The Railways Act 1993 (Determination of Turnover) Order 2005

Explanatory Note

(This note is not part of the Order)

This Order makes provision for the determination of the turnover of a relevant operator for the purposes of sections 55(7B) and 57A(3) of the Railways Act 1993 (“the Act”).

Section 55(1) and (2) provides that certain bodies have power to make final and provisional orders in order to secure compliance by relevant operators with relevant conditions or requirements (as such terms are defined in section 55(10)). Section 55(7A) provides that such power includes a power to require the relevant operator to pay a reasonable sum as is specified in, or determined in accordance with, the final or provisional order in the event of any specified contravention of the terms of the order.

Section 55(7B) provides that the amount of that reasonable sum shall not exceed 10 per cent. of the turnover of the relevant operator determined in accordance with an order made by the Secretary of State.

Until the provisions amending section 55 of the Act set out in paragraph 21 of Schedule 1 to the Railways Act 2005 are commenced, the bodies with power to make final and provisional orders under that section are the Strategic Rail Authority and the Office of Rail Regulation. Following commencement of these provisions, the relevant bodies will be the Secretary of State, the Scottish Ministers and the Office of Rail Regulation.

Section 57A(1) provides that certain bodies have power to impose a penalty on relevant operators where they are satisfied that a relevant operator has contravened or is contravening either a relevant condition or requirement or a final or provisional order.

Section 57A(3) provides that the amount of that penalty shall not exceed 10 per cent. of the turnover of the relevant operator determined in accordance with an order made by the Secretary of State.

Until the provisions amending section 57A of the Act set out in paragraph 23 of Schedule 1 to the Railways Act 2005 are commenced, the bodies with power to impose penalties under that section are the Strategic Rail Authority and the Office for Rail Regulation. Following commencement of those provisions, the relevant bodies will be the Secretary of State, the Scottish Ministers and the Office of Rail Regulation.

The term “public sector operator”, used in article 2(2)(a), is defined in section 25(1) of the Act, as amended by section 202 of the Greater London Authority Act 1999.

A full Regulatory Impact Assessment has been prepared on the effect of this Order on the costs of business. A copy of that assessment has been placed in the library of both Houses of Parliament. Copies may be obtained from the Department for Transport, Great Minster House, 76 Marsham Street, London SW1P 4DR. The assessment may also be accessed by visiting the website of the Office of Public Sector Information at www.opsi.gov.uk.