute “that provision”, and

(c)omit the words following paragraph (b).

(3)In subsection (2), omit “under section 63(1)(a) or (as the case may be)”.

13In section 74 (directors of public transport companies), after subsection (3) insert—

(3A)Subsection (3) above shall not prohibit a person from taking part in the consideration or discussion of, or from voting on any question with respect to, a local transport plan or bus strategy.

14In section 82 (bus stations: restrictions on discriminatory practices), after subsection (4) insert—

(4A)Nothing done pursuant to a quality partnership scheme under Part II of the Transport Act 2000 by—

(a)a Passenger Transport Executive,

(b)a local authority, or

(c)a person to whom subsection (3) above applies,

shall be taken to be discrimination prohibited by subsection (1) or (3) above.

15In section 93(7) (persons eligible to receive travel concessions under local scheme), for paragraphs (d) and (e) substitute—

(d)persons who are blind;

(e)persons who are partially sighted;

(ea)persons who are deaf;

(eb)persons who are without speech;

(ec)persons who have a disability, or have suffered an injury, which has a substantial and long-term adverse effect on their ability to walk;

(ed)persons who do not have arms or have long-term loss of the use of both arms;

(ee)persons who have a learning disability, that is, a state of arrested or incomplete development of mind which includes significant impairment of intelligence and social functioning;

(ef)persons who, if they applied for the grant of a licence to drive a motor vehicle under Part III of the [1988 c. 52.] Road Traffic Act 1988, would have their applications refused pursuant to section 92 of that Act (physical fitness) otherwise than on the ground of persistent misuse of drugs or alcohol;

(eg)any person travelling as the companion of a person who—

(i)is eligible to receive travel concessions by virtue of any other paragraph of this subsection; and

(ii)requires the assistance of a companion in order to travel on journeys on public passenger transport services;.

16In section 94(4) (definition of eligible service), for the words from “a service is” to the end substitute

“eligible service” means—

(a)until section 92 of the [1965 c. 25.] Finance Act 1965 (grants towards duty charged on bus fuel) ceases to have effect as a result of section 154(6) of the Transport Act 2000, a service qualifying for fuel duty grant, and

(b)after that time, a service using public service vehicles of a class specified in an order made by the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).

17In section 103(3) (no subsidies for concessions available under a scheme), insert at the end “or under section 145(1) of the Transport Act 2000.”

18(1)Section 104 (travel concessions on services provided by Passenger Transport Executives) is amended as follows.

(2)In subsection (1), for the words from “other than” to “that section” substitute “otherwise than in accordance with a scheme established under section 93 of this Act or in accordance with section 145(1) of the Transport Act 2000”.

(3)In subsection (2), after paragraph (a) insert—

(aa)in accordance with section 145(1) of the Transport Act 2000; or.

19In section 105(1) (travel concessions on services provided by local authorities), for the words “of any description” onwards substitute “in accordance with a scheme established under section 93 of this Act or in accordance with section 145(1) of the Transport Act 2000.”

20(1)Section 108 (grants for establishment of rural passenger services in Wales and Scotland) is amended as follows.

(2)In subsection (1), omit “Wales or”.

(3)In the sidenote, omit “Wales and”.

21Omit section 109 (transitional rural bus grants).

22(1)Section 111 (unregistered and unreliable local services: requirement to repay twenty per cent. of bus fuel duty grants) is amended as follows (until it ceases to have effect as a result of section 154(6)).

(2)For subsection (1) substitute—

(1)Where the traffic commissioner for any traffic area is satisfied that the operator of a local service has, without reasonable excuse—

(a)failed to operate a local service registered under section 6 of this Act;

(b)operated a local service in contravention of that section or section 118(4) or 129(1)(b) of the Transport Act 2000; or

(c)failed to comply with section 138 or 140(3) of that Act;

he may make a determination to that effect.

Greater London Authority Act 1999 (c. 29)

23In section 420(8) of the Greater London Authority Act 1999 (orders subject to annulment in pursuance of a resolution of either House of Parliament), after “235(4);” insert—

  • section 242(10);.

Section 191.

SCHEDULE 12Road user charging and workplace parking levy: financial provisions

Introductory

1(1)In this Schedule “relevant scheme” means a charging scheme or licensing scheme under this Part.

(2)In this Schedule—

(a)“the relevant authority”, in relation to a relevant scheme made by one authority, means the authority by which the scheme is made, and

(b)“the relevant authorities”, in relation to a relevant scheme made jointly by more than one authority, means the authorities by which the scheme is made.

Net proceeds

2(1)In this Schedule “net proceeds”, in relation to a relevant scheme and a financial year, means the amount (if any) by which—

(a)the amounts received under or in connection with the scheme which are attributable to the financial year, exceed

(b)the expenses incurred for or in connection with the scheme which are so attributable.

(2)For the purposes of this Schedule—

(a)the amounts received under or in connection with a relevant scheme, and

(b)the expenses incurred for or in connection with a relevant scheme,

and the extent to which they are attributable to any financial year, shall be determined in accordance with regulations made by the appropriate national authority.

(3)Regulations under sub-paragraph (2) may, in particular, provide that—

(a)any such costs of constructing, improving or maintaining roads in respect of which charges are imposed by trunk road charging schemes, and any such costs of managing traffic on those roads, as are specified by or determined in accordance with the regulations, or

(b)any such payments made for or in respect of the construction, improvement or maintenance of those roads, or the management of traffic on them, as are so specified or determined,

are to be regarded, to the extent so specified or determined, as expenses incurred for or in connection with the trunk road charging schemes.

(4)Where a trunk road charging scheme is made by virtue of section 167(2)(b), the relevant authority and the local traffic authority which requested the making of the scheme (or Transport for London, if it did) may agree that—

(a)the expenses incurred for or in connection with the trunk road charging scheme shall be taken to include specified expenses incurred for or in connection with the charging scheme in connection with which the trunk road charging scheme was requested, and

(b)the expenses incurred for or in connection with that other charging scheme shall be taken to include specified expenses incurred for or in connection with the trunk road charging scheme.

Apportionment

3(1)A relevant scheme which is—

(a)a joint local charging scheme or licensing scheme, or

(b)a joint local-London charging scheme or licensing scheme,

shall provide for the net proceeds of the scheme to be apportioned between the relevant authorities.

(2)Where a trunk road charging scheme is made by virtue of section 167(2)(b)—

(a)the trunk road charging scheme, or

(b)the charging scheme in connection with which the trunk road charging scheme was requested,

or both, may provide for the net proceeds of the scheme to be apportioned between the relevant authority and the local traffic authority which requested the making of the scheme (or Transport for London, if it did).

4References in the following provisions of this Schedule to an authority’s share of the net proceeds of a relevant scheme are—

(a)where the net proceeds of the scheme are apportioned as provided by paragraph 3, to so much of the net proceeds of the scheme as are apportioned to the authority, and

(b)otherwise, to the net proceeds of the scheme.

Accounts and funds

5Regulations made by the appropriate national authority may make provision for—

(a)the keeping of accounts relating to trunk road charging schemes, and

(b)the preparation and publication of statements of such accounts.

6(1)An account relating to a relevant scheme which is not a trunk road charging scheme shall be kept for each financial year by the relevant authority or jointly by the relevant authorities.

(2)A statement of every such account shall be prepared for each financial year by the relevant authority or authorities and published in the annual accounts of the relevant authority, or of each of the relevant authorities, for the financial year.

(3)Regulations made by the appropriate national authority may make—

(a)further provision relating to accounts required to be kept under this paragraph (including provision requiring or allowing the keeping of consolidated accounts relating to more than one relevant scheme), and

(b)further provision relating to the preparation and publication of statements of such accounts.

7(1)At the end of each financial year any deficit in an account required to be kept under paragraph 6 shall be made good by the relevant authority or authorities.

(2)Any surplus in such an account may (so far as not made available for any purpose in accordance with this Schedule) be applied by the relevant authority or authorities towards making good any amount used to make good a deficit in respect of the account in the ten years immediately preceding the financial year.

(3)So much of any surplus as remains after the application of sub-paragraph (2) shall be carried forward in the account to the next financial year.

(4)A relevant scheme made by more than one authority must make provision specifying or for determining—

(a)the proportion of any deficit which each authority shall make good, and

(b)the proportion of any surplus which each authority may apply in accordance with sub-paragraph (2).

(5)Any deficit required to be made good shall be made good—

(a)in the case of a Welsh county council or county borough council, from its general account,

(b)in the case of Transport for London, from its gross income, and

(c)in the case of any other non-metropolitan local traffic authority or London traffic authority, from its general fund.

Application of proceeds by non-metropolitan local traffic authorities

8(1)This paragraph applies to a non-metropolitan local traffic authority’s share of the net proceeds of any early relevant scheme during the initial period of the scheme.

(2)The share of the net proceeds is available only—

(a)for application by the authority for the purpose of directly or indirectly facilitating the achievement of policies in the authority’s local transport plan, or

(b)for application by any authority falling within sub-paragraph (3) selected by the authority whose share it is in accordance with sub-paragraph (4).

(3)The authorities which fall within this sub-paragraph are—

(a)other non-metropolitan local traffic authorities and

(b)London traffic authorities and the Greater London Authority.

(4)A share of the net proceeds of a relevant scheme is applied in accordance with this sub-paragraph if it is applied—

(a)by a non-metropolitan local traffic authority for the purpose of directly or indirectly facilitating the achievement of any policies in its local transport plan, or

(b)by a London traffic authority or the Greater London Authority in accordance with the transport strategy prepared and published under section 142 of the [1999 c. 29.] Greater London Authority Act 1999,

in a way which will benefit the whole or any part of the area of the non-metropolitan local traffic authority whose share it is.

(5)In this paragraph “early relevant scheme” means a relevant scheme which comes into force during the period of ten years beginning with the commencement of this Schedule.

(6)In this paragraph “the initial period”, in relation to an early relevant scheme, means—

(a)the period which begins with the date on which the relevant scheme comes into force and ends with the tenth financial year that commences on or after that date, or

(b)such longer period as may be specified in the case of the relevant scheme by the appropriate national authority.

(7)The appropriate national authority may by regulations make provision as to circumstances in which—

(a)the same scheme is to be regarded as continuing in force in spite of a variation of the scheme or the revocation and replacement (with or without modifications) of the scheme, or

(b)a different scheme is, or is not, to be regarded as coming into force,

for the purposes of determining when the initial period begins or expires in the case of a scheme.

9(1)Except where paragraph 8 applies, a non-metropolitan local traffic authority’s share of the net proceeds of a relevant scheme is available to be applied only as may be specified in, or determined in accordance with, regulations made by the appropriate national authority.

(2)Regulations under sub-paragraph (1) may include provision conferring a discretion on any person.

(3)The provision that may be made by regulations under sub-paragraph (1) includes provision for paragraph 8 to apply with the substitution for the number for the time being mentioned in sub-paragraph (5) of that paragraph of a number of years greater than ten.

(4)A share of the net proceeds of a relevant scheme may only be applied in accordance with regulations under sub-paragraph (1) in ways which provide value for money.

(5)Before making any regulations under sub-paragraph (1), the appropriate national authority shall make an assessment of—

(a)the likely amounts of the non-metropolitan local traffic authorities' shares of net proceeds of relevant schemes, and

(b)the potential for applying them in accordance with paragraph 8 in ways which provide value for money.

(6)The appropriate national authority may issue guidance with respect to the appraisal of whether any application by non-metropolitan local traffic authorities for any purpose of their shares of net proceeds of relevant schemes provides value for money; and non-metropolitan local traffic authorities shall, in determining how to apply such shares, have regard to any such guidance.

10(1)A relevant scheme made by one or more non-metropolitan local traffic authorities must include—

(a)a general plan relating to the application of their shares of the net proceeds of the relevant scheme during the opening ten year period, and

(b)a detailed programme for the application of their shares of the net proceeds of the relevant scheme during the opening transport plan period.

(2)In this Schedule—

(a)“the opening ten year period” means the period which begins with the date on which the relevant scheme comes into force and ends with the tenth financial year that commences on or after that date, and

(b)“the opening transport plan period” means the period which begins with that date and ends at the time by which local transport plans are next required to be replaced.

(3)The order making a scheme shall not come into force unless and until the general plan and detailed programme required by sub-paragraph (1) have been approved by the appropriate national authority.

11(1)If a relevant scheme made by one or more non-metropolitan local traffic authorities remains in force after the end of the opening transport plan period, the authority or each of the authorities shall include in its local transport plan from the time when it is next replaced (for so long as the scheme remains in force) a detailed programme for the application of its share of the net proceeds of the scheme.

(2)Any programme included in a local transport plan by virtue of sub-paragraph (1) in relation to a relevant scheme prevails over any conflicting provisions in the general plan included in the scheme pursuant to paragraph 10(1)(a).

(3)Except with the consent of the appropriate national authority in any particular case, a non-metropolitan local traffic authority may not apply its share of the net proceeds of a scheme for any purpose (other than making good any amount to the general fund or general account of the relevant authority which made the scheme) in any financial year beginning after the end of the opening plan period unless it is complying with sub-paragraph (1).

Application of proceeds by London traffic authorities

12(1)The share of the net proceeds of a relevant scheme of a London traffic authority is available only for application in accordance with regulations made by the Secretary of State.

(2)Regulations under sub-paragraph (1) shall provide for—

(a)paragraphs 16 to 24 of Schedule 23 to the [1999 c. 29.] Greater London Authority Act 1999, or

(b)paragraphs 22 to 30 of Schedule 24 to that Act,

to apply in relation to a relevant scheme with any such modifications as the Secretary of State considers appropriate.

(3)Before making regulations under sub-paragraph (1) the Secretary of State shall consult the Greater London Authority.

Application of proceeds by Secretary of State and Assembly

13(1)In the case of a trunk road charging scheme—

(a)which is made by virtue of paragraph (a) of subsection (2) of section 167, or

(b)which is made by virtue of paragraph (b) of that subsection and comes into force during the period of ten years beginning with the commencement of this Schedule,

the relevant authority’s share of the net proceeds is available only for application for the purpose of directly or indirectly facilitating the achievement of any policies or proposals relating to transport.

(2)The appropriate national authority may by regulations make provision for sub-paragraph (1)(b) to apply with the substitution for the number of years for the time being mentioned in it of a number of years greater than ten.

(3)Sub-paragraph (1) applies during the period of ten years beginning with the coming into force of a scheme.

(4)The appropriate national authority may by regulations make provision as to circumstances in which—

(a)the same scheme is to be regarded as continuing in force in spite of a variation of the scheme or the revocation and replacement (with or without modifications) of the scheme, or

(b)a different scheme is, or is not, to be regarded as coming into force,

for the purposes of determining when the period specified in sub-paragraph (3) begins or expires in the case of a scheme.

(5)Except where sub-paragraph (1) applies, the relevant authority’s share of the net proceeds of a trunk road charging scheme is available to be applied only as may be specified in, or determined in accordance with, regulations made by the appropriate national authority.

(6)The provision that may be made by regulations under sub-paragraph (5) includes provision for sub-paragraph (3) to apply with the substitution for the number of years for the time being mentioned in it of a number of years greater than ten.

Section 199.

SCHEDULE 13Amendments of Schedules 23 and 24 to Greater London Authority Act

Road user charging

1Schedule 23 to the [1999 c. 29.] Greater London Authority Act 1999 (road user charging in Greater London) has effect subject to the following amendments.

2(1)Paragraph 1 (interpretation) is amended as follows.

(2)In sub-paragraph (1), in the definition of “net proceeds”, for the words from “, means” to the end substitute and a financial year, means the amount (if any) by which—

(a)the amounts received under or in connection with the scheme which are attributable to the financial year, exceed

(b)the expenses incurred for or in connection with the scheme which are so attributable;.

(3)In that sub-paragraph, after the definition of “prescribed”, insert—

“registered keeper”, in relation to a charge imposed in respect of a motor vehicle, means the person in whose name the vehicle was registered under the [1994 c. 22.] Vehicle Excise and Registration Act 1994 at the time of the act, omission, event or circumstances in respect of which the charge is imposed;.

(4)In that sub-paragraph, in the definition of “regulations”, after “means” insert “(except where otherwise provided)”.

(5)In that sub-paragraph, in the definition of “traffic sign”, for “same meaning as in the [1984 c. 27.] Road Traffic Regulation Act 1984 (see in particular section 64 of that Act)” substitute “meaning given by section 64 of the Road Traffic Regulation Act 1984 but also includes signposts and other signs and notices included in that term by section 71(2) of that Act”.

(6)For sub-paragraph (2) substitute—

(2)For the purposes of this Schedule—

(a)the amounts received under or in connection with a charging scheme, and

(b)the expenses incurred for or in connection with such a scheme,

and the extent to which they are attributable to any financial year, shall be determined in accordance with regulations under this sub-paragraph.

3(1)Paragraph 4 (making of charging scheme) is amended as follows.

(2)After paragraph (a) of sub-paragraph (3) insert—

(aa)require such an authority to publish its proposals for the scheme and to consider objections to the proposals;.

(3)After paragraph (d) of that sub-paragraph insert—

(da)require the authority by whom any such order is made to publish notice of the order and of its effect;.

(4)Omit paragraph (e) of that sub-paragraph.

(5)After that sub-paragraph insert—

(4)Subsections (2) and (3) of section 250 of the [1972 c. 70.] Local Government Act 1972 (witnesses at local inquiries) apply in relation to any inquiry held by virtue of sub-paragraph (3)(b) above.

(5)Where an inquiry is held by virtue of sub-paragraph (3)(b) above for the purposes of any order containing a charging scheme—

(a)the costs of the inquiry shall be paid by the charging authority; and

(b)the parties at the inquiry shall bear their own costs.

(6)The charging authority may enter any land, and exercise any other powers which may be necessary, for placing and maintaining, or causing to be placed and maintained, traffic signs in connection with the charging scheme.

4In sub-paragraph (2) of paragraph 11 (exemptions, reduced rates etc.), after “above” insert “and to paragraphs 4 and 6 above”.

5After that paragraph insert—

Documents and equipment

11AA charging scheme may require—

(a)documents to be displayed while a motor vehicle is on a road in respect of which charges are imposed; or

(b)equipment to be carried in or fitted to a motor vehicle while it is on such a road.

6(1)Paragraph 12 (penalty charges) is amended as follows.

(2)In sub-paragraph (1), for “, notification, payment, adjudication or enforcement” substitute “and payment”.

(3)After sub-paragraph (2) insert—

(3)The Lord Chancellor may make regulations about the notification, adjudication and enforcement of penalty charges.

7For paragraph 13 substitute—

13Charges imposed in respect of any motor vehicle by a charging scheme (including penalty charges imposed in respect of any motor vehicle) shall be paid—

(a)by the registered keeper of the motor vehicle; or

(b)in prescribed circumstances, by such person as is prescribed.

8In paragraph 14 (installation of equipment), for the words from “install” to “used or” substitute—

(a)install and maintain, or authorise the installation and maintenance of, any equipment; or

(b)construct and maintain, or authorise the construction and maintenance of, buildings or other structures,

used or.

9(1)Paragraph 15 (accounts and funds) is amended as follows.

(2)In sub-paragraphs (1) and (2), for “of their income and expenditure in respect of” substitute “relating to”.

(3)In sub-paragraph (3)—

(a)for the words from the beginning to “year, each” substitute “Each”, and

(b)for “that year” substitute “each financial year”.

(4)After sub-paragraph (4) insert—

(4A)Regulations may make further provision relating to—

(a)accounts required to be kept under sub-paragraph (1) or (2) above (including provision requiring or allowing the keeping of consolidated accounts relating to more than one charging scheme); and

(b)the preparation and publication of statements of such accounts.

(5)In sub-paragraph (5)(b), after “account” insert “(after the application of any of the net proceeds in accordance with the following provisions)”.

10(1)Paragraph 25 (offences) is amended as follows.

(2)In sub-paragraph (1)—

(a)insert “or” at the end of paragraph (a), and

(b)omit paragraph (c) and the word “or” before it.

(3)After that sub-paragraph insert—

(1A)A person who makes or uses any false document with intent to avoid payment of, or being identified as having failed to pay, a charge imposed by a charging scheme or a penalty charge is guilty of an offence.

(4)In sub-paragraph (2), after “sub-paragraph (1)” insert “or (1A)”.

(5)After that sub-paragraph insert—

(3)A person is guilty of an offence if he removes a penalty charge notice which has been fixed to a motor vehicle in accordance with regulations under paragraph 12 above unless—

(a)he is the registered keeper of the vehicle or a person using the vehicle with his authority; or

(b)he does so under the authority of the registered keeper or such a person or of the charging authority.

(4)A person guilty of an offence under sub-paragraph (3) above shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

11(1)Paragraph 26 (examination of motor vehicles etc.) is amended as follows.

(2)In sub-paragraph (1)(b)(iii), for “unlawfully” substitute “with intent to avoid payment of, or being identified as having failed to pay, a charge”.

(3)For sub-paragraph (2) substitute—

(2)Regulations may make provision conferring power on any person authorised in writing by the charging authority to enter a motor vehicle where he has reasonable grounds for suspecting, in relation to a motor vehicle which is on a road, that—

(a)any equipment required to be carried in or fitted to the motor vehicle while it is on a road in respect of which charges are imposed has been interfered with with intent to avoid payment of, or being identified as having failed to pay, a charge imposed by the charging scheme; or

(b)there is in the motor vehicle a false document which has been made or used with intent to avoid payment of, or being identified as having failed to pay, such a charge.

(4)After that sub-paragraph insert—

(3)A person who intentionally obstructs a person exercising any power conferred on him by virtue of sub-paragraph (2) above is guilty of an offence.

(4)A person guilty of an offence under sub-paragraph (3) above shall be liable on summary conviction to—

(a)a fine not exceeding level 5 on the standard scale, or

(b)imprisonment for a term not exceeding six months,

or to both.

(5)Regulations may make provision conferring power on any person authorised in writing by the charging authority to seize anything (if necessary by detaching it from a motor vehicle) and detain it as evidence of the commission of an offence under paragraph 25 above.

12(1)Paragraph 27 (removal or immobilisation of motor vehicles) shall be renumbered as sub-paragraph (1) of that paragraph and amended as follows.

(2)After paragraph (a) insert—

(aa)the fixing of immobilisation notices to motor vehicles to which an immobilisation device has been fitted;.

(3)Insert at the end ; and

(e)the sale or destruction of motor vehicles not released.

(2)A person who removes or interferes with an immobilisation notice in contravention of provision made by virtue of sub-paragraph (1) above is guilty of an offence.

(3)A person who removes or attempts to remove an immobilisation device fixed to a motor vehicle in accordance with provision made by virtue of sub-paragraph (1) above in contravention of such provision is guilty of an offence.

(4)A person who intentionally obstructs a person exercising any power conferred on him by provision made by virtue of sub-paragraph (1) above is guilty of an offence.

(5)A person guilty of an offence under sub-paragraph (2) above shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(6)A person guilty of an offence under sub-paragraph (3) or (4) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

13In paragraph 28 (determination of disputes and appeals), for “Regulations may” substitute “The Lord Chancellor may by regulations”.

14In paragraph 29(6) (approval of equipment), for the words after “regulations” substitute “under section 176(2) of the Transport Act 2000.”

15In paragraph 30 (evidence), for “Regulations may” substitute “The Lord Chancellor may by regulations”.

16In paragraph 34 (guidance), insert at the end—

(3)Guidance issued under this paragraph shall be published in such manner as the Authority consider appropriate; and the Authority may at any time vary or revoke such guidance.

17After that paragraph insert—

Information

34A(1)Information obtained by—

(a)any Minister of the Crown or government department, or

(b)any local authority or other statutory body,

may be disclosed to a charging authority for or in connection with the exercise of any of their functions with respect to a charging scheme.

(2)Information obtained by a charging authority for or in connection with any of their functions other than their functions with respect to a charging scheme may be used by the authority for or in connection with the exercise of any of their functions with respect to a charging scheme.

(3)Any information—

(a)which has been or could be disclosed to a charging authority under sub-paragraph (1) above for or in connection with the exercise of any of their functions with respect to a charging scheme, or

(b)which has been or could be used by an authority by virtue of sub-paragraph (2) above for or in connection with the exercise of any of those functions,

may be disclosed to any person with whom the authority has entered into arrangements under paragraph 32(b) above.

(4)Information disclosed to a person under sub-paragraph (3) above—

(a)may be disclosed to any other person for or in connection with the charging scheme; but

(b)may not be used (by him or any other person to whom it is disclosed under paragraph (a) above) otherwise than for or in connection with the charging scheme.

18In paragraph 38 (variation and revocation of charging schemes)—

(a)omit “, exercisable in the same manner, and subject to the same conditions and limitations,”, and

(b)insert at the end “; and paragraph 4 above (apart from sub-paragraphs (3)(f) and (6)) applies in relation to the variation or revocation of a charging scheme as to the making of a charging scheme.”

Workplace parking levy

19Schedule 24 to the [1999 c. 29.] Greater London Authority Act 1999 (workplace parking levy in Greater London) has effect subject to the following amendments.

20(1)Paragraph 1 (interpretation) is amended as follows.

(2)In sub-paragraph (1), in the definition of “licence”, omit “by the occupier of those premises”.

(3)In that sub-paragraph, in the definition of “net proceeds”, for the words from “, means” to the end substitute and a financial year, means the amount (if any) by which—

(a)the amounts received under or in connection with the scheme which are attributable to the financial year, exceed

(b)the expenses incurred for or in connection with the scheme which are so attributable;.

(4)In that sub-paragraph, omit the definition of “occupier”.

(5)In that sub-paragraph, in the definition of “regulations”, after “means” insert “(except where otherwise provided)”.

(6)For sub-paragraph (2) substitute—

(2)For the purposes of this Schedule—

(a)the amounts received under or in connection with a licensing scheme, and

(b)the expenses incurred for or in connection with such a scheme,

and the extent to which they are attributable to any financial year, shall be determined in accordance with regulations under this sub-paragraph.

21In paragraph 3(1) (provision of workplace parking places)—

(a)for the words from “the cases” to “time being” substitute “a workplace parking place is provided at any premises at any time if a parking place provided at the premises is at that time”, and

(b)for paragraph (d) substitute—

(d)where a body whose affairs are controlled by its members is a relevant person, by a member of the body engaged in the carrying on of any business of the body,.

22(1)Paragraph 7 (making of licensing scheme) is amended as follows.

(2)After paragraph (a) of sub-paragraph (3) insert—

(aa)require such an authority to publish its proposals for the scheme and to consider objections to the proposals;.

(3)After paragraph (d) of that sub-paragraph insert—

(da)require the authority by whom any such order is made to publish notice of the order and of its effect.

(4)Omit paragraph (e) of that sub-paragraph.

(5)After that sub-paragraph insert—

(4)Subsections (2) and (3) of section 250 of the [1972 c. 70.] Local Government Act 1972 (witnesses at local inquiries) apply in relation to any inquiry held by virtue of sub-paragraph (3)(b) above.

(5)Where an inquiry is held by virtue of sub-paragraph (3)(b) above for the purposes of any order containing a licensing scheme—

(a)the costs of the inquiry shall be paid by the licensing authority; and

(b)the parties at the inquiry shall bear their own costs.

23For paragraph 15 substitute—

15A licence may not be granted for a period of more than one year.

24Renumber paragraph 16 (licensing: procedure) as sub-paragraph (1) of that paragraph and after that sub-paragraph insert—

(2)A person who intentionally provides false or misleading information in or in connection with an application for a licence is guilty of an offence and liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum; or

(b)on conviction on indictment, to a fine.

25In paragraph 17(3) and (4) (exemptions, reduced rates etc.), after “(2) above” insert “and to paragraphs 7 and 9 above”.

26(1)Paragraph 18 (penalty charges) is amended as follows.

(2)In sub-paragraph (1), for “, notification, payment, adjudication or enforcement” substitute “and payment”.

(3)After sub-paragraph (2) insert—

(3)The Lord Chancellor may make regulations about the notification, adjudication and enforcement of penalty charges.

27For paragraph 19 substitute—

19Charges imposed in respect of any premises by a licensing scheme (including penalty charges imposed in respect of any premises) shall be paid—

(a)by the occupier of the premises; or

(b)in prescribed circumstances, by such person as is prescribed.

28In paragraph 20 (determination of disputes and appeals), for “Regulations may” substitute “The Lord Chancellor may by regulations”.

29(1)Paragraph 21 (accounts and funds) is amended as follows.

(2)In sub-paragraphs (1) and (2), for “of their income and expenditure in respect of” substitute “relating to”.

(3)In sub-paragraph (3)—

(a)for the words from the beginning to “year, each” substitute “Each”, and

(b)for “that year” substitute “each financial year”.

(4)After sub-paragraph (4) insert—

(4A)Regulations may make further provision relating to—

(a)accounts required to be kept under sub-paragraph (1) or (2) above (including provision requiring or allowing the keeping of consolidated accounts relating to more than one licensing scheme); and

(b)the preparation and publication of statements of such accounts.

(5)In sub-paragraph (5)(b), after “account” insert “(after the application of any of the net proceeds in accordance with the following provisions)”.

30In paragraph 31 (rights of entry)—

(a)in sub-paragraph (4), for “wilfully” substitute “intentionally” and for “level 5 on the standard scale” substitute “the statutory maximum”, and

(b)in sub-paragraph (6), for “(7)” substitute “(5)”.

31In paragraph 32 (evidence), for “Regulations may” substitute “The Lord Chancellor may by regulations”.

32In paragraph 35 (guidance), insert at the end—

(3)Guidance issued under this paragraph shall be published in such manner as the Authority consider appropriate; and the Authority may at any time vary or revoke such guidance.

33After that paragraph insert—

Information

35A(1)Information obtained by—

(a)any Minister of the Crown or government department, or

(b)any local authority or other statutory body,

may be disclosed to a licensing authority for or in connection with the exercise of any of their functions with respect to a licensing scheme.

(2)Information obtained by a licensing authority for or in connection with any of their functions other than their functions with respect to a licensing scheme may be used by the authority for or in connection with the exercise of any of their functions with respect to a licensing scheme.

(3)Any information—

(a)which has been or could be disclosed to a licensing authority under sub-paragraph (1) above for or in connection with the exercise of any of their functions with respect to a licensing scheme, or

(b)which has been or could be used by an authority by virtue of sub-paragraph (2) above for or in connection with the exercise of any of those functions,

may be disclosed to any person with whom the authority has entered into arrangements under paragraph 33(b) above.

(4)Information disclosed to a person under sub-paragraph (3) above—

(a)may be disclosed to any other person for or in connection with the licensing scheme; but

(b)may not be used (by him or any other person to whom it is disclosed under paragraph (a) above) otherwise than for or in connection with the licensing scheme.

34In paragraph 39 (variation and revocation of licensing schemes)—

(a)omit “, exercisable in the same manner, and subject to the same conditions and limitations,”, and

(b)insert at the end “; and paragraph 7 above applies in relation to the variation or revocation of a licensing scheme as to the making of a licensing scheme.”

Section 204.

SCHEDULE 14Strategic Rail Authority

Part IMembers and staff

Tenure of members

1(1)Subject to the following provisions of this paragraph, members of the Authority shall hold and vacate office as members in accordance with the terms of their appointments.

(2)A member of the Authority shall be eligible for re-appointment on ceasing to be a member.

(3)A member of the Authority may at any time resign from membership by giving notice to the Secretary of State.

(4)The Secretary of State may terminate the appointment of a person as a member of the Authority if satisfied—

(a)that the person has been absent from meetings of the Authority for a period of more than three months without the permission of the Authority,

(b)that the person has been adjudged bankrupt, that the person’s estate has been sequestrated or that the person has made a composition or arrangement with, or granted a trust deed for, creditors, or

(c)that the person is unable or unfit to carry out the functions of a member.

Member appointed to chair Authority and deputy

2(1)Subject to the following provisions of this paragraph—

(a)the member appointed to chair the Authority, and

(b)any member appointed to act as deputy to that member,

shall hold and vacate office as such in accordance with the terms of their appointments.

(2)A member appointed to chair the Authority, or to act as deputy to that member, shall be eligible for re-appointment on ceasing to hold office as such (if still a member of the Authority).

(3)A member so appointed may at any time resign from office as such by giving notice to the Secretary of State.

(4)A member so appointed shall vacate office as such on ceasing to be a member of the Authority.

(5)When a member—

(a)is appointed to chair the Authority or to act as deputy to that member, or

(b)ceases to hold office as such,

the Secretary of State may vary the terms of the member’s appointment as a member of the Authority so as to alter the date of cessation of membership.

Remuneration, pensions etc. for members

3(1)The Authority shall pay to its members—

(a)any such remuneration, and

(b)any such travelling and other allowances,

as may be determined by the Secretary of State.

(2)The Authority shall, if required to do so by the Secretary of State—

(a)pay such pension, allowances or gratuities as may be determined by the Secretary of State to or in respect of a person who is or has been a member of the Authority,

(b)make such payments as may be determined by the Secretary of State towards provision for the payment of a pension, allowances or gratuities to or in respect of a person who is or has been a member of the Authority, or

(c)provide and maintain such schemes (whether contributory or not) as may be determined by the Secretary of State for the payment of pensions, allowances or gratuities to or in respect of persons who are or have been members of the Authority.

(3)If, when a person ceases to hold office as a member of the Authority, the Secretary of State determines that there are special circumstances which make it right that the person should receive compensation, the Authority shall pay such compensation as may be determined by the Secretary of State.

Staff

4(1)The Authority may employ such persons (in addition to the chief executive) as it may determine.

(2)The terms of employment of employees of the Authority shall be such as the Authority may determine.

5(1)The Authority may, in particular—

(a)pay such pensions, allowances or gratuities as it may determine to or in respect of persons who are or have been employees of the Authority,

(b)make such payments as it may determine towards provision for the payment of pensions, allowances or gratuities to or in respect of such persons, or

(c)provide and maintain such schemes (whether contributory or not) as it may determine for the payment of pensions, allowances or gratuities to or in respect of such persons.

(2)References in sub-paragraph (1) to pensions, allowances or gratuities include pensions, allowances or gratuities by way of compensation in respect of loss of employment or loss or diminution of emoluments.

6(1)The persons to whom section 1 of the [1972 c. 11.] Superannuation Act 1972 applies (persons to or in respect of whom benefits may be provided by schemes under that section) shall include employees of the Authority; and, accordingly, in Schedule 1 to that Act, at the appropriate point in the list of “Other Bodies”, insert—

The Strategic Rail Authority.

(2)If a person who is, by reference to employment by the Authority, a participant in a scheme under section 1 of the Superannuation Act 1972 becomes a member of the Authority, the Minister for the Civil Service may determine that the person’s term of office as such shall be treated for the purposes of the scheme as employment by the Authority.

(3)The Authority shall pay to the Minister for the Civil Service, at such times as he may direct, such sums as he may determine in respect of any increase attributable to sub-paragraph (1) or (2) in the sums payable out of money provided by Parliament under the [1972 c. 11.] Superannuation Act 1972.

(4)The Minister for the Civil Service may, to such extent and subject to such conditions as he thinks fit, delegate to the Authority the function of administering a scheme under section 1 of the Superannuation Act 1972, so far as relating to employees of the Authority.

(5)If he does so, the Authority may, to such extent and subject to such conditions as it may determine, authorise the exercise of that function by, or by employees of, any person.

(6)Where a person is authorised under sub-paragraph (5) to exercise that function, anything done or omitted to be done by or in relation to him (or an employee of his) in, or in connection with, the exercise or purported exercise of the function shall be treated for all purposes as done or omitted to be done by or in relation to the Authority.

(7)Sub-paragraph (6) does not apply for the purposes of—

(a)any criminal proceedings against the authorised person (or an employee of his), or

(b)any contract between him and the Authority, so far as relating to the function.

Part IIFunding

Government grants

7The Secretary of State may make to the Authority grants of such amounts, on such terms, as he may determine.

Borrowing

8(1)The Authority is entitled to borrow in accordance with the following provisions of this paragraph, but not otherwise.

(2)Subject to sub-paragraph (5), the Authority may borrow from the Secretary of State such sums in sterling as it may require for meeting its obligations and carrying out its functions.

(3)Subject to sub-paragraphs (4) and (5), the Authority may borrow temporarily in sterling (by way of overdraft or otherwise) from persons other than the Secretary of State such sums as it may require for meeting its obligations and carrying out its functions.

(4)Borrowing under sub-paragraph (3) requires the consent of the Secretary of State which will not be given without the approval of the Treasury.

(5)The Authority may not borrow if the effect would be—

(a)to take the aggregate amount outstanding in respect of the principal of sums borrowed by it over its borrowing limit, or

(b)to increase the amount by which the aggregate amount so outstanding exceeds that limit.

(6)The Authority’s borrowing limit is—

(a)£3 billion, or

(b)such greater sum as the Secretary of State may, with the approval of the Treasury, specify by order made by statutory instrument.

(7)An order under sub-paragraph (6)(b) shall not be made unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

Terms of government loans

9(1)The approval of the Treasury is needed for the making of any loan to the Authority by the Secretary of State.

(2)Any loan made to the Authority by the Secretary of State shall be repaid to the Secretary of State at such times and by such methods, and interest on the loan shall be paid to him at such rates and at such times, as he may with the approval of the Treasury from time to time determine.

(3)If in any financial year the Secretary of State makes a loan to the Authority, he shall—

(a)prepare an account, and

(b)send that account to the Comptroller and Auditor General before the end of September in the following financial year.

(4)The account shall show—

(a)the amount outstanding at the end of the previous financial year in respect of the principal of sums lent by the Secretary of State to the Authority,

(b)the amount of the sums lent by the Secretary of State to the Authority in the current financial year,

(c)the amount of any loan repayments made to the Secretary of State by the Authority in that financial year, and

(d)the amount outstanding at the end of that financial year in respect of the principal of sums lent by the Secretary of State to the Authority;

and the form of the account and the manner of preparing it shall be such as the Treasury may direct.

(5)The Comptroller and Auditor General shall examine, certify and report on each account sent to him under this paragraph and shall lay copies of it and of his report before each House of Parliament.

Government guarantees

10(1)The Secretary of State may, with the approval of the Treasury, guarantee, in such manner and on such conditions as he may consider appropriate—

(a)the repayment of the principal of,

(b)the payment of interest on, and

(c)the discharge of any other financial obligation in connection with,

any sum which the Authority borrows from any person other than the Secretary of State.

(2)Where the Secretary of State gives a guarantee under this paragraph he shall, as soon after giving it as is reasonably practicable, lay a statement of the guarantee before each House of Parliament.

(3)Where any sum is paid out for fulfilling a guarantee under this paragraph, the Secretary of State shall, as soon as reasonably practicable after the end of each financial year—

(a)beginning with that in which the sum is paid out, and

(b)ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged,

lay before each House of Parliament a statement relating to that sum.

(4)Where any sums are paid out for fulfilling a guarantee under this paragraph, the Authority shall make to the Secretary of State, at such times and in such manner as he may from time to time direct—

(a)payments of such amounts as he may so direct in or towards repayment of the sums so paid out, and

(b)payments of interest, at such rate as he may so direct, on what is outstanding for the time being in respect of sums so paid out.

(5)The approval of the Treasury shall be required for the giving of a direction under sub-paragraph (4).

Accounts and audit

11(1)The Authority shall—

(a)keep proper accounts and proper accounting records, and

(b)prepare in respect of each financial year a statement of accounts giving a true and fair view of the state of affairs and the income and expenditure of the Authority.

(2)Every statement of accounts prepared under sub-paragraph (1)(b) shall comply with any requirement which the Secretary of State has, with the approval of the Treasury, notified in writing to the Authority and which relates to—

(a)the information to be contained in the statement,

(b)the manner in which that information is to be presented, or

(c)the methods and principles according to which the statement is to be prepared.

12(1)The accounts of the Authority relating to each financial year shall be audited by the Comptroller and Auditor General who shall send a copy of his report on them to the Authority; and for this purpose “accounts” includes the statement of accounts prepared under paragraph 11(1)(b) in respect of the financial year.

(2)The Authority shall send—

(a)a copy of the accounts audited under sub-paragraph (1), and

(b)the report made on them by the Comptroller and Auditor General,

to the Secretary of State who shall lay a copy of each of them before each House of Parliament.

Direction requiring payment to Secretary of State

13(1)The Secretary of State may, after consultation with the Treasury, give a direction to the Authority requiring it to pay to him an amount equal to the whole or such part as may be specified in the direction of any sum, or any sum of a description, so specified which is or has been received by the Authority.

(2)Where it appears to the Secretary of State that the Authority has a surplus, whether on capital or revenue account, he may, after consultation with the Treasury, direct the Authority to pay to him such amount not exceeding the amount of that surplus as may be specified in the direction.

(3)The Secretary of State shall consult the Authority before giving a direction under this paragraph.

Taxation

14(1)The Secretary of State may make regulations for the purpose of eliminating, or reducing to such extent as may be prescribed, the Authority’s liability to tax in respect of—

(a)income and chargeable gains, or

(b)any prescribed class of income or chargeable gains.

(2)The regulations may, in particular, provide—

(a)for any elimination or reduction of liability to tax conferred by virtue of sub-paragraph (1) to be subject to prescribed conditions (including conditions requiring prescribed activities of the Authority to be carried out by persons other than the Authority), and

(b)for transactions entered into by the Authority not to be invalidated merely by reason of a contravention of any such conditions.

(3)The regulations may—

(a)for purposes connected with any elimination or reduction of liability to tax conferred by virtue of sub-paragraph (1), apply or modify any provision made by or under the Corporation Tax Acts (including provision made by Schedule 26),

(b)make different provision for different cases, and

(c)include such incidental, consequential, supplementary and transitional provision and savings as the Secretary of State may consider appropriate.

(4)Regulations under this paragraph—

(a)shall be made by statutory instrument, and

(b)require the consent of the Treasury.

(5)No regulations shall be made under this paragraph unless a draft of the statutory instrument containing the regulations has been laid before, and approved by a resolution of, the House of Commons.

Interpretation

15In this Part—

  • “accounting records” includes all books, papers and other records of the Authority relating to, or to matters dealt with in, the accounts required to be kept by the Authority, and

  • “financial year” means a period beginning with 1st April (or, in the case of the first financial year of the Authority, with the day on which the Authority is established) and ending with the next 31st March.

Part IIIFinancial framework and information

Financial framework

16(1)The Secretary of State shall prepare, and may from time to time revise, a document to be known as the Authority’s financial framework.

(2)The Authority’s financial framework shall specify rules and principles according to which the Authority is to exercise its functions in relation to—

(a)financial matters, and

(b)matters relating to its employees.

(3)The Authority shall not exercise any of its functions in a manner which is inconsistent with the Authority’s financial framework.

(4)A transaction entered into by the Authority is not invalidated merely by reason of a contravention by the Authority of sub-paragraph (3); and this sub-paragraph applies whether or not any person who entered into the transaction with the Authority enquired whether the Authority was acting in contravention of that sub-paragraph.

Information

17The Authority shall give to the Secretary of State information, advice and assistance about any matter in respect of which any function of the Authority is exercisable if the Authority considers it appropriate, or is requested by the Secretary of State, to do so.

Part IVProcedure

Introductory

18Subject to the following provisions of this Part, the Authority may regulate its own procedure (including quorum).

Committees and sub-committees

19(1)The Authority may establish committees and any committee of the Authority may establish sub-committees.

(2)The members of committees and sub-committees may include persons who are not members of the Authority.

Delegation of functions

20(1)Anything authorised or required by or under any enactment to be done by the Authority may be done—

(a)by any member or employee who has been authorised for the purpose, whether generally or specially, by the Authority,

(b)by any committee or sub-committee which has been so authorised, or

(c)by any wholly owned subsidiary of the Authority which has been so authorised.

(2)A person may not act in relation to any matter delegated under sub-paragraph (1)(a) if in any way directly or indirectly interested in it.

Members' interests

21(1)Where any matter brought up for consideration at a meeting of the Authority or a committee or sub-committee is one in which any person who is a member of it is in any way directly or indirectly interested, the person shall disclose the nature of the interest to the meeting; and where such a disclosure is made—

(a)the disclosure shall be recorded in the minutes of the meeting, and

(b)the person shall not take any part in any deliberation or decision with respect to that matter.

(2)Sub-paragraph (1) shall only apply to a person not present at a meeting if the person was aware that the matter would be brought up for consideration at the meeting.

(3)For the purposes of sub-paragraph (1), a general notification given at a meeting of the Authority to the effect that a person—

(a)has an interest in a specified company, firm or other organisation, and

(b)is to be regarded as interested in any matter involving that company, firm or other organisation,

shall be regarded as a sufficient disclosure of the interest in relation to any such matter.

(4)A person need not attend in person at a meeting in order to make a disclosure required under this paragraph if reasonable steps are taken to secure that the disclosure is made by a notice which is read and considered at the meeting.

(5)The Secretary of State may remove a disability under this paragraph subject to appropriate conditions.

(6)The power of the Secretary of State under sub-paragraph (5) includes power to remove, either indefinitely or for any period, a disability which would otherwise attach to any person, or persons of any description, by reason of such interests, and in respect of such matters, as may be specified or described by the Secretary of State.

(7)Nothing in this paragraph precludes any person from taking part in the consideration or discussion of, or voting on, any question whether an application should be made to the Secretary of State for the exercise of the power conferred by sub-paragraph (5).

Vacancies and defective appointments

22The validity of any proceedings of the Authority, or of a committee or sub-committee, shall not be affected by a vacancy amongst the members or by a defect in the appointment of a member.

Minutes

23(1)Minutes shall be kept of proceedings of the Authority and of committees and sub-committees.

(2)Minutes of any such proceedings shall be evidence of those proceedings if they are signed by a person purporting to have chaired the proceedings to which the minutes relate or of any subsequent proceedings in the course of which the minutes were approved as a correct record.

(3)Where minutes of any such proceedings have been signed as mentioned in sub-paragraph (2), those proceedings shall, unless the contrary is shown, be deemed to have been validly convened and constituted.

Execution and proof of instruments

24(1)The application of the seal of the Authority shall be authenticated by the signature of any member or employee of the Authority who has been authorised for the purpose, whether generally or specially, by the Authority.

(2)Any document which the Authority is authorised or required by or under any enactment to serve, make or issue may be signed on behalf of the Authority by any member or employee of the Authority who has been authorised for the purpose, whether generally or specially, by the Authority.

(3)Every document purporting to be an instrument made or issued by or on behalf of the Authority and to be duly executed under the seal of the Authority, or to be signed or executed by a person authorised by the Authority for the purpose, shall be received in evidence and be treated, without further proof, as being so made or issued unless the contrary is shown.

(4)In sub-paragraph (1) the reference to the signature of a person includes a reference to a facsimile of a signature reproduced by any process; and “signed” in sub-paragraphs (2) and (3) shall be construed accordingly.

Part VConsequential amendments

Documentary Evidence Act 1868 (c. 37)

25The Documentary Evidence Act 1868 shall have effect as if—

(a)the Authority were mentioned in the first column of the Schedule to that Act,

(b)any member or employee of the Authority authorised to act on behalf of the Authority were specified in the second column of that Schedule in connection with the Authority, and

(c)the regulations referred to in that Act included any document issued by or under the authority of the Authority.

Public Records Act 1958 (c. 51)

26In the First Schedule to the Public Records Act 1958 (definition of public records), in Part I of the Table at the end of paragraph 3, in the second column, after “Civil Aviation Authority.” insert—

Strategic Rail Authority.

Parliamentary Commissioner Act 1967 (c. 13)

27In Schedule 2 to the Parliamentary Commissioner Act 1967 (which lists the bodies subject to the jurisdiction of the Parliamentary Commissioner), insert (at the appropriate place in alphabetical order)—

Strategic Rail Authority.

House of Commons Disqualification Act 1975 (c. 24)

28In Part II of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), insert (at the appropriate place in alphabetical order)—

The Strategic Rail Authority.

Northern Ireland Assembly Disqualification Act 1975 (c. 25)

29In Part II of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies of which all members are disqualified), insert (at the appropriate place in alphabetical order)—

The Strategic Rail Authority.

Freedom of Information Act 2000 (c. 36)

30In Part VI of Schedule 1 to the Freedom of Information Act 2000 (public authorities), insert (at the appropriate place in alphabetical order)—

The Strategic Rail Authority.

Section 211.

SCHEDULE 15Financial assistance: transfers to SRA

Transfer schemes

1(1)The Secretary of State may make one or more schemes for the transfer to the Authority of such of the property, rights and liabilities of the Secretary of State (including any rights and liabilities relating to persons employed in the civil service of the state) as the Secretary of State considers appropriate in consequence of sections 137 and 139 of the [1993 c. 43.] Railways Act 1993 being superseded by section 211 of this Act.

(2)In this Schedule “transfer scheme” means a scheme under this paragraph.

Contents of transfer scheme

2(1)The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.

(2)The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.

3A transfer scheme may define the property, rights and liabilities to be transferred to the Authority by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the Secretary of State (or partly in one way and partly in the other).

4A transfer scheme may also contain provision—

(a)for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the Secretary of State,

(b)for the creation in favour of the Authority of an interest in or right over, property retained by the Secretary of State,

(c)for the creation of rights and liabilities as between the Authority and the Secretary of State, or

(d)for any rights or liabilities specified or described in the scheme to be, or to be to any extent, enforceable by or against the Authority.

5A transfer scheme may make such supplementary, incidental and consequential provision as the Secretary of State considers appropriate.

Effect of transfer scheme

6On the date appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this paragraph, be transferred in accordance with the provisions of the scheme.

7Nothing in this Schedule affects the validity of anything done by or in relation to the Secretary of State in connection with anything transferred by a transfer scheme.

8There may be continued by or in relation to the Authority anything (including legal proceedings) relating to anything transferred by a transfer scheme which is in the process of being done by or in relation to the Secretary of State immediately before it is transferred.

9Anything done by the Secretary of State for the purpose of or in connection with anything transferred by a transfer scheme which is in effect immediately before it is transferred shall be treated as if done by the Authority.

10The Authority shall be substituted for the Secretary of State in documents and legal proceedings relating to anything transferred by a transfer scheme.

Transfer of employees

11(1)This paragraph applies where a person employed in the civil service of the state becomes an employee of the Authority under a transfer scheme.

(2)For the purposes of the [1996 c. 18.] Employment Rights Act 1996—

(a)his period of employment in the civil service of the state counts as a period of employment with the Authority, and

(b)the change of employment does not break the continuity of the period of employment.

Modification of transfer scheme

12(1)If at any time after a transfer scheme has come into force the Secretary of State considers it appropriate to do so, he may by order provide that the scheme shall for all purposes be deemed to have come into force with such modifications, other than modifications relating to the transfer of rights and liabilities under a contract of employment, as may be specified in the order.

(2)An order under sub-paragraph (1) may make, with effect from the coming into force of the scheme, such provision as could have been made by the scheme, and in connection with giving effect to that provision from that time may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(3)An order under sub-paragraph (1) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Consultation

13Before making a transfer scheme, or an order modifying such a scheme, the Secretary of State shall consult the Authority.

Section 215.

SCHEDULE 16Transfer to SRA of Franchising Director’s functions

Transport Act 1968 (c. 73)

1(1)Section 56 of the Transport Act 1968 (Ministerial grants and local authority payments towards capital expenditure incurred in provision, improvement or development of facilities for public passenger transport) is amended as follows.

(2)In subsection (2A), for “Franchising Director under which the Franchising Director undertakes to exercise franchising functions of his” substitute “Strategic Rail Authority under which the Authority undertakes to exercise any of its franchising functions”.

(3)In subsection (2B)—

(a)omit the definition of “the Franchising Director”, and

(b)in the definition of “franchising functions”, for “Franchising Director” substitute “Strategic Rail Authority” and for “him” substitute “it”.

Insolvency Act 1986 (c. 45)

2Sections 11 to 23 and 27 of the Insolvency Act 1986, as they apply by virtue of Schedule 6 to the [1993 c. 43.] Railways Act 1993 (with the modifications specified in that Schedule) where a railway administration order has been made, have effect subject to the following amendments.

3In section 13(3) (appointment of administrator), as it has effect as substituted by paragraph 3 of Schedule 6, for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

4(1)Section 18 (discharge and variation of administration order), as it has effect as provided by paragraph 7 of Schedule 6, is amended as follows.

(2)In subsection (1), as substituted by sub-paragraph (2) of paragraph 7, for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

(3)In subsection (4), in the words substituted by paragraphs (a) and (b) of sub-paragraph (4) of paragraph 7, for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

5In section 21(1) (notice of order to be given by administrator), as it has effect as provided by paragraph 8 of Schedule 6, in the words substituted by paragraphs (a) and (b) of that paragraph, for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

6In section 23 (statement of proposals), as it has effect as provided by paragraph 9 of Schedule 6, in subsections (1) and (2A) as substituted by that paragraph, for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

7In section 27 (protection of interests of creditors and members), as it has effect as provided by paragraph 10 of Schedule 6, in—

(a)subsection (1A), as inserted by sub-paragraph (2) of that paragraph, and

(b)subsection (6) as substituted by sub-paragraph (5) of that paragraph,

for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

Railways Act 1993 (c. 43)

8The [1993 c. 43.] Railways Act 1993 has effect subject to the following amendments.

9In section 4(5)(c) (Regulator to have regard to financial position of Franchising Director in discharging his functions), for “Franchising Director in discharging his” substitute “Authority in discharging its”.

10In section 8(8) (duty to consult Franchising Director before making regulations about licence applications), for “Franchising Director” substitute “Authority”.

11(1)Section 17 (access agreements: directions requiring facility owners to enter into contracts for use of their railway facilities) is amended as follows.

(2)In subsection (3), for “Franchising Director” (in each place) substitute “Authority”.

(3)In subsection (4)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “him” (in both places) substitute “the Authority”.

12In section 18 (access agreements: contracts requiring approval of Regulator), in subsection (4), for “Franchising Director” (in each place) substitute “Authority”.

13(1)Section 19 (access agreements: contracts for use, on behalf of the Franchising Director, of installations comprised in network) is amended as follows.

(2)In subsections (1) and (4), and in the sidenote, for “Franchising Director” substitute “Authority”.

(3)In subsection (7)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “him” (in both places) substitute “the Authority”.

14(1)Section 23 (passenger services to be subject to franchise agreements) is amended as follows.

(2)In subsection (1), for “Franchising Director” substitute “Authority”.

(3)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “his” substitute “its”.

(4)In subsection (3), in the definition of “franchise agreement”, for “Franchising Director” substitute “Authority”.

15In section 24(3) (duty of Secretary of State to consult Franchising Director about exemptions from designation as franchise services), for “Franchising Director” substitute “Authority”.

16(1)Section 26 (invitations to tender for franchises) is amended as follows.

(2)In subsection (1), for “Franchising Director” substitute “Authority”.

(3)In subsections (2) and (3)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

17(1)Section 27 (transfer of franchise assets and shares) is amended as follows.

(2)In subsections (1) and (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “himself” substitute “itself”.

(3)In subsections (3), (4) and (8), for “Franchising Director” substitute “Authority”.

(4)In subsection (9)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “his” substitute “its”, and

(c)for “himself” substitute “itself”.

(5)In subsection (10)—

(a)for “Franchising Director” (in each place) substitute “Authority”, and

(b)for “he” substitute “it”.

18(1)Section 28 (fares and approved discount fare schemes) is amended as follows.

(2)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” (in both places) substitute “it”, and

(c)for “his” substitute “its”.

(3)In subsection (4), for “Franchising Director” substitute “Authority”.

19In section 29 (other terms and conditions of franchise agreements), in subsection (1) (in both places) and in subsection (5), for “Franchising Director” substitute “Authority”.

20(1)Section 34 (Passenger Transport Authorities and Executives: franchising) is amended as follows.

(2)In subsection (4)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” substitute “the Authority”.

(3)In subsection (5)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “his” (in both places) substitute “the Authority's,” and

(c)for “him” substitute “the Authority”.

(4)In subsection (6) and in subsection (7) (in both places), for “Franchising Director” substitute “Authority”.

(5)In subsection (8)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “he” substitute “the Authority”.

(6)In subsections (10) and (12) and in subsection (13) (in both places), for “Franchising Director” substitute “Authority”.

(7)In subsection (14)—

(a)for “Franchising Director” (in each place) substitute “Authority”,

(b)for “him” substitute “the Authority”, and

(c)for “he” (in both places) substitute “the Authority”.

(8)In subsection (15), for “Franchising Director” substitute “Authority”.

(9)In subsection (16)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “his” substitute “its”.

(10)In subsection (17), for “Franchising Director” (in each place) substitute “Authority”.

(11)In subsection (18)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “he may apply” substitute “the Authority may apply”.

(12)In subsection (19), for “Franchising Director” substitute “Authority”.

21In section 35 (termination and variation of section 20(2) agreements by Franchising Director), for “Franchising Director” (in each place, including the sidenote) substitute “Authority”.

22(1)Section 37 (proposals to discontinue non-franchised etc. passenger services) is amended as follows.

(2)In subsection (1), for “Franchising Director” (in both places) substitute “Authority”.

(3)In subsections (4) and (5)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

(4)In subsection (6)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “it”, and

(c)for “him” (in both places) substitute “it”.

(5)In subsection (7), for “Franchising Director's” substitute “Authority's”.

(6)In subsection (8), for “Franchising Director” (in both places) substitute “Authority”.

(7)In subsection (10)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

23(1)Section 38 (proposals to discontinue franchised etc. passenger services) is amended as follows.

(2)In subsection (1)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “he” substitute “it”.

(3)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” substitute “it”.

(4)In subsection (3)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “he” substitute “it”.

(5)In subsection (5)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” (in both places) substitute “it”.

(6)In subsection (6), for “Franchising Director” (in both places) substitute “Authority”.

(7)In subsection (8), for “Franchising Director” substitute “Authority”.

24(1)Section 39 (notification of proposals to change operational passenger networks) is amended as follows.

(2)In subsection (1), for “Franchising Director” (in both places) substitute “Authority”.

(3)In subsections (5) and (6)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

(4)In subsection (7)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “it”, and

(c)for “him” (in both places) substitute “it”.

(5)In subsection (8), for “Franchising Director's” substitute “Authority's”.

(6)In subsection (9), for “Franchising Director” (in both places) substitute “Authority”.

(7)In subsection (11)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” (in both places) substitute “it”.

25(1)Section 40 (proposals to close passenger networks operated on behalf of Franchising Director) is amended as follows.

(2)In subsection (1), for “Franchising Director” (in both places) substitute “Authority”.

(3)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” substitute “the Authority”.

(4)In subsection (5)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” (in both places) substitute “it”.

(5)In subsection (6), for “Franchising Director” (in both places) substitute “Authority”.

(6)In subsection (8) and in the sidenote, for “Franchising Director” substitute “Authority”.

26(1)Section 41 (notification of proposals to close railway facilities used in connection with passenger services) is amended as follows.

(2)In subsection (1), for “Franchising Director” (in both places) substitute “Authority”.

(3)In subsections (4) and (5)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

(4)In subsection (6)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “it”, and

(c)for “him” (in both places) substitute “it”.

(5)In subsection (7), for “Franchising Director's” substitute “Authority's”.

(6)In subsection (8), for “Franchising Director” (in both places) substitute “Authority”.

(7)In subsection (10)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” (in both places) substitute “it”.

27(1)Section 42 (proposals to close passenger railway facilities operated on behalf of Franchising Director) is amended as follows.

(2)In subsection (1), for “Franchising Director” (in both places) substitute “Authority”.

(3)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” substitute “the Authority”.

(4)In subsection (4)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” (in both places) substitute “it”.

(5)In subsection (5), for “Franchising Director” (in both places) substitute “Authority”.

(6)In subsection (7) and in the sidenote, for “Franchising Director” substitute “Authority”.

28(1)Section 43 (closures: notification to, and functions of, Regulator and consultative committees).

(2)In subsection (1)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “it”, and

(c)for “his” substitute “its”.

(3)In subsections (3), (12) and (13), for “Franchising Director” substitute “Authority”.

29In section 45(2) (closure conditions), for “Franchising Director” (in both places) substitute “Authority”.

30In subsections (2) and (4) of section 46 (variation of closure conditions), for “Franchising Director” substitute “Authority”.

31For section 47 (which transfers to the Franchising Director, so as to make them exercisable concurrently with the Board, the functions of the Board under sections 119 to 124 of the [1985 c. 67.] Transport Act 1985) substitute—

47Withdrawal of bus substitution service

(1)Where the Authority proposes to seek—

(a)revocation of a condition requiring it to secure the provision of a bus substitution service, or

(b)variation of such a condition so as to permit the Authority to withdraw such a service from any locality or point,

it shall, not less than six weeks before the date proposed for the withdrawal of the service, publish in two successive weeks in two local newspapers circulating in the area affected, and in such other manner as appears to it appropriate, a notice complying with subsection (2) below.

(2)The notice shall—

(a)give particulars of the proposed withdrawal of service, of any alternative services which it appears to the Authority will be available and of any proposals of the Authority for securing or augmenting the provision of alternative services; and

(b)state that objections to the revocation or variation may be lodged with the appropriate Rail Passengers' Committee within six weeks of a date specified in the notice.

(3)The date so specified shall be the date on which the notice is last published in a local newspaper as required by subsection (1) above.

(4)Copies of the notice published under subsection (1) above shall be sent to—

(a)the Rail Passengers' Committee for the area in which any locality or point affected by the proposed withdrawal of service is situated; and

(b)the Passenger Transport Executive for any passenger transport area in which any such locality or point is situated.

(5)Where the proposed withdrawal of service relates to a service which is subsidised by the Passenger Transport Executive for any passenger transport area under any agreement made with the Authority, the Authority shall not publish a notice with respect to the proposed withdrawal under subsection (1) above without the consent of—

(a)the Executive; or

(b)the Secretary of State, who shall not give his consent before affording a reasonable opportunity to the Executive to make representations.

(6)References in this section and section 47A below to a Rail Passengers' Committee shall be construed, in relation to the Greater London area within the meaning of section 2 above, as references to the London Transport Users' Committee.

47AObjections to withdrawal of bus substitution service

(1)Where a notice has been published by the Authority under section 47 above, any user of any service affected (and any body representing users of any such service) may within the period specified in the notice lodge an objection in writing with the Rail Passengers' Committee for the area in a locality or point affected by the proposed withdrawal of service is situated.

(2)Where a Rail Passengers' Committee receives objections pursuant to a notice under section 47 above, it shall—

(a)immediately inform the Secretary of State and the Authority;

(b)consider the objection and any representations made by the Authority; and

(c)report to the Secretary of State as soon as possible on the hardship, if any, which they consider will be caused by the proposed withdrawal of service (and the report may contain proposals for alleviating that hardship).

(3)Where objections with respect to any proposed withdrawal of service have been lodged with two or more Rail Passengers' Committees, they may—

(a)report to the Secretary of State jointly under this section; or

(b)agree that their functions under this sections shall be delegated to one any of them.

(4)The Secretary of State may require a further report from any committee making a report to him under subsection (1) above.

(5)Copies of every report under subsection (1) or (2) above shall be sent to the Rail Passengers' Council and to the Authority.

(6)Where the proposed withdrawal of service—

(a)relates to a service which is subsidised by the Passenger Transport Executive for a passenger transport area, or

(b)would affect a locality or point in the passenger transport area of a Passenger Transport Executive,

the Executive may, within the period specified in the notice for objecting to the withdrawal, send the Secretary of State a statement in writing that they oppose the withdrawal and of their reasons for opposing it (even if they consented to the publication of the notice).

(7)Where the Passenger Transport Executive for any passenger transport area send such a statement to the Secretary of State they shall send a copy of it to the Authority.

47BRevocation or variation of bus substitution conditions

(1)Where an objection to a proposed withdrawal of service is lodged in accordance with subsection (1) of section 47A above, the Secretary of State may revoke or vary the condition in question—

(a)when he has received the report required by subsection (3) of that section and any further report required by him under subsection (4) of that section (unless he considers that any such report has been unreasonably delayed); and

(b)after considering any statement under subsection (4) of that section.

(2)Where the Secretary of State revokes or varies a condition under subsection (1), he may—

(a)impose such conditions as he thinks fit, including a condition requiring the Authority to secure the provision of another bus substitution service; and

(b)from time to time give such directions to the Authority as he thinks fit in connection with the withdrawal of the bus substitution service required by that condition;

and such a condition may be varied or revoked as if it had been made under section 43 above.

(3)Where no objections are lodged in accordance with section 47A above, the Secretary of State shall revoke or vary the condition in question in accordance with the Authority’s proposals.

32(1)Section 48 (experimental services) is amended as follows.

(2)In subsection (2)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

(3)In subsection (4)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “the Authority”, and

(c)for “him” substitute “the Authority”.

(4)In subsection (6), for “Franchising Director” substitute “Authority”.

(5)In subsection (7)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

33In section 50(1) (exclusion of liability for breach of statutory duty), for “Franchising Director” substitute “Authority”.

34(1)Section 54 (exercise of functions for purpose of encouraging investment in railways) is amended as follows.

(2)In subsection (1)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “his, or (as the case may be) their,” substitute “their”.

(3)In subsection (2)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “franchising functions of his” substitute “any of its franchising functions”.

(4)In subsection (3)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “functions of his under” substitute “of the Authority’s functions under”,

(c)for “him” substitute “the Authority”, and

(d)for “his which” substitute “the Authority which”.

35(1)Section 55 (orders for securing compliance) is amended as follows.

(2)In subsections (1) to (7)—

(a)for “officer” (in each place) substitute “authority”, and

(b)for “he” and “him” (in each place) substitute “it”.

(3)In subsection (10)—

(a)for “officer” substitute “authority”, and

(b)for “Franchising Director” substitute “Authority”.

(4)In subsection (11), for “Franchising Director” substitute “Authority”.

(5)In the heading before section 55, for “Franchising Director” substitute “Authority”.

36In section 56 (procedural requirements)—

(a)for “officer” (in each place) substitute “authority”,

(b)for “he” (in each place) substitute “it”, and

(c)for “his” (in each place) substitute “its”.

37In section 57(7) (validity and effect of orders), for “officer” substitute “authority”.

38(1)Section 58 (power to require information etc.) is amended as follows.

(2)In subsection (1)—

(a)for “officer” (in both places) substitute “authority”, and

(b)for “his” substitute “its”.

(3)In subsection (2) (in each place) and in subsection (6), for “officer” substitute “authority”.

39In section 60(1) (railway administration orders made on special petition), for “Franchising Director” substitute “Authority”.

40In section 61 (restriction on making winding-up order in respect of protected railway company), for “Franchising Director” (in both places) substitute “Authority”.

41In section 62 (restrictions on voluntary winding up and insolvency proceedings in case of protected railway companies), for “Franchising Director” (in each place) substitute “Authority”.

42In section 69(4) (power of Regulator to provide Franchising Director with information relating to Franchising Director’s functions), for “Franchising Director” (in each place) substitute “Authority”.

43In subsection (9) of section 72 (keeping of register by Regulator)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “him” substitute “it”,

and in the heading preceding that section, for “Franchising Director” substitute “Authority”.

44(1)Section 73 (keeping of register by Franchising Director) is amended as follows.

(2)In subsection (1)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “he” substitute “it”.

(3)In subsection (2)—

(a)for “Franchising Director” (in both places) substitute “Authority”, and

(b)for “he” (in both places) substitute “it”.

(4)In subsection (3) (in both places), in subsection (4), in subsection (6) (in both places) and in subsection (7) (in both places), for “Franchising Director” substitute “Authority”.

(5)In the sidenote, for “Franchising Director” substitute “Authority”.

45(1)Section 75 (annual reports of Franchising Director) is amended as follows.

(2)In subsection (1)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “the first relevant financial year, and of each subsequent financial year,” substitute “each financial year,”, and

(c)for “his” substitute “its”.

(3)In subsections (2) and (2A), in subsection (3) (in both places) and in the sidenote, for “Franchising Director” substitute “Authority”.

(4)In subsection (4), omit the definition of “first relevant financial year”.

46In section 76 (general duties of Central Committee), in subsection (4)(b) (in both places) and in subsection (8), for “Franchising Director” substitute “Authority”.

47In section 77 (general duties of consultative committees), in subsection (3)(b) (in both places), in subsection (8) (in both places) and in subsection (10), for “Franchising Director” substitute “Authority”.

48(1)Section 80 (duty to furnish information to Franchising Director on request) is amended as follows.

(2)In subsection (1)—

(a)for “Franchising Director” (in both places) substitute “Authority”,

(b)for “he” (in both places) substitute “it”, and

(c)for “function of his” substitute “of its functions”.

(3)In subsection (3), in subsection (4) (in each place), in subsection (8) and in the sidenote, for “Franchising Director” substitute “Authority”.

49(1)Section 118 (control of railways in time of hostilities, severe international tension or great national emergency) is amended as follows.

(2)In subsection (1), for “Franchising Director” substitute “Authority”.

(3)In subsection (3)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him to carry out his” substitute “the carrying out of”.

(4)In subsection (5)—

(a)for “Franchising Director” substitute “Authority”, and

(b)omit “given to him” and “relating to him”.

(5)In subsection (9), for “Franchising Director” substitute “Authority”.

50(1)Section 135 (concessionary travel for railway staff etc.) is amended as follows.

(2)In subsections (2) and (3), for “Franchising Director” substitute “Authority”.

(3)In subsection (6)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “his” substitute “its”.

(4)In subsection (7), for “Franchising Director” substitute “Authority”.

51(1)Section 136 (grants and subsidies) is amended as follows.

(2)In subsections (3) and (4), for “Franchising Director” substitute “Authority”.

(3)In subsection (6), for “Franchising Director may each, in his capacity” substitute “Authority may each,”.

(4)In subsection (7), for “Franchising Director” (in both places) substitute “Authority”.

(5)In subsection (10), for “Franchising Director” substitute “Authority”.

52In section 145 (restriction on disclosure of information not to apply to disclosure for facilitating carrying out of certain functions), for “Franchising Director” (in both places) substitute “Authority”.

53In section 151 (interpretation), in subsection (2) (in both places) and in subsection (3) (in each place), for “Franchising Director” substitute “Authority”.

54(1)Paragraph 2 of Schedule 7 (transfer schemes in connection with railway administration orders) is amended as follows.

(2)In sub-paragraph (2), for “Franchising Director” substitute “Authority”.

(3)In sub-paragraph (3), for “Franchising Director, for his approval, he” substitute “Authority for approval, the Secretary of State or Authority”.

(4)In sub-paragraph (6)—

(a)for “Franchising Director” substitute “Authority”, and

(b)for “him” substitute “the Secretary of State or Authority”.

(5)In sub-paragraph (7)—

(a)for “Franchising Director” substitute “Authority”,

(b)for “he” substitute “the Secretary of State or Authority”, and

(c)omit “on him”.

Railway Heritage Act 1996 (c. 42)

55(1)Section 1 of the Railway Heritage Act 1996 (bodies to which Act applies) is amended as follows.

(2)For paragraph (f) substitute—

(f)the Strategic Rail Authority (“the Authority”);.

(3)In paragraph (g), for “that Director” substitute “the Authority”.

Channel Tunnel Rail Link Act 1996 (c. 61)

56(1)Section 19 of the Channel Tunnel Rail Link Act 1996 (railway administration orders) is amended as follows.

(2)In subsections (2) and (5), for “Director of Passenger Rail Franchising” substitute “Strategic Rail Authority”.

(3)In subsection (6)—

(a)for ““Franchising Director” (in both places) substitute “Authority””, and

(b)for ““Director”” substitute ““Authority””.

Competition Act 1998 (c. 41)

57In paragraph 2 of Schedule 11 to the Competition Act 1998 (meaning of “designated person” in provisions about disclosure of information), for paragraph (k) substitute—

(k)the Strategic Rail Authority;.

Greater London Authority Act 1999 (c. 29)

58The Greater London Authority Act 1999 has effect subject to the following amendments.

59(1)Section 175 (co-operation between Transport for London and Franchising Director) is amended as follows.

(2)In subsection (1) (in both places), in subsection (2) and in the sidenote, for “Franchising Director” substitute “Strategic Rail Authority”.

(3)In subsection (3)—

(a)for “Franchising Director” substitute “Strategic Rail Authority”,

(b)for “his” substitute “its”, and

(c)for “him” substitute “it”.

(4)Omit subsection (4).

60In section 177 (provision of extra passenger transport services and facilities), for “Franchising Director” (in both places) substitute “Strategic Rail Authority”.

61For section 196 (power of Greater London Authority to give instructions or guidance to Franchising Director) and the heading before it substitute—

The Authority and the Strategic Rail Authority

196Power of Authority to give directions and guidance to Strategic Rail Authority

(1)The Authority may give directions and guidance to the Strategic Rail Authority in relation to the provision of railway services in Greater London.

(2)It is immaterial for the purpose of giving directions and guidance under subsection (1) above whether implementation of the directions and guidance affects railway services outside Greater London.

(3)The Strategic Rail Authority shall exercise its functions in the manner best calculated to implement any directions and guidance given to it by the Authority (but subject to subsections (4) and (5) below).

(4)The Strategic Rail Authority shall not implement any directions or guidance given to it by the Authority if or to the extent that to do so would prevent or seriously hinder the Strategic Rail Authority—

(a)from complying with any directions given to it by the Secretary of State under section 207(5) of the Transport Act 2000 or from having regard to any guidance so given; or

(b)from exercising any of its functions in a manner which is consistent with its financial framework.

(5)The Strategic Rail Authority need not implement any directions or guidance given to it by the Authority if or to the extent that to do so would—

(a)have an adverse effect on the provision of services for the carriage of passengers or goods by railway outside Greater London; or

(b)increase the amount of any expenditure of the Strategic Rail Authority under agreements or other arrangements entered into (in accordance with a franchise agreement) with the franchise operator, the franchisee or any servant, agent or independent contractor of the franchise operator or franchisee.

(6)If the Strategic Rail Authority decides not to implement any directions or guidance given to it by the Authority, whether generally or in a particular case, it shall give the Authority notification of the decision and its reasons for it.

(7)The directions and guidance which may be given under this section are—

(a)directions and guidance as to the manner in which the Strategic Rail Authority is to exercise its functions in order to comply with section 207(1) to (3) of the Transport Act 2000, and

(b)directions to the Strategic Rail Authority not to exercise any of its functions in a particular manner (or not to do so without consulting, or obtaining the consent of, the Authority),

in relation to the provision of services for the carriage of passengers by railway or the operation of additional railway assets under or by virtue of any franchise agreement or any provision of sections 30 and 37 to 49 of the [1993 c. 43.] Railways Act 1993.

(8)The functions of the Authority under this section shall be exercisable by the Mayor acting on behalf of the Authority.

(9)Expressions used in this section and in Part I of the Railways Act 1993 have the same meaning in this section as in that Part.

62In section 197 (Franchising Director to consult Mayor of London as to fares, services etc.), for “Franchising Director” (in each place, including the sidenote) substitute “Strategic Rail Authority”.

63In section 199(1) (licence exemptions and facility exemptions), for “Franchising Director” substitute “Strategic Rail Authority”.

64In section 201(3)(c) (agreements requiring passenger licence not to be made by Transport for London: excepted agreements), for “Franchising Director” substitute “Strategic Rail Authority”.

65In section 203 (closures: copy documents to Mayor of London), for “Franchising Director” (in both places, including the sidenote) substitute “Strategic Rail Authority”.

66(1)Section 235 (disclosure of information) is amended as follows.

(2)In subsection (2)(b), for “Franchising Director” substitute “Strategic Rail Authority”.

(3)Omit subsection (6).

67(1)Section 240 (travel concessions on journeys in and around Greater London) is amended as follows.

(2)In subsection (2) (in both places), and in subsection (7), for “Franchising Director” substitute “Strategic Rail Authority”.

(3)In subsection (8), omit the definition of “the Franchising Director”.

Section 216.

SCHEDULE 17Transfers to SRA from Rail Regulator

Part IFunctions relating to licences

Introductory

1The [1993 c. 43.] Railways Act 1993 has effect subject to the following amendments.

Exemptions

2(1)Section 7 (exemptions from requirement for operator of railway asset to be authorised by licence) is amended as follows.

(2)In subsection (1) (power of Secretary of State to grant exemption after consultation with Regulator), after “Regulator” insert “and the Authority”.

(3)In subsection (3) (power of Regulator to grant exemption after consultation with Secretary of State), after “Secretary of State” insert “and the Authority”.

(4)After subsection (5) insert—

(5A)The Regulator shall obtain the approval of the Authority to any condition of a licence exemption which relates to consumer protection; but a failure to comply with this subsection shall not affect the validity of the licence exemption.

(5)After subsection (6) insert—

(6A)If the broken condition relates to consumer protection, the Authority may require the Regulator to give to any relevant person specified by the Authority a direction declaring that the licence exemption is revoked, so far as relating to that person, to such extent and from such date as is specified by the Authority.

(6)In subsection (7), for “subsection (6) above” substitute “this section”.

(7)After subsection (8) insert—

(8A)The Authority may require the Regulator, when he gives a direction to any person in compliance with a requirement under subsection (6A) above, also to direct that person to refrain from being the operator of any railway assets, any railway assets specified by the Authority or any railway assets of a class or description so specified.

(8)In subsection (9), for “subsection (6)” substitute “subsections (6) and (6A)”.

Consumer protection conditions

3After section 7 insert—

7AConsumer protection conditions

(1)For the purposes of this Part conditions of a licence or licence exemption relate to consumer protection if they are—

(a)conditions about fares, other than conditions about predatory fare pricing;

(b)conditions about complaints against the operator by members of the public or liabilities of the operator to members of the public;

(c)conditions about insurance;

(d)conditions about policing or security;

(e)conditions for facilitating the use of railway services by members of the public (for instance, conditions about timetable information, enquiries, sale of tickets, through ticketing and conditions of carriage);

(f)conditions about liaison with the Rail Passengers' Council or Rail Passengers' Committees; or

(g)conditions for protecting the interests of persons who are disabled.

(2)The Secretary of State may make regulations providing that for the purposes of this Part—

(a)further prescribed descriptions of conditions of licences or licence exemptions are conditions which relate to consumer protection; or

(b)conditions of any description within subsection (1) above are not conditions which so relate.

(3)Only conditions for protecting the interests of the public may be prescribed under subsection (2)(a) above and conditions of the following descriptions may not be so prescribed—

(a)conditions about technical standards or procedures (including safety standards or procedures);

(b)conditions about the protection of the environment;

(c)conditions about responsibility for, or access to, the railway assets to which the licence or licence exemption relates;

(d)conditions relating to the development, improvement or maintenance of the network; and

(e)conditions about anti-competitive practices (including predatory fare pricing and cross-subsidy), investment, financial standards or auditing (including efficiency audits).

(4)The Secretary of State may make in relation to any licence or licence exemption granted before the coming into force of regulations under subsection (2) above a scheme making such provision as appears to him to be appropriate in consequence of the provision made by the regulations.

(5)A scheme under subsection (4) above may include modifications of—

(a)the licence or licence exemption, and

(b)any agreements or other arrangements or other documents relating to the person (or any of the persons) to whom it was granted,

(in particular so that references to the Regulator have effect as references to the Authority or that references to the Authority have effect as references to the Regulator).

(6)The scheme may include provision—

(a)for things done by the Regulator before the time when the scheme comes into force to be treated after that time as if done by the Authority; or

(b)for things done by the Authority before the time when the scheme comes into force to be treated after that time as if done by the Regulator.

(7)Before making a scheme under subsection (4) above the Secretary of State must consult—

(a)the Authority;

(b)the Regulator;

(c)the person or persons to whom the licence or licence exemption was granted; and

(d)any such other persons as the Secretary of State considers appropriate.

(8)The provision made by regulations under subsection (2) above applies in relation to any licence or licence exemption granted before the coming into force of the regulations only from the coming into force of a scheme made under subsection (4) above in relation to the licence or licence exemption.

(9)In the case of the exercise by the Authority of any function in relation to conditions of a licence or licence exemption which relate to consumer protection—

(a)section 207 of the Transport Act 2000 shall not apply; but

(b)section 4 above shall apply (as if the Authority were the Regulator).

Grant

4(1)Section 8 (licences) is amended as follows.

(2)In subsection (1)—

(a)in paragraph (a) (grant by Secretary of State after consultation with Regulator), after “Regulator” insert “and the Authority”, and

(b)in paragraph (b) (grant by Regulator with consent of, or in accordance with general authority given by, Secretary of State), for the words after “consent” substitute “, or in accordance with a general authority, of the Secretary of State given after consultation with the Authority,”.

(3)In subsection (2) (general authority may require Regulator to consult, or obtain approval of, Secretary of State), for the words after “above” substitute—

(a)shall include a requirement for the Regulator before granting a licence to consult the Authority about, or a requirement for him before doing so to obtain the approval of the Authority to, any conditions to be included in the licence which relate to consumer protection; and

(b)may include a requirement for the Regulator either to consult the Secretary of State, or a requirement to obtain his approval before granting a licence;

but a failure to comply with such a requirement shall not affect the validity of the licence.

(4)In subsection (6) (certain licences not capable of being surrendered without consent of Regulator), for “without the consent of the Regulator” substitute “unless the Regulator and the Authority consent to the surrender”.

(5)In subsection (7) (grantor of licence to give copies)—

(a)in paragraph (a), after “Regulator” insert “, to the Authority”, and

(b)in paragraph (b), after “Regulator,” insert “to the Authority and”.

Assignment

5(1)Section 11 (assignment of licences) is amended as follows.

(2)In subsection (2) (requirement of consent of whichever of the relevant authorities is specified), for the words after “consent of” substitute—

(a)the Secretary of State, if he is specified for the purpose in the licence; or

(b)the Regulator and the Authority, in any other case.

(3)Omit subsection (3) (definition of “relevant authorities”).

(4)In subsection (4) (consent may be given subject to conditions imposed by person giving consent), for “the person giving the consent thinks fit to impose” substitute “are imposed by the person or persons giving the consent”.

Modification

6(1)Section 12 (modification by agreement) is amended as follows.

(2)After subsection (1) insert—

(1A)The Regulator may not modify the conditions of a licence which relate to consumer protection unless the Authority also consents to the modifications.

(1B)Where the Authority proposes to consent to modifications of such conditions, it shall give notice—

(a)stating that it proposes to consent to the modifications and setting out their effect,

(b)stating the reasons why it proposes to consent to 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 with respect to the proposed modifications may be made,

and shall, before giving consent, consider any representations or objections which are duly made and not withdrawn.

(1C)If the Authority consents to the modifications, it shall give a copy of any such representations or objections to the Regulator; and the Regulator shall consider them before making the modifications.

(3)In subsection (2) (notice by Regulator)—

(a)for “under this section” substitute “of any conditions of a licence which do not relate to consumer protection”, and

(b)after “and shall” insert “, before making the modifications,”.

(4)In subsection (3) (giving of notice)—

(a)after “subsection” insert “(1B) or”, and

(b)for “the Regulator” substitute “the Authority, or the Regulator,”.

(5)In subsection (4) (Regulator to send copy of modifications to Health and Safety Executive), after “to” insert “the Authority and”.

7(1)Section 13 (modification references to Competition Commission) is amended as follows.

(2)In subsection (1) (making of reference), for “Regulator” substitute “appropriate authority”.

(3)After that subsection insert—

(1A)In this section and section 14 below “the appropriate authority” means—

(a)where conditions of the licence addressing the matters specified in the reference would all inevitably be conditions relating to consumer protection, the Authority; and

(b)in any other case, the Regulator.

(1B)Before the Authority makes a reference under this section—

(a)where the licence authorises the operation of trains for the purpose of carrying passengers or goods by railway for hire or reward, it shall obtain the consent of the Regulator; and

(b)in any other case, it shall consult the Regulator.

(1C)Before the Regulator makes a reference under this section—

(a)where any condition of the licence addressing the matters specified in the reference would or may be conditions relating to consumer protection, he shall obtain the consent of the Authority; and

(b)in any other case, he shall consult the Authority.

(4)In subsection (2) (variation of reference), for “Regulator” substitute “appropriate authority”.

(5)In subsection (3) (matters which may be specified in reference or variation)—

(a)for “Regulator” substitute “appropriate authority”, and

(b)for “his” (in both places) substitute “its”.

(6)In subsection (4) (notice of reference or variation)—

(a)for “Regulator” substitute “appropriate authority”, and

(b)for “he” substitute “it”.

(7)In subsection (5) (copy to Secretary of State), for “Regulator” substitute “appropriate authority”.

(8)In subsection (6) (assistance to Commission)—

(a)for “Regulator” substitute “appropriate authority”,

(b)for “his possession” substitute “the possession of the appropriate authority”,

(c)for “his opinion” substitute “the opinion of the appropriate authority”, and

(d)for “his power” substitute “the power of the appropriate authority”.

8(1)Section 14 (reports on modification references) is amended as follows.

(2)In subsection (4) (report to Regulator), for “Regulator” substitute “appropriate authority”.

(3)In subsection (5) (publication by Regulator)—

(a)for “Regulator” substitute “appropriate authority”, and

(b)for “he” substitute “it”.

(4)After that subsection insert—

(5A)When the Authority receives such a report it shall send a copy of it to the Regulator; and when the Regulator receives such a report he shall send a copy of it to the Authority.

(5)In subsection (6) (direction to Regulator to exclude matters against public or commercial interests), for “Regulator” substitute “appropriate authority”.

9(1)Section 15 (modification following report) is amended as follows.

(2)In subsection (1) (duty of Regulator to modify)—

(a)for “Where” substitute “This section applies where”, and

(b)omit the words following paragraph (d).

(3)After that subsection insert—

(1A)Where the report is made to the Regulator he shall, subject to the following provisions of this section and to section 15A below, make such modifications of the conditions of the licence as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(1B)Where the report is made to the Authority it shall, subject to the following provisions of this section and to section 15A below, require the Regulator to make such modifications of the conditions of the licence as appear to it requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(4)In subsection (2) (Regulator to have regard to modifications specified in report)—

(a)after “making” insert “, or requiring the making of,”, and

(b)after “Regulator” insert “, or Authority,”.

(5)In subsection (3) (notice by Regulator), for “this section” substitute “subsection (1A) above”.

(6)After that subsection insert—

(3A)Before requiring the Regulator to make modifications under subsection (1B) above, the Authority shall give notice—

(a)stating that it proposes to require the making of the modifications and setting out their effect,

(b)stating the reasons why it proposes to require the making of 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 with respect to the proposed modifications may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(7)In subsection (4) (giving of notice)—

(a)after “(3)” insert “or (3A)”, and

(b)after “the Regulator” insert “, or the Authority,”.

(8)In subsection (5) (Regulator to send copy of modifications to Health and Safety Executive), after “to” insert “the Authority and”.

10In section 16(3) (Secretary of State to give copies of modifications under section 16), after “Regulator” insert “, to the Authority”.

Enforcement

11(1)Section 55 (orders for securing compliance) is amended as follows.

(2)After subsection (5) insert—

(5ZA)The Authority shall not make a final order, or make or confirm a provisional order, in relation to a licence holder or person under closure restrictions unless—

(a)it has given notice to the Regulator specifying a period within which he may give notice to it if he considers that the most appropriate way of proceeding is under the [1998 c. 41.] Competition Act 1998;

(b)that period has expired; and

(c)the Regulator has not given notice to the Authority within that period that he so considers (or, if he has, he has withdrawn it).

(3)In subsection (10), in the definition of “the appropriate officer”—

(a)in paragraph (a), after “holder” insert “, apart from a condition which relates to consumer protection,”, and

(b)in paragraph (b), after “to” insert “any condition relating to consumer protection in the case of a licence holder or to”.

(4)In subsection (11), for “(5A)” substitute “(5ZA)”.

12In section 56 (procedural requirements), after subsection (2) insert—

(2A)Where the Regulator serves a copy of a notice under subsection (1) above on a licence holder, he shall also serve a copy on the Authority; and where the Authority so serves a copy of such a notice, it shall also serve a copy on the Regulator.

Investigation

13In section 68(1)(a) (investigation by Regulator of contravention of licence condition), after “licence” insert “which does not relate to consumer protection”.

14After section 71 insert—

Other functions of the Authority
71AInvestigatory functions

(1)Subject to subsection (2) below, it shall be the duty of the Authority to investigate any alleged or apprehended contravention of a condition of a licence which relates to consumer protection if the alleged or apprehended contravention is the subject of a representation made to the Authority by or on behalf of a person who appears to the Authority to have an interest in the matter (other than one appearing to the Authority to be frivolous or vexatious).

(2)The Authority may, if it thinks fit, require a Rail Passengers' Committee to investigate and report to it on any matter falling within subsection (1) above which relates to—

(a)the provision of services for the carriage of passengers by railway, or

(b)the provision of station services,

and which it would otherwise have been the Authority’s duty to investigate.

Registers

15In section 72(2)(a) (matters about licences to be entered in register maintained by Regulator)—

(a)in sub-paragraph (iii) (modifications and revocations of licences), insert at the end “and every requirement to modify conditions of a licence imposed on the Regulator by the Authority”,

(b)in sub-paragraph (iv) (revocation of licence exemptions), insert at the end “and every requirement to revoke a licence exemption imposed on the Regulator by the Authority”,

(c)in sub-paragraph (vii) (enforcement orders etc.), for “which relates” substitute “made by the Regulator in relation”, and

(d)after that sub-paragraph insert—

(viii)every scheme made by the Secretary of State under section 7A(4) above or paragraph 2 of Schedule 28 to the Transport Act 2000;.

16In section 73(2) (matters which Authority is to enter in register maintained by it)—

(a)in paragraph (e) (provisions of enforcement orders etc.), for “which relates to” substitute “made by the Authority in relation to a licence or”, and

(b)at the end insert—

(h)every licence with conditions relating to consumer protection, every licence exemption with such conditions and every approval given by the Authority to such conditions of a licence or licence exemption;

(i)every assignment of a licence to which the Authority has consented;

(j)every requirement to modify conditions of a licence imposed by the Authority on the Regulator;

(k)every requirement to revoke a licence exemption imposed by the Authority on the Regulator;

(l)every requirement imposed, or consent or approval given, by the Authority under a licence;

(m)every scheme made by the Secretary of State under section 7A(4) above or paragraph 2 of Schedule 28 to the Transport Act 2000;.

Part IIOther functions

Introductory

17The [1993 c. 43.] Railways Act 1993 has effect subject to the following further amendments.

Rail users' consultative committees

18(1)Section 2 (Rail Users' Consultative Committees) is amended as follows.

(2)In subsection (2), for “Regulator” substitute “Strategic Rail Authority (in this Act referred to as “the Authority”)”.

(3)In subsections (5), (6), (6A) and (9), for “Regulator” (in each place) substitute “Authority”.

19In section 3(3) (Central Rail Users' Consultative Committee), for “Regulator” (in both places) substitute “Authority”.

20(1)Section 76 (general duties of Central Committee) is amended as follows.

(2)In subsection (2)(b), for “Regulator” substitute “Authority”.

(3)In subsection (5), for the words from “refer the matter” to the end substitute “, unless representations about the matter have been made to the Authority by the Rail Passengers' Council, refer it to the Authority with a view to the Authority exercising such of its powers as it considers appropriate in the circumstances of the case.”

(4)After that subsection insert—

(5A)But if the Authority considers that it would be more appropriate for a matter referred to it by the Rail Passengers' Council to be considered by the Regulator, the Authority shall refer it to him, with a view to his exercising such of his powers as he considers appropriate in the circumstances of the case.

(5)In subsection (6) (in both places) and in subsection (7), for “Regulator” substitute “Authority”.

21(1)Section 77 (general duties of consultative committees) is amended as follows.

(2)In subsection (2)(b), for “Regulator under section 68(2)(b) above” substitute “Authority”.

(3)In subsection (4), for the words from “refer the matter” to the end substitute “, unless representations about the matter have been made to the Authority by the Rail Passengers' Committee, refer it (or, if it was referred to the Rail Passengers' Committee by the Authority, refer it back) to the Authority with a view to the Authority exercising such of its powers as it considers appropriate in the circumstances of the case.”

(4)After that subsection insert—

(4A)But if the Authority considers that it would be more appropriate for a matter referred to it by a Rail Passengers' Committee to be considered by the Regulator, the Authority shall refer it (or, if it was referred to the Rail Passengers Committee by the Regulator, refer it back) to him, with a view to his exercising such of his powers as he considers appropriate in the circumstances of the case.

(5)In subsection (5), for “Regulator” substitute “Authority”.

(6)In subsection (6)—

(a)for “Regulator” substitute “Authority”, and

(b)for “him” substitute “it”.

(7)In subsection (7)—

(a)for “Regulator” substitute “Authority”, and

(b)for “he” substitute “it”.

(8)In subsection (8), omit “, after consultation with the Regulator,”.

(9)In subsection (9), for “to the Regulator under subsection (4)(a)” substitute “under subsection (4) or (4A)”.

22In section 79(1)(a) (annual report to Regulator by Central Committee and each consultative committee), for “Regulator” substitute “Authority”.

23(1)Schedule 2 (Rail Users' Consultative Committees) is amended as follows.

(2)In paragraphs 2, 4 and 5(4), for “Regulator” substitute “Authority”.

(3)In paragraph 8(1), for “Regulator out of money provided by Parliament” substitute “Authority”.

24(1)Schedule 3 (Central Rail Users' Consultative Committee) is amended as follows.

(2)In paragraphs 2, 4 and 5(4), for “Regulator” substitute “Authority”.

(3)In paragraph 8(1), for “Regulator out of money provided by Parliament” substitute “Authority”.

Closures

25(1)In sections 37(1), 38(2), 39(1), 40(2), 41(1) and 42(2) (provisions about closures with exceptions for closures certified by Regulator as minor closures), for “certified by the Regulator as being” substitute “determined by the Authority to be”.

(2)In the definition of “minor closure” in section 37(9), and in both places in that definition in sections 39(10) and 41(9), omit “, in the opinion of the Regulator,”.

(3)Before section 47 insert—

46BNotification of minor closures to Regulator

The Authority shall notify the Regulator of every determination under section 37(1), 38(2), 39(1), 40(2), 41(1) or 42(2) above that a closure is a minor closure.

26In section 55(10) (orders for securing compliance), in the definition of “the appropriate officer”—

(a)in paragraph (a), omit “or a person under closure restrictions,”, and

(b)in paragraph (b), for “or a franchise operator” substitute“, a franchise operator, a person under closure restrictions or a person (other than the Authority) who is required to comply with closure conditions or has agreed to comply with conditions under section 37(1), 39(1) or 41(1) above”.

27(1)In section 73(2) (matters which Authority must cause to be entered in register)—

(a)after paragraph (d) insert—

(da)every closure consent and closure condition, every determination under section 37(1), 38(2), 39(1), 40(2), 41(1) or 42(2) above that a closure is a minor closure, every condition imposed under section 37(1), 39(1) or 41(1) above, every general determination under section 46A above and every revocation of a general determination under that section;, and

(b)in paragraph (e) (orders relating to franchise agreements), after “agreement” insert “or to any closure or proposed closure or to any closure consent or closure condition”.

(2)In section 72(2), omit paragraph (c) (existing obligation of Regulator to keep information about closures).

Code for protection of disabled rail users

28(1)After section 71A insert—

71BCode of practice for protection of interests of rail users who are disabled

(1)The Authority shall—

(a)prepare and from time to time revise, and

(b)publish and otherwise promote the adoption and implementation of,

a code of practice for protecting the interests of users of railway passenger services or station services who are disabled

(2)In preparing or revising the code of practice, the Authority shall consult the Disabled Persons Transport Advisory Committee established under section 125 of the [1985 c. 67.] Transport Act 1985.

(2)Omit section 70 (existing obligation of Regulator in relation to code).

Annual reports

29(1)In section 75 (annual report of Authority), after subsection (1) insert—

(1A)Every such report shall include—

(a)general surveys of any developments during that year which relate to—

(i)the provision of railway passenger services or station services for, or the use of such services by, persons who are disabled; or

(ii)the employment by licence holders of persons who are disabled; and

(b)a general survey of the activities during that year of the Rail Passengers' Council and the Rail Passengers' Committees and a summary of any reports made to the Authority by the Rail Passengers' Council or any Rail Passengers' Committee.

(2)In section 74(2) (matters to be included in annual report of Regulator), omit paragraphs (b) and (d) (the matters which are now to be included in the annual report of the Authority by virtue of section 75(1A)(b) and (c)).

Penalty fares

30In section 130 (penalty fares), for “Regulator” (in each place) substitute “Authority”.

Part IIIAssociated property, rights and liabilities

Transfer schemes

31(1)The Secretary of State may make one or more schemes for the transfer to the Authority of such of the property, rights and liabilities of the Regulator (including any rights and liabilities relating to staff appointed by him) as the Secretary of State considers appropriate in consequence of the transfers of functions effected by Parts I and II of this Schedule.

(2)In this Part of this Schedule “transfer scheme” means a scheme under this paragraph.

Contents of transfer scheme

32(1)The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.

(2)The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.

33A transfer scheme may define the property, rights and liabilities to be transferred to the Authority by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the Regulator (or partly in one way and partly in the other).

34A transfer scheme may contain provision—

(a)for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the Regulator,

(b)for the creation in favour of the Authority of an interest in or right over, property retained by the Regulator,

(c)for the creation of rights and liabilities as between the Authority and the Regulator, or

(d)for any rights or liabilities specified or described in the scheme to be, or to be to any extent, enforceable by or against the Authority.

35A transfer scheme may make such supplementary, incidental and consequential provision as the Secretary of State considers appropriate.

Effect of transfer scheme

36On the date appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this paragraph, be transferred in accordance with the provisions of the scheme.

37Nothing in this Part affects the validity of anything done by or in relation to the Regulator in connection with anything transferred under a transfer scheme.

38There may be continued by or in relation to the Authority anything (including legal proceedings) relating to anything transferred by a transfer scheme which is in the process of being done by or in relation to the Regulator immediately before it is transferred.

39Anything done by the Regulator for the purpose of or in connection with anything transferred by a transfer scheme which is in effect immediately before it is transferred shall be treated as if done by the Authority.

40The Authority shall be substituted for the Regulator in documents and legal proceedings relating to anything transferred by a transfer scheme.

Transfer of employees

41(1)This paragraph applies where a person employed in the civil service of the state becomes an employee of the Authority under a transfer scheme.

(2)For the purposes of the [1996 c. 18.] Employment Rights Act 1996—

(a)his period of employment in the civil service of the state counts as a period of employment with the Authority, and

(b)the change of employment does not break the continuity of the period of employment.

Modification of transfer scheme

42(1)If at any time after a transfer scheme has come into force the Secretary of State considers it appropriate to do so, he may by order provide that the scheme shall for all purposes be deemed to have come into force with such modifications, other than modifications relating to the transfer of rights and liabilities under a contract of employment, as may be specified in the order.

(2)An order under sub-paragraph (1) may make, with effect from the coming into force of the scheme, such provision as could have been made by the scheme, and in connection with giving effect to that provision from that time may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(3)An order under sub-paragraph (1) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Provision of information to Secretary of State

43The Regulator shall provide the Secretary of State with all such information and other assistance as he may reasonably require for the purposes of or in connection with the exercise of any of the powers conferred on him by this Part of this Schedule.

Consultation

44Before making a transfer scheme, or an order modifying such a scheme, the Secretary of State shall consult the Regulator and the Authority.

Section 217.

SCHEDULE 18Transfer to SRA of BR’s functions relating to transport police

Part IFunctions

British Transport Commission Act 1949 (c.xxix)

1The British Transport Commission Act 1949 has effect subject to the following amendments.

2(1)Section 53 (transport police), in its application to England and Wales, is amended as follows.

(2)In subsection (1)—

(a)for “British Railways Board” substitute “Strategic Rail Authority”, and

(b)for “that Board” substitute “that Authority”.

(3)In subsection (1A)—

(a)for “British Railways Board” substitute “Strategic Rail Authority”, and

(b)for “that Board” substitute “that Authority”.

(4)In subsection (2) (as substituted by section 25(2) of the [1978 c. xxi.] British Railways Act 1978)—

(a)in paragraph (c), for “Commission” substitute “Authority”, and

(b)in paragraph (e), for the words from “which authority” to “is hereby” substitute “which authority any justice or the Chief Constable of the British Transport Police Force is hereby”.

(5)In subsection (3)—

(a)for “British Railways Board” (in each place) substitute “Strategic Rail Authority”, and

(b)for “that Board” (in both places) substitute “that Authority”.

3(1)Section 53, in its application to Scotland, is amended as follows.

(2)In subsection (1)—

(a)after the definition of “the approved scheme” insert—

“the Authority” means the Strategic Rail Authority;, and

(b)in the definition of “the Boards” omit “the British Railways Board”.

(3)In subsection (2)—

(a)for “any one or more” insert “the Authority or either or both”, and

(b)after “recommended to him” insert “by the Authority or”.

(4)In subsection (4)(a)—

(a)in sub-paragraph (i), for “any” substitute “the Authority or either”, and

(b)in sub-paragraph (ii), for “British Railways Board” substitute “the Authority”.

(5)In subsection (5)—

(a)for “Any one or more” substitute “The Authority or either or both”,

(b)after the first “except with the consent of” insert “the Authority or, as the case may be,”, and

(c)for “British Railways Board” substitute “the Authority”.

British Transport Commission Act 1962 (c.xlii)

4(1)Section 43 of the British Transport Commission Act 1962 (constables) is amended as follows.

(2)Omit subsection (1).

(3)In subsection (2), for “the said section 53” substitute “section 53 (constables) of the Act of 1949”.

Police and Criminal Evidence Act 1984 (c. 60)

5In section 6 of the Police and Criminal Evidence Act 1984 (stop and search powers: statutory undertakers etc.), in subsection (1A) (transport police), for “by the British Railways Board” substitute “by the Strategic Rail Authority”.

Channel Tunnel Act 1987 (c. 53)

6(1)Section 14 of the Channel Tunnel Act 1987 (arrangements for policing of tunnel system) is amended as follows.

(2)In subsection (2) (power of Board to provide constables or other assistance), for “Railways Board” substitute “Strategic Rail Authority”.

(3)In subsection (5) (payments by Kent police authority)—

(a)for “Railways Board” substitute “Strategic Rail Authority”, and

(b)for “Board” substitute “Authority”.

Railways Act 1993 (c. 43)

7The Railways Act 1993 has effect subject to the following amendments.

8In section 132 (scheme for organisation etc. of transport police), in subsection (1), in subsection (2) (in both places) and in subsections (3) and (4), for “Board” substitute “Authority”.

9In section 133(1) (terms and conditions of employment of transport police)—

(a)omit “continue to”, and

(b)for “Board” substitute “Authority”.

10In paragraph 3(2) of Schedule 10 (power of Secretary of State, after consultation with Board and others, to amend existing scheme for organisation of transport police), for “Board” (in both places) substitute “Authority”.

Part IIAssociated property, rights and liabilities

11All the property, rights and liabilities of the Board relating to the transport police force are by virtue of this paragraph transferred to the Authority.

12Nothing in this Part affects the validity of anything done by or in relation to the Board in connection with the transport police force.

13There may be continued by or in relation to the Authority anything (including legal proceedings) relating to the transport police force which is in the process of being done by or in relation to the Board when this Schedule comes into force.

14Anything done by the Board for the purpose of or in connection with the transport police force which is in effect immediately before the property, rights and liabilities of the Board relating to the transport police force are transferred to the Authority shall be treated as if done by the Authority.

15The Authority shall be substituted for the Board in private Acts, instruments made under Acts, other documents and legal proceedings relating to the transport police force.

16Where a transport police officer or other person employed by the Board for the purposes of the transport police force becomes an employee of the Authority by virtue of this section—

(a)for the purposes of Part XI of the [1996 c. 18.] Employment Rights Act 1996, he shall not be regarded as having been dismissed by virtue of the transfer, and

(b)for the purposes of that Act, his period of employment with the Board counts as a period of employment with the Authority and the change of employment does not break the continuity of the period of employment.

17In this Part of this Schedule—

  • “the property, rights and liabilities relating to the transport police force” means the property, rights and liabilities comprised in the part of the Board’s undertaking which constitutes the transport police force (including, in particular, rights and liabilities relating to transport police officers and other persons employed by the Board for the purposes of the transport police force),

  • “the transport police force” means the British Transport Police Force, and

  • “transport police officers” means the constables appointed under section 53 of the [1949 c. xxix.] British Transport Commission Act 1949.

Section 218.

SCHEDULE 19Transfer to SRA of BR’s property etc

Transfer schemes

1(1)The Secretary of State may make one or more schemes for the transfer to the Authority of any property, rights and liabilities of the Board, other than the property, rights and liabilities relating to the transport police transferred under Schedule 18.

(2)In this Schedule “transfer scheme” means a scheme under this paragraph.

Contents of transfer scheme

2(1)The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.

(2)The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.

3A transfer scheme may define the property, rights and liabilities to be transferred to the Authority by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the Board (or partly in one way and partly in the other).

4A transfer scheme may contain provision—

(a)for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the Board,

(b)for the creation in favour of the Authority of an interest in or right over, property retained by the Board,

(c)for the creation of rights and liabilities as between the Authority and the Board, or

(d)for any rights or liabilities specified or described in the scheme to be, or to be to any extent, enforceable by or against the Authority.

5A transfer scheme may make such supplementary, incidental and consequential provision as the Secretary of State considers appropriate.

Functions under legislation

6(1)A transfer scheme may provide that any functions of the Board under a statutory provision shall be transferred to the Authority.

(2)Sub-paragraph (1) applies in relation to any function under a statutory provision if and to the extent that the statutory provision—

(a)relates to any property which is to be transferred by the scheme, or

(b)authorises the carrying out of works designed to be used in connection with any such property or the acquisition of land for the purpose of carrying out any such works.

(3)In this paragraph “statutory provision” means a provision whether of a general or of a special nature contained in, or in any document made or issued under, any Act (whether of a general or a special nature) other than the [1993 c. 43.] Railways Act 1993 or this Part.

Effect of transfer scheme

7On the date appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this paragraph, be transferred in accordance with the provisions of the scheme.

8Nothing in this Part affects the validity of anything done by or in relation to the Board in connection with anything transferred by a transfer scheme.

9There may be continued by or in relation to the Authority anything (including legal proceedings) relating to anything transferred by a transfer scheme which is in the process of being done by or in relation to the Board immediately before it is transferred.

10Anything done by the Board for the purpose of or in connection with anything transferred by a transfer scheme which is in effect immediately before it is transferred shall be treated as if done by the Authority.

11The Authority shall be substituted for the Board in documents and legal proceedings relating to anything transferred by a transfer scheme.

Transfer of employees

12Where a person employed by the Board becomes an employee of the Authority by virtue of a transfer scheme—

(a)for the purposes of Part XI of the [1996 c. 18.] Employment Rights Act 1996, he shall not be regarded as having been dismissed by virtue of the transfer, and

(b)for the purposes of that Act, his period of employment with the Board counts as a period of employment with the Authority and the change of employment does not break the continuity of the period of employment.

Foreign property, rights and liabilities

13(1)This paragraph applies where a transfer scheme provides for the transfer of any foreign property, rights or liabilities.

(2)Both the Board and the Authority shall take, as and when the Authority considers appropriate, the steps required to secure that the vesting in the Authority by virtue of the transfer scheme of the foreign property, rights or liabilities for the transfer of which the scheme provides is effective under the relevant foreign law.

(3)Until the vesting in the Authority by virtue of the transfer scheme of the foreign property, rights or liabilities is effective under the relevant foreign law, the Board shall hold the property or rights for the benefit of, or discharge the liabilities on behalf of, the Authority.

(4)Nothing in sub-paragraph (2) or (3) limits the effect under the law of any part of the United Kingdom of the vesting of the foreign property, rights or liabilities in the Authority by virtue of the transfer scheme.

(5)For the purposes of this paragraph—

(a)property, rights or liabilities are foreign property, rights or liabilities if any issue arising in relation to them in any proceedings would be determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom, and

(b)the law of that country or territory is the relevant foreign law in relation to them.

Modification of transfer scheme

14(1)If at any time after a transfer scheme has come into force the Secretary of State considers it appropriate to do so, he may by order provide that the scheme shall for all purposes be deemed to have come into force with such modifications, other than modifications relating to the transfer of rights and liabilities under a contract of employment, as may be specified in the order.

(2)An order under sub-paragraph (1) may make, with effect from the coming into force of the scheme, such provision as could have been made by the scheme, and in connection with giving effect to that provision from that time may contain such supplemental, consequential and transitional provision as the Secretary of State considers appropriate.

(3)An order under sub-paragraph (1) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Provision of information to Secretary of State

15The Board shall provide the Secretary of State with all such information and other assistance as he may reasonably require for the purposes of or in connection with the exercise of any of the powers conferred on him by this Part of this Schedule.

Consultation

16Before making a transfer scheme, or an order modifying such a scheme, the Secretary of State shall consult the Board and the Authority.

Section 219.

SCHEDULE 20SRA bye-laws

Introductory

1In this Schedule “bye-laws” means bye-laws under section 219.

Penalties

2Bye-laws may provide that any person contravening them is guilty of an offence and liable on summary conviction to a fine of an amount not exceeding—

(a)level 3 on the standard scale, or

(b)such lower amount as is specified in the bye-laws,

for each offence.

Confirmation

3Bye-laws shall not come into operation until they have been confirmed by the Secretary of State.

4(1)Before making an application for the confirmation of any bye-laws the Authority shall consult the operators of the railway assets to which the bye-laws relate.

(2)At least 28 days before making an application for the confirmation of any bye-laws the Authority shall publish in a manner approved by the Secretary of State a notice of—

(a)its intention to apply for confirmation, and

(b)the place at which, and time during which, a copy of the bye-laws will be open to public inspection.

(3)Any person affected by any of the bye-laws is entitled to make representations about them to the Secretary of State within a period of not less than 28 days specified in the notice.

(4)For at least 24 days before an application for confirmation of any bye-laws is made a copy of the bye-laws shall be kept—

(a)at the principal office of the Authority,

(b)at such of the stations designated for the purposes of this Schedule by the Authority as are affected by the bye-laws, and

(c)at the principal offices of the operators of the railway assets to which the bye-laws relate.

(5)The Authority shall supply (free of charge) one copy of the bye-laws to any person who applies for a copy or copies of them.

5(1)The Secretary of State may confirm with or without modification, or may refuse to confirm, any bye-laws submitted for confirmation.

(2)The Secretary of State may fix a date for the coming into operation of any byelaws confirmed by him; but if he does not do so, they shall come into operation at the end of the period of 28 days beginning with the day after that on which they are confirmed.

6(1)Copies of bye-laws which have been confirmed shall be printed and a copy shall be kept—

(a)at the principal office of the Authority,

(b)at such of the stations designated for the purposes of this Schedule by the Authority as are affected by the bye-laws, and

(c)at the principal offices of the operators of the railway assets to which the bye-laws relate.

(2)The Authority shall supply (free of charge) one copy of the bye-laws to any person who applies for a copy or copies of them.

Evidence

7The production of a printed copy of bye-laws which have been confirmed and on which there is indorsed a certificate purporting to be signed by the chief executive of the Authority, or a person authorised by the Authority to act for him, stating—

(a)that the bye-laws were made by the Authority,

(b)that the copy is a true copy of the bye-laws,

(c)that on a specified day the bye-laws were confirmed by the Secretary of State, and

(d)the date when the bye-laws came into operation,

shall be prima facie evidence of the facts stated in the certificate.

Varying and revoking

8The power to make bye-laws includes power to vary or revoke bye-laws.

Stations

9Before designating a station for the purposes of this Schedule the Authority shall consult the operator of the station and the operators of trains which stop at the station.

10For the purposes of this Schedule a station is affected by any bye-laws if—

(a)the bye-laws apply to the station,

(b)the station serves any network to which they apply, or

(c)trains to which they apply stop at the station.

Section 220.

SCHEDULE 21Transfer schemes by SRA

Transfers from Authority and its subsidiaries

1(1)The Authority may, with the consent of the Secretary of State, make schemes for the transfer of property, rights and liabilities (including rights and liabilities relating to contracts of employment) from the Authority or a company which is wholly owned by the Authority to any other person or persons specified in sub-paragraph (2).

(2)The persons referred to in sub-paragraph (1) are—

(a)the Authority,

(b)a company which is wholly owned by the Authority,

(c)the Secretary of State, and

(d)a franchise company.

Transfers of franchise assets

2(1)The Authority may make schemes for the transfer, at or after the end of a franchise period relating to a franchise agreement, to any person or persons specified in sub-paragraph (2) of property, rights and liabilities which, immediately before the end of that period, are for the time being designated as franchise assets for the purposes of the franchise agreement.

(2)The persons referred to in sub-paragraph (1) are—

(a)the Authority,

(b)a company which is wholly owned by the Authority, and

(c)a franchise company.

(3)On the day on which such a scheme comes into force the transferee shall pay the transferor (or vice versa) such sums as may be specified in, or determined in accordance with, the relevant franchise agreement (but subject to any other agreement made between the transferor and the transferee).

Contents of transfer scheme

3(1)The property, rights and liabilities which may be transferred by a transfer scheme include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.

(2)The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.

4A transfer scheme may define the property, rights and liabilities to be transferred by specifying them or describing them or by referring to all (or all except anything specified or described) of the property, rights and liabilities comprised in a specified part of the undertaking of the transferor (or partly in one way and partly in the other).

5A transfer scheme may contain provision—

(a)for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the transferor,

(b)for the creation in favour of the transferee of an interest in or right over property retained by the transferor,

(c)for the creation of rights and liabilities as between the transferor and transferee,

(d)for any rights or liabilities specified or described in the scheme to be, or to be to any extent, enforceable by or against the transferor or transferee (or both), and

(e)for imposing on the transferor or transferee an obligation to enter into such written agreements with, or execute such other instruments in favour of, the transferor or transferee or such other person as may be specified in the scheme.

6A transfer scheme may make such supplementary, incidental, transitional and consequential provision as the Authority considers appropriate.

Functions under legislation

7(1)A transfer scheme may provide that any functions of the transferor under a statutory provision—

(a)shall be transferred to the transferee,

(b)shall be concurrently exercisable by two or more transferees, or

(c)shall be concurrently exercisable by the transferor and one or more transferees.

(2)Sub-paragraph (1) applies in relation to any function under a statutory provision if and to the extent that the statutory provision—

(a)relates to any property which is to be transferred by the scheme, or

(b)authorises the carrying out of works designed to be used in connection with any such property or the acquisition of land for the purpose of carrying out any such works.

(3)In this paragraph “statutory provision” means a provision whether of a general or of a special nature contained in, or in any document made or issued under, any Act (whether of a general or a special nature) other than the [1993 c. 43.] Railways Act 1993 or this Part.

Effect of transfer scheme

8On the date appointed by a transfer scheme, the property, rights and liabilities which are the subject of the scheme shall, by virtue of this paragraph, be transferred in accordance with the provisions of the scheme.

9Nothing in this Part affects the validity of anything done by or in relation to the transferor in connection with anything transferred by a transfer scheme.

10There may be continued by or in relation to the transferee anything (including legal proceedings) relating to anything transferred by a transfer scheme which is in the process of being done by or in relation to the transferor immediately before it is transferred.

11Anything done by the transferor for the purpose of or in connection with anything transferred by a transfer scheme which is in effect immediately before it is transferred shall be treated as if done by the transferee.

12The transferee shall be substituted for the transferor in documents and legal proceedings relating to anything transferred by a transfer scheme.

Transfer of employees

13Where a person employed by the transferor becomes an employee of the transferee by virtue of a scheme under paragraph 1—

(a)for the purposes of Part XI of the [1996 c. 18.] Employment Rights Act 1996, he shall not be regarded as having been dismissed by virtue of the transfer, and

(b)for the purposes of that Act, his period of employment with the transferor counts as a period of employment with the transferee and the change of employment does not break the continuity of the period of employment.

Provision of information to Authority

14(1)Where the Authority proposes to make a transfer scheme, it may direct any person to whom or from whom property is to be transferred under the scheme to provide the Authority with such information as the Authority considers necessary to enable it to make the scheme within such time (being not less than 28 days from the giving of the direction) as may be specified in the direction.

(2)If a person fails to comply with a direction under sub-paragraph (1), the Authority may serve a notice on him requiring him—

(a)to produce to the Authority, at a time and place specified in the notice, any documents which are specified or described in the notice and are in his custody or under his control, or

(b)to provide to the Authority, at a time and place and in the form and manner specified in the notice, such information as may be specified or described in the notice.

(3)No person shall be required under this paragraph to produce any documents which he could not be compelled to produce in civil proceedings in the court or, in complying with any requirement for the provision of information, to provide any information which he could not be compelled to give in evidence in any such proceedings.

(4)A person who intentionally alters, suppresses or destroys any document which he has been required to produce by a notice under sub-paragraph (2) is guilty of an offence and liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum,

(b)on conviction on indictment, to a fine.

(5)If a person fails to comply with a notice under sub-paragraph (2), the court may, on the application of the Authority, make such order as the court thinks fit for requiring the failure to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.

(6)Any reference in this paragraph to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form; and the reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

(7)In this paragraph “the court” means the High Court, in relation to England and Wales, and the Court of Session, in relation to Scotland.

Modification of transfer scheme

15(1)If at any time after a transfer scheme has come into force the transferor and transferee so agree in writing, the scheme shall for all purposes be deemed to have come into force with such modifications as may be agreed.

(2)Sub-paragraph (1) does not apply in relation to modifications relating to the transfer of rights and liabilities under a contract of employment, unless the employee concerned is a party to the agreement.

(3)An agreement under sub-paragraph (1) may make, with effect from the coming into force of the scheme, such provision as could have been made by the scheme, and in connection with giving effect to that provision from that time may contain incidental, supplemental, consequential and transitional provision.

Interpretation

16In this Schedule—

  • “franchise company” means any body corporate which is, or is to be, the franchisee or the franchise operator under a franchise agreement,

  • “transfer scheme” means a scheme under paragraph 1 or 2,

  • “transferor” means the person from whom property, rights or liabilities are transferred by a transfer scheme, and

  • “transferee” means the person to whom any such property, rights or liabilities are so transferred.

Section 227.

SCHEDULE 22Renaming of rail users' consultative committees

Part IAmendments of Railways Act 1993

1The [1993 c. 43.] Railways Act 1993 has effect subject to the following amendments.

2(1)Section 2 (Rail Users' Consultative Committees) is amended as follows.

(2)In subsection (2), for “Users' Consultative Committees (in this Part referred to as “consultative committees”)” substitute “Passengers' Committees”.

(3)In subsection (3), for “consultative committee” substitute “Rail Passengers' Committee”.

(4)In subsection (4)—

(a)for “consultative committees” substitute “Rail Passengers' Committees”, and

(b)for “consultative committee” (in both places) substitute “Rail Passengers' Committee”.

(5)In subsection (5)—

(a)for “consultative committee” (in both places) substitute “Rail Passengers' Committee”, and

(b)for “consultative committees” (in both places) substitute “Rail Passengers' Committees”.

(6)In subsection (6)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “the committee” substitute “the Rail Passengers' Committee”.

(7)In subsections (6A) and (7), for “consultative committee” substitute “Rail Passengers' Committee”.

(8)In subsection (8), for “consultative committees” substitute “Rail Passengers' Committees”.

(9)In the sidenote, for “users' consultative committees” substitute “Passengers' Committees”.

3(1)Section 3 (Central Rail Users' Consultative Committee) is amended as follows.

(2)For subsection (2) substitute—

(2)There shall be a council to be known as the Rail Passengers' Council.

(3)In subsection (3)—

(a)for “Central Committee” substitute “Rail Passengers' Council”, and

(b)for “consultative committee” substitute “Rail Passengers' Committee”.

(4)In subsections (4) and (5), for “Central Committee” substitute “Rail Passengers' Council”.

(5)In the sidenote, for “Central Rail Users' Consultative Committee” substitute “Rail Passengers' Council”.

4(1)Section 43 (closures: notification to and functions of consultative committees) is amended as follows.

(2)In subsections (1) and (2), for “consultative committee” substitute “Rail Passengers' Committee”.

(3)In subsection (3), for—

(a)“consultative committee” (in both places), and

(b)“committee”,

substitute “Rail Passengers' Committee”.

(4)In subsection (4)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “Central Committee” substitute “Rail Passengers' Council”.

(5)In subsections (5), (6), (8), (10) and (12), for “consultative committee” substitute “Rail Passengers' Committee”.

(6)In the sidenote, for “consultative committees” substitute “Rail Passengers' Committees”.

5In section 46(2) (variation of closure conditions), for “consultative committee” substitute “Rail Passengers' Committee”.

6In section 48 (experimental railway passenger services)—

(a)in subsection (4) (in both places), and

(b)in subsection (7),

for “consultative committee” substitute “Rail Passengers' Committee”.

7In section 68(2) (requirement by Regulator to investigate and report), for “consultative committee” substitute “Rail Passengers' Committee”.

8(1)Section 76 (general duties of Central Committee) is amended as follows.

(2)In subsection (1), for “Central Committee” substitute “Rail Passengers' Council”.

(3)In subsection (2), for “Committee” (in each place) substitute “Rail Passengers' Council”.

(4)In subsection (3)—

(a)for “Central Committee” substitute “Rail Passengers' Council”,

(b)for “consultative committee” (in both places) substitute “Rail Passengers' Committee”, and

(c)for “the Committee” substitute “the Rail Passengers' Council”.

(5)In subsection (4)—

(a)for “Central Committee” substitute “Rail Passengers' Council”, and

(b)for “the Committee” (in both places) substitute “the Rail Passengers' Council”.

(6)In subsection (5), for—

(a)“the Central Committee” and

(b)“the Committee”,

substitute “the Rail Passengers' Council”.

(7)In subsection (6), for “Central Committee” (in both places) substitute “Rail Passengers' Council”.

(8)In subsection (7)—

(a)for “Central Committee” substitute “Rail Passengers' Council”, and

(b)for “the Committee” (in both places) substitute “the Rail Passengers' Council”.

(9)In the sidenote, for “Central Committee” substitute “Rail Passengers' Council”.

(10)In the heading before section 76, for “Central Committee and the consultative committees” substitute “Rail Passengers' Council and Rail Passengers' Committees”.

9(1)Section 77 (general duties of consultative committees) is amended as follows.

(2)In subsection (1), for “consultative committee” substitute “Rail Passengers' Committee”.

(3)In subsection (2)—

(a)for “the committee” (in each place) substitute “the Rail Passengers' Committee”, and

(b)for “Central Committee” substitute “Rail Passengers' Council”.

(4)In subsection (3)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “the committee” (in both places) substitute “the Rail Passengers' Committee”.

(5)In subsection (4)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “the committee” substitute “the Rail Passengers' Committee”.

(6)In subsection (5)—

(a)for “consultative committee” (in both places) substitute “Rail Passengers' Committee”, and

(b)for “Central Committee” substitute “Rail Passengers' Council”.

(7)In subsection (6)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “committee's” substitute “Rail Passengers' Committee's”.

(8)In subsection (8), for “consultative committee” substitute “Rail Passengers' Committee”.

(9)In subsection (9)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “the committee” (in both places) substitute “the Rail Passengers' Committee”.

(10)In the sidenote, for “consultative committees” substitute “Rail Passengers' Committees”.

10(1)Section 79 (annual report by Central Committee and each consultative committee) is amended as follows.

(2)In subsection (1)—

(a)for “Each committee” substitute “The Rail Passengers' Council and each of the Rail Passengers' Committees”,

(b)for “the committee's” substitute “its”, and

(c)for “Central Committee and the consultative committees” substitute “Rail Passengers' Council and the Rail Passengers' Committees”.

(3)In subsection (1A), for “consultative committee” substitute “Rail Passengers' Committee”.

(4)In subsection (2)—

(a)for “Each committee” substitute “The Rail Passengers' Council and each of the Rail Passengers' Committees”, and

(b)for “the committee” substitute “it”.

(5)In subsection (3)—

(a)for “under this section, a committee” substitute “made by it under this section, the Rail Passengers' Council or a Rail Passengers' Committee”, and

(b)for “the committee” substitute “the Rail Passengers' Council or the Rail Passengers' Committee”.

(6)In subsection (4)—

(a)omit the definition of “committee”, and

(b)in the definition of “first relevant financial year”, for the words after “to” substitute “the Rail Passengers' Council or any Rail Passengers' Committee, means the financial year in which it is established.”

(7)In the sidenote, for “Central Committee and the consultative committees” substitute “Rail Passengers' Council and the Rail Passengers' Committees”.

11(1)Section 145 (restriction on disclosure of information not to apply to disclosure for facilitating carrying out of certain functions) is amended as follows.

(2)In subsection (5), for “Central Committee or a consultative committee” substitute “Rail Passengers' Council or a Rail Passengers' Committee”.

(3)For subsection (7) substitute—

(7)The references in subsection (5) above to a Rail Passengers' Committee includes the London Transport Users' Committee.

12(1)Schedule 2 (Rail Users' Consultative Committees) is amended as follows.

(2)Omit paragraph 1.

(3)In paragraphs 2 and 4, for “the committee” substitute “a Rail Passengers' Committee”.

(4)In paragraph 5—

(a)for “the committee” (in each place) substitute “a Rail Passengers' Committee”,

(b)for “The committee” (in both places) substitute “A Rail Passengers' Committee”,

(c)for “Central Committee” (in both places) substitute “Rail Passengers' Council”, and

(d)for “consultative committees” substitute “Rail Passengers' Committees”.

(5)In paragraph 6—

(a)for “the committee” (in each place) substitute “a Rail Passengers' Committee”, and

(b)for “The committee” substitute “A Rail Passengers' Committee”.

(6)In paragraph 7—

(a)for “The committee” substitute “A Rail Passengers' Committee”, and

(b)for “the committee” (in each place) substitute “a Rail Passengers' Committee”.

(7)Omit paragraphs 9 and 10.

(8)In the heading, for “USERS' CONSULTATIVE” substitute “PASSENGERS'”.

13(1)Schedule 3 (Central Rail Users' Consultative Committee) is amended as follows.

(2)Omit paragraph 1.

(3)In paragraphs 2 and 4, for “committee” substitute “Rail Passengers' Council”.

(4)In paragraph 5—

(a)for “consultative committee” (in both places) substitute “Rail Passengers' Committee”, and

(b)for “committee” (in each other place) substitute “Rail Passengers' Council”.

(5)In paragraph 6, for “committee” (in each place) substitute “Rail Passengers' Council”.

(6)In paragraph 7, for “committee” (in each place) substitute “Rail Passengers' Council”.

(7)Omit paragraph 9.

(8)In the heading, for “CENTRAL RAIL USERS' CONSULTATIVE COMMITTEE” substitute “RAIL PASSENGERS' COUNCIL”.

14In Schedule 5 (alternative closure procedure)—

(a)for “consultative committee” (in each place) substitute “Rail Passengers' Committee”,

(b)for “the committee” (in each place) substitute “the Rail Passengers' Committee”,

(c)for “committees” (in both places) substitute “Rail Passengers' Committees”, and

(d)for “Central Committee” substitute “Rail Passengers' Council”.

Part IIAmendments of other enactments

Transport Act 1962 (c. 46)

15(1)Section 56 of the Transport Act 1962 (functions of Central Committee and consultative committees) is amended as follows.

(2)In subsection (4)—

(a)for the words from “duty” to “consider” substitute “duty of the Rail Passengers' Council and each Rail Passengers' Committee to consider”,

(b)for “the committee” (in each place) substitute “the Rail Passengers' Council or Rail Passengers' Committee”,

(c)for “each committee” substitute “each Rail Passengers' Committee”,

(d)for “any consultative committee, to the Central Committee” substitute “any Rail Passengers' Committee, to the Rail Passengers' Council”, and

(e)for “Central Committee and the consultative committees for Scotland and for Wales and Monmouthshire” substitute “Rail Passengers' Council and the Rail Passengers' Committees for Scotland and for Wales”.

(3)In subsection (5)—

(a)for “Central Committee” substitute “Rail Passengers' Council”, and

(b)for the words after “consideration by” substitute “a Rail Passengers' Committee or which has been previously considered by a Rail Passengers' Committee.”

(4)In subsection (6ZA)—

(a)for “consultative committee” substitute “Rail Passengers' Committee”, and

(b)for “that committee and the Central Committee” substitute “that Rail Passengers' Committee and the Rail Passengers' Council”.

(5)In subsection (6A), for “A consultative committee” substitute “A Rail Passengers' Committee”.

(6)For subsection (20) substitute—

(20)References in this section to a Rail Passengers' Committee shall be construed, in relation to the Greater London area within the meaning of section 2 of the [1993 c. 43.] Railways Act 1993, as references to the London Transport Users' Committee.

Parliamentary Commissioner Act 1967 (c. 13)

16In Schedule 2 to the Parliamentary Commissioner Act 1967 (which lists the bodies subject to the jurisdiction of the Parliamentary Commissioner), insert (at the appropriate places in alphabetical order)—

Rail Passengers' Committees.

Rail Passengers' Council.

Transport Act 1968 (c. 73)

17In section 55(1) of the Transport Act 1968 (exclusion of Waterways Board), for “the Central Committee and the consultative committees, within the meaning of that section,” substitute “the Rail Passengers' Council and the Rail Passengers' Committees”.

Chronically Sick and Disabled Persons Act 1970 (c. 44)

18In section 14(1) of the Chronically Sick and Disabled Persons Act 1970 (appointments to advisory committees), for “the Rail Users' Consultative Committees,” substitute “Rail Passengers' Committees,”.

House of Commons Disqualification Act 1975 (c. 24)

19In Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices), insert (at the appropriate places in alphabetical order)—

Member of a Rail Passengers' Committee in receipt of remuneration.

Member of the Rail Passengers' Council in receipt of remuneration.

Channel Tunnel Act 1987 (c. 53)

20In section 41(1) of the Channel Tunnel Act 1987 (consultative committees), for the words from “Central” to “Users Consultative” substitute “Rail Passengers' Council and each of the Rail Passengers' ”.

Greater London Authority Act 1999 (c. 29)

21The Greater London Authority Act 1999 has effect subject to the following amendments.

22In section 247(3)(b) (London Transport Users' Committee), for “Rail Users' Consultative Committee” substitute “Rail Passengers' Committee”.

23In section 252 (London Transport Users' Committee as Rail Users' Consultative Committee)—

(a)in subsection (1), for “Rail Users' Consultative Committee” substitute “Rail Passengers' Committee”, and

(b)in the sidenote, for “rail users' consultative committee” substitute “Rail Passengers' Committee”.

24In paragraph 11(3) of Schedule 18 (minutes of London Transport Users' Committee meetings), for “Central Rail Users' Consultative Committee” substitute “Rail Passengers' Council”.

Section 229.

SCHEDULE 23Finances and procedures of rail users' consultative committees

Introductory

1Schedules 2 and 3 to the [1993 c. 43.] Railways Act 1993 (consultative committees and Central Committee) have effect subject to the following amendments.

Remuneration of members

2(1)In paragraph 2 of Schedule 2 (remuneration of, and allowances for, chairman of consultative committees), after “chairman” insert “and other members”.

(2)In the heading before that paragraph for “the chairman” substitute “members”.

(3)After that paragraph insert—

2AIf a person ceases to hold office as chairman or another member of a Rail Passengers' Committee by reason of the abolition of the Committee before his term of office would otherwise have expired, the Authority may, if it determines that there are special circumstances which make it right that he should receive compensation, pay to him such compensation as may be determined by the Authority.

(4)Omit paragraph 3 of that Schedule (allowances for other members).

3(1)In paragraph 2 of Schedule 3 (remuneration of, and allowances for, chairman of Central Committee), after “chairman” insert “and other members”.

(2)In the heading before that paragraph for “the chairman” substitute “members”.

(3)Omit paragraph 3 of that Schedule (allowances for other members).

Financial duties

4(1)Paragraph 8 of Schedule 2 (financial provisions relating to consultative committees) is amended as follows.

(2)In sub-paragraph (1)(b), for “the committee in accordance with any statement approved under sub-paragraph (3) below” substitute “a Rail Passengers' Committee (provided that the Rail Passengers' Committee complied with their financial duties in incurring them)”.

(3)For sub-paragraphs (2) and (3) substitute—

(2)The Authority may determine the financial duties of Rail Passengers' Committees; and different determinations may be made for different functions of Rail Passengers' Committees.

(3)The Authority shall give a Rail Passengers' Committee notice of every determination of their financial duties; and such a determination may—

(a)relate to a period beginning before, on or after the date on which it is made;

(b)contain supplementary provisions; and

(c)be varied by a subsequent determination.

5(1)Paragraph 8 of Schedule 3 (financial provisions relating to Central Committee) is amended as follows.

(2)In sub-paragraph (1)(b), for “committee in accordance with any statement approved under sub-paragraph (3) below” substitute “Rail Passengers' Council (provided that the Rail Passengers' Council complied with their financial duties in incurring them)”.

(3)For sub-paragraphs (2) and (3) substitute—

(2)The Authority may determine the financial duties of the Rail Passengers' Council; and different determinations may be made for different functions of the Rail Passengers' Council.

(3)The Authority shall give the Rail Passengers' Council notice of every determination of its financial duties; and such a determination may—

(a)relate to a period beginning before, on or after the date on which it is made;

(b)contain supplementary provisions; and

(c)be varied by a subsequent determination.

Procedures

6In paragraph 6(2) of Schedule 2 (admission of public to meetings: items of business from which public are excluded), insert at the end or

(d)the circumstances are such as are specified in, or determined by resolution of a Rail Passengers' Committee in accordance with, an order made by the Secretary of State.

7In paragraph 6(2) of Schedule 3 (admission of public to meetings: items of business from which public are excluded), insert at the end or

(d)the circumstances are such as are specified in, or determined by a resolution of the Rail Passengers' Council in accordance with, an order made by the Secretary of State.

Sub-committees and committees

8In paragraph 7(1) of Schedule 2 (sub-committees of consultative committees), omit “, with the approval of the Regulator”.

9In paragraph 7(1) of Schedule 3 (sub-committees of Central Committee)—

(a)omit “, with the approval of the Regulator”,

(b)for “sub-committees” substitute “committees”, and

(c)for “sub-committee” (in both places) substitute “committee”.

Public records

10In the First Schedule to the [1958 c. 51.] Public Records Act 1958 (definition of public records), in Part II of the Table at the end of paragraph 3, insert (at the appropriate place in alphabetical order)—

Rail Passengers' Committees.
Rail Passengers' Council.

Section 231.

SCHEDULE 24Review of access charges by Regulator

The Schedule to be inserted after Schedule 4 to the [1993 c. 43.] Railways Act 1993 is as follows—

SCHEDULE 4AReview of access charges by Regulator

Introductory

1(1)For the purposes of this Schedule an access charges review is a review by the Regulator of the terms of an access agreement, or of the terms of an access agreement and the conditions of any linked licence, as to—

(a)the amounts payable under the access agreement by one of the parties to the other; and

(b)the times at which, and manner in which, those amounts are payable.

(2)In this Schedule “linked licence”, in relation to an access agreement, means a licence of which the holder is—

(a)the facility owner, or installation owner, who is a party to the access agreement; or

(b)any other person who has an estate or interest in, or right over, the railway facility or network installation to which the access agreement relates.

Main provisions

2(1)The procedure for the implementation of an access charges review shall be as provided for by paragraphs 4 to 16 of this Schedule.

(2)And any procedure relating to the implementation of an access charges review for which the access agreement or any linked licence makes provision shall not apply.

3An access charges review may include a consideration of—

(a)the time at which the next access charges review in relation to the access agreement may be undertaken; and

(b)circumstances in which an access charges review in relation to the access agreement may be undertaken before that time.

Review notice

4(1)The implementation of an access charges review shall be initiated by the Regulator giving notice (a “review notice”)—

(a)stating his conclusions on the access charges review and the reasons why he reached those conclusions;

(b)specifying the relevant changes which he proposes to make for or in connection with giving effect to those conclusions;

(c)stating, in relation to each of the proposed relevant changes, the date on which he proposes that it should come into operation; and

(d)specifying the period (not being less than six weeks from the date of publication of the notice) within which objections with respect to any of the proposed relevant changes, or the date on which it is proposed that it should come into operation, may be made by a person within sub-paragraph (4)(a) or (b) below.

(2)In this Schedule “relevant changes”, in relation to an access agreement, means—

(a)amendments of the access agreement;

(b)modifications of the conditions of any linked licence; or

(c)both such amendments and such modifications;

and references to the making of relevant changes are, in the case of amendments of the access agreement, references to directing the parties to the access agreement to make the amendments to the access agreement.

(3)The review notice shall be given—

(a)by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the proposed relevant changes; and

(b)by serving a copy on the persons specified in sub-paragraph (4) below.

(4)The persons referred to in sub-paragraph (3)(b) above are—

(a)the facility owner, or installation owner, who is a party to the access agreement;

(b)any other person who has an estate or interest in, or right over, the railway facility or network installation to which the access agreement relates and who the Regulator considers ought to be given a copy; and

(c)the beneficiary.

(5)In this Schedule “the beneficiary”—

(a)in relation to an access contract, has the meaning given by section 17(7) of this Act; and

(b)in relation to an installation access contract, has the meaning given by section 19(10) of this Act.

Notice of agreement

5(1)If no objections are duly made by a person within paragraph 4(4)(a) or (b) above (or any that are so made are withdrawn), the Regulator shall give notice (a “notice of agreement”) stating that fact.

(2)The notice of agreement shall be given—

(a)by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the proposed relevant changes; and

(b)by serving a copy on the beneficiary.

Termination notice

6(1)After a copy of a notice of agreement is served on the beneficiary, he may give notice (a “termination notice”) terminating the access agreement.

(2)The termination notice shall specify the date on which the access agreement is to terminate.

(3)The termination notice shall be given by serving a copy on—

(a)the facility owner or installation owner;

(b)any other person who has an estate or interest in, or right over, the railway facility or network installation and who received a copy of the review notice; and

(c)the Regulator.

(4)The date specified by the termination notice as that on which the access agreement is to terminate shall be neither—

(a)less than six months, nor

(b)more than one year,

after the copy of the termination notice is served on the facility owner or installation owner.

(5)The termination notice may not be given after the end of the period of 28 days beginning with the day on which the copy of the notice of agreement is served on the beneficiary.

Review implementation notice

7(1)After a copy of a notice of agreement is served on the beneficiary and the time within which a termination notice may be given by him has expired—

(a)if he has not given a termination notice (or has withdrawn any notice which he has given), the Regulator shall (unless he acts under paragraph 8(2) below) give a review implementation notice; or

(b)if he has given (and not withdrawn) a termination notice, the Regulator may give such a notice.

(2)A review implementation notice is a notice stating that the Regulator’s conclusions on the access charges review are to be implemented as proposed in the review notice.

(3)The review implementation notice shall—

(a)specify the relevant changes which the Regulator is making; and

(b)state, in relation to each of the relevant changes, the date on which it comes into operation.

(4)The review implementation notice shall be given—

(a)by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the relevant changes; and

(b)by serving a copy on the persons on whom a copy of the review notice was served, the Authority and the Health and Safety Executive.

New review notice or Competition Commission reference

8(1)This paragraph applies if—

(a)objections are duly made by a person within paragraph 4(4)(a) or (b) above (and not withdrawn); or

(b)although no objections are duly made by a person within paragraph 4(4)(a) or (b) above (or any that are so made are withdrawn), relevant objections are duly made (and not withdrawn) in relation to a similar review notice relating to another access agreement.

(2)The Regulator may—

(a)give a new review notice under paragraph 4 above; or

(b)make a reference to the Competition Commission under paragraph 9 below.

(3)For the purposes of sub-paragraph (1) above—

(a)“relevant objections”, in relation to another access agreement, means objections by a person who is within paragraph 4(4)(a) or (b) above in relation to that other access agreement; and

(b)one review notice is similar to another if they make provision which, in the opinion of the Regulator, is to broadly the same effect.

(4)Before acting under sub-paragraph (1) above, the Regulator shall consider the objections referred to in that sub-paragraph.

(5)If the Regulator gives a new review notice under paragraph 4 above by virtue of sub-paragraph (2)(a) above, the references in that paragraph and paragraph 7(2) above to his conclusions on the access charges review shall be read in relation to the new notice as references to those conclusions as modified since the previous review notice (in particular as the result of any objections or representations made in relation to it).

Reference to Competition Commission

9(1)A reference to the Competition Commission under this paragraph shall be so framed as to require them to investigate and report on the questions specified in sub-paragraph (2) below.

(2)Those questions are—

(a)whether the matters considered on the access charges review which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b)if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by the making of relevant changes.

(3)The Regulator may, at any time, by notice given to the Competition Commission vary a reference under this paragraph—

(a)by adding to the matters specified in the reference; or

(b)by excluding from the reference some or all of the matters so specified.

(4)On receipt of such a notice the Competition Commission shall give effect to the variation.

(5)The Regulator may specify in a reference under this paragraph, or a variation of such a reference, for the purpose of assisting the Competition Commission in carrying out the investigation on the reference—

(a)any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b)any relevant changes by which, in his opinion, those effects could be remedied or prevented.

(6)As soon as practicable after making a reference under this paragraph, or a variation of such a reference, the Regulator—

(a)shall serve a copy of the reference or variation on the persons on whom a copy of the review notice was served; and

(b)shall publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

(7)For the purpose of assisting the Competition Commission in carrying out an investigation on a reference under this paragraph, the Regulator shall give to the Competition Commission any information in his possession which relates to matters falling within the scope of the investigation and—

(a)is requested by the Competition Commission for that purpose; or

(b)is information which, in his 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 power to give, in relation to any such matters.

(8)For the purpose of carrying out such an investigation, the Competition Commission shall take account of any information given to them for that purpose under sub-paragraph (7) above.

(9)In determining for the purposes of this paragraph whether any particular matter operates, or may be expected to operate, against the public interest, the Competition Commission shall have regard to the matters as respects which duties are imposed on the Regulator by section 4 of this Act.

10(1)The provisions mentioned in sub-paragraph (2) below are to apply in relation to references under paragraph 9 above as if—

(a)the functions of the Competition Commission in relation to those references were functions under the 1973 Act;

(b)the expression “merger reference” included a reference under that paragraph; and

(c)in section 70 of the 1973 Act references to the Secretary of State were references to the Regulator and the reference to three months were a reference to six months.

(2)The provisions are—

(a)sections 70 (time limit for report on merger), 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 [1998 c. 41.] 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).

Report on reference

11(1)In making a report on a reference under paragraph 9 above, the Competition Commission shall include in the report—

(a)definite conclusions on the questions comprised in the reference; and

(b)such an account of their reasons for those conclusions as in their opinion is expedient for facilitating a proper understanding of those questions and of their conclusions.

(2)Where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, they shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have.

(3)Where they conclude that any adverse effects so specified could be remedied or prevented by the making of relevant changes, they shall in the report—

(a)specify the relevant changes by which those effects could be remedied or prevented; and

(b)state, in relation to each of the relevant changes, the date on which it should come into operation.

(4)A date stated in the report as that on which a relevant change should come into operation may be a date before the report is made, provided that it is not before the earliest date specified in the review notice for the coming into operation of a relevant change proposed in it.

(5)Section 82 of the 1973 Act (general provisions as to reports) shall apply in relation to reports of the Competition Commission on references under paragraph 9 above as it applies to reports of the Competition Commission under that Act.

(6)A report of the Competition Commission on a reference under paragraph 9 above shall be made to the Regulator.

(7)The Regulator shall, on receiving such a report, send a copy of it to the Secretary of State and the Authority.

(8)Not less than 14 days after that copy is received by the Secretary of State, the Regulator shall send a copy to each of the persons on whom a copy of the review notice was served.

(9)Not less than 24 hours after complying with sub-paragraph (8) above, the Regulator shall publish the report in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

(10)If it appears to the Secretary of State that the publication of any matter in the report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days after he receives his copy of the report, direct the Regulator to exclude that matter from—

(a)every copy of the report sent under sub-paragraph (8) above, and

(b)the version of the report published under sub-paragraph (9) above.

Changes following report

12(1)Where a report of the Competition Commission on a reference under paragraph 9 above—

(a)includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest,

(b)specifies effects adverse to the public interest which those matters have or may be expected to have,

(c)includes conclusions to the effect that those effects could be remedied or prevented by the making of relevant changes, and

(d)specifies relevant changes by which those effects could be remedied or prevented,

the Regulator shall, subject to the following provisions of this paragraph and paragraph 13 below, make such relevant changes as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(2)Before making relevant changes under this paragraph, the Regulator shall have regard to the relevant changes specified in the report.

(3)Before making relevant changes under this paragraph, the Regulator shall give notice—

(a)stating that he proposes to make the relevant changes and setting out their effect,

(b)stating the reasons why he proposes to make the relevant changes,