22B Applications for directions under section 22A: procedure.
(1) Schedule 4 to this Act shall have effect with respect to applications for directions under section 22A above as it has effect with respect to applications for directions under section 17 above (but subject as follows).
(2) In its application by virtue of this section Schedule 4 to this Act has effect with the following modifications—
(a) in paragraph 1, in the definition of “the facility owner", for “17(1)" there shall be substituted “22A" and, in the definition of “interested person", for “enter into the required access contract" there shall be substituted “make the amendments";
(b) in paragraph 2(1), for “which the applicant proposes should be contained in the required access contract" and “to be contained in the required access contract" there shall be substituted “of the proposed amendments";
(c) in paragraph 5(2), for “to the facility owner requiring him to enter into an access contract" there shall be substituted “under section 22A of this Act";
(d) for paragraph 5(2)(a)(i) and (ii) there shall be substituted “the amendments to be made and the date by which they are to be made; and";
(e) in paragraph 6(2), for the words from “facility owner’s" to the end of paragraph (c) there shall be substituted “making of the amendments, the performance of the access agreement as amended or failing to take any step to protect the interests of the interested person in connection with the application for directions or the making of the amendments,"; and
(f) in paragraph 6(3), for “any access contract which is entered into" there shall be substituted “the amendments made";
and the definition of “the required access contract", and the words following that definition, in paragraph 1 and paragraph 5(4) shall be omitted.
(3) In its application by virtue of this section in relation to an application relating to an installation access contract Schedule 4 to this Act has effect with the following further modifications—
(a) references to the railway facility shall have effect as references to the network installation;
(b) references to the facility owner shall have effect as references to the installation owner; and
(c) in the definition of “interested person" in paragraph 1, for “17" there shall be substituted “19".
(4) The Regulator may determine that, in their application by virtue of this section in relation to any particular application, paragraphs 3 and 4 of Schedule 4 to this Act shall have effect as if for any of the numbers of days specified in them there were substituted the lower number specified by the Regulator.
(1) The Office of Rail and Road may give directions requiring the parties to an access agreement to make to the access agreement amendments which are, in its opinion, necessary to give effect to the conditions of a licence or otherwise required in consequence of the conditions of a licence.
(2) The Office of Rail and Road shall not have power to direct or otherwise require amendments to be made to an access agreement except in accordance with section 22A above, subsection (1) above or Schedule 4A to this Act.
(3) If an access agreement includes provision for any of its terms to be varied—
(a) by agreement of the parties, or
(b) by direction or other requirement of the Office of Rail and Road,
a variation made pursuant to that provision shall not be regarded for the purposes of section 22 above or subsection (2) above as an amendment of the agreement.
(1) It shall be the duty of the appropriate designating authority from time to time to designate such services for the carriage of passengers by railway (other than services which are, by virtue of section 24 below, exempt from designation under this subsection) as it considers ought to be provided under sections 30 to 30C .
(2) The appropriate designating authority may perform its duty under subsection (1) above by designating particular services or services of a class or description.
(2ZA) Where the Scottish Ministers designate Scotland-only services, they may also designate cross-border services which—
(a) they consider should be provided together with particular Scotland-only services or a particular class of them; and
(b) are not exempt from designation under subsection (1) by virtue of section 24.
(2ZB) Nothing in this section requires the Secretary of State to designate a cross-border service already designated by the Scottish Ministers.
(2ZC) Before the Secretary of State or the Scottish Ministers designate a cross-border service he or they must consult the other.
(2ZD) Where the Welsh Ministers designate Wales-only services, they may also designate Welsh components of Welsh services which—
(a) they consider should be provided together with particular Wales-only services or a particular class of Wales-only services; and
(b) are not exempt from designation under subsection (1) by virtue of section 24.
(2ZE) Nothing in this section requires the Secretary of State to designate a Welsh service so far as already designated by the Welsh Ministers.
(2A) A designation may be varied or revoked; but a variation or revocation of the designation of particular services, or services of a class or description, shall not affect any franchise agreement previously entered into with respect to those services or services of that class or description.
(2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) In this Part—
“the appropriate designating authority”—
in relation to Scotland-only services, means the Scottish Ministers; ...
in relation to Wales-only services, means the Welsh Ministers; and
in relation to all other services, means the Secretary of State;
“the appropriate franchising authority”—
in relation to a Scottish franchise agreement, means the Scottish Ministers; ...
in relation to a Welsh franchise agreement to the extent that the franchised services under it are Wales-only services or Welsh components of Welsh services, means the Welsh Ministers;
in relation to a Welsh franchise agreement to the extent that the franchised services under it are services other than Wales-only services or Welsh components of Welsh services, means the Secretary of State;
in relation to any other franchise agreement, means the Secretary of State;
“franchise agreement” means an agreement to which the Secretary of State, the Scottish Ministers or the Welsh Ministers is or are party, under which another party which is not a public sector company (as defined in section 30C) undertakes either—
to provide, or
to secure that a wholly owned subsidiary of his provides,
throughout the franchise term those services for the carriage of passengers by railway to which the agreement relates;
“franchise operator”, in relation to any franchise agreement, means the person (whether the franchisee or, as the case may be, the wholly owned subsidiary of the franchisee) who is to provide the franchised services;
“franchise period”, in relation to any franchise agreement, means the franchise term, except where the franchise agreement is terminated before the end of that term, in which case it means so much of that term as ends with that termination;
“franchise term”, in relation to any franchise agreement, means the period specified in the franchise agreement as the period throughout which the franchisee is to provide, or secure that a wholly owned subsidiary of his provides, the franchised services, and includes any such extension of that period as is mentioned in section 29(3) or 30A(2)(b) below;
“franchised services”, in relation to any franchise agreement, means the services for the carriage of passengers by railway which are to be provided under that franchise agreement;
“franchisee” means—
in relation to a franchise agreement under which a party undertakes to secure that a wholly owned subsidiary of his provides the franchised services, the party so undertaking; or
in relation to any other franchise agreement, the person who is to provide the franchised services.
(4) Any reference in this Part to the provision of services under a franchise agreement is a reference to the provision of those services by the franchise operator; and where the franchise operator is, or is to be, a wholly owned subsidiary of the franchisee, any reference to the provision of services by the franchisee under a franchise agreement shall accordingly be construed as a reference to his securing their provision by the franchise operator.
24 Exemption of passenger services from section 23(1).
(1) The appropriate designating authority may by order grant exemption from designation under section 23(1) above in respect of such services for the carriage of passengers by railway as may be specified in the order, but subject to compliance with such conditions (if any) as may be so specified.
(2) An exemption under subsection (1) above may be granted—
(a) to persons of a particular class or description or to a particular person; and
(b) in respect of services generally, services of a particular class or description or a particular service, or in respect of part only of any such services or service;
and an exemption granted to persons of a particular class or description shall be published in such manner as the appropriate designating authority considers appropriate for bringing it to the attention of persons of that class or description.
(3) If a person who provides, or who proposes to introduce, services for the carriage of passengers by railway makes an application to the appropriate designating authority under this subsection for the grant of an exemption from designation under section 23(1) above in respect of any such service which he provides or proposes to introduce, the appropriate designating authority , after consultation with the Office of Rail and Road . . . —
(a) may either grant or refuse the exemption, whether wholly or to such extent as the appropriate designating authority may specify in the exemption; and
(b) if and to the extent that the appropriate designating authority grants it, may do so subject to compliance with such conditions (if any) as the appropriate designating authority may so specify.
(3A) Before granting an exemption in respect of a cross-border service, the Secretary of State must consult the Scottish Ministers.
(3B) Before granting an exemption in respect of a Welsh service, the Secretary of State must consult the Welsh Ministers.
(4) Before granting an exemption under subsection (3) above, the appropriate designating authority shall give notice—
(a) stating that it proposes to grant the ... exemption,
(b) stating the reasons why it proposes to grant the ... exemption, and
(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed ... exemption may be made,
and shall consider any representations or objections which are duly made and not withdrawn.
(5) A notice under subsection (4) above shall be given by publishing the notice in such manner as the appropriate designating authority considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the ... exemption.
(6) If any condition (the “broken condition") of an exemption granted by the appropriate designating authority is not complied with, it may give to any relevant person a direction declaring that the ... exemption is revoked, so far as relating to that person, to such extent and as from such date as may be specified in the direction.
(7) For the purposes of subsection (6) above—
“condition”, in relation to an exemption, means any condition subject to compliance with which the exemption was granted;
“relevant person”, in the case of any ... exemption, means a person who has the benefit of the ... exemption and who—
is a person who failed to comply with the broken condition or with respect to whom the broken condition is not complied with; or
provides any of the services in relation to which the broken condition is not complied with.
(8) Subject to subsection (6) above, an exemption granted under this section, unless previously revoked in accordance with any term contained in the ... exemption, shall continue in force for such period as may be specified in, or determined by or under, the ... exemption.
(9) Any application for an exemption under subsection (3) above must be made in writing; and where any such application is made, the appropriate designating authority may require the applicant to furnish it with such information as the appropriate designating authority may consider necessary to enable it to decide whether to grant or refuse the ... exemption.
(10) Any ... exemption granted under subsection (3) above shall be in writing.
(11) Subsections (1) and (3) above apply in relation to the grant of an exemption under this section whether it is to become effective on, or after, the day on which section 23(1) above comes into force.
(12) An exemption under this section may make different provision for different cases.
(12A) A statutory instrument containing an order under this section by the Scottish Ministers is subject to annulment in pursuance of a resolution of the Scottish Parliament.
(12B) A statutory instrument containing an order under this section made by the Welsh Ministers is subject to annulment in pursuance of a resolution of the National Assembly for Wales.
(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24A ... Exemptions granted by Secretary of State or Welsh Ministers: operator agreements
(1) Conditions specified in an order under section 24 made by the Secretary of State or the Welsh Ministers may, in particular, include conditions which are to apply to any person providing services under an operator agreement.
(2) An order under section 24 made by the Secretary of State or the Welsh Ministers may include provision which, subject to any modifications that the Secretary of State considers appropriate or (as the case may be) that the Welsh Ministers consider appropriate, has an effect in connection with operator agreements which corresponds or is similar to the effect of the following provisions in connection with franchise agreements—
(a) section 27(3) of this Act (restrictions on transfer or creation of security over assets);
(b) section 27(5) of this Act (transactions entered into in breach of restrictions to be void);
(c) section 27(6) and (7) of this Act (no execution or other legal process etc in respect of assets);
(d) section 31 of this Act (disapplication of legislation: security of tenure of business premises);
(e) sections 55 to 58 of this Act (enforcement);
(f) section 12 of, and Schedule 2 to, the Railways Act 2005 (transfer schemes), subject to subsection (4) below.
(3) Provision included in an order by virtue of subsection (2) may be made by applying the provision in question, subject to any modifications that the Secretary of State considers appropriate or (as the case may be) that the Welsh Ministers consider appropriate.
(4) The provision which may be included in an order by virtue of subsection (2)(f) is subject to the following restrictions—
(a) it is to be provision which applies only where an operator agreement is or has been in force to which one of the following is or was party—
(i) a Passenger Transport Executive,
(ia) an STB,
(ii) a local transport authority, or
(iii) a relevant company;
(b) the person entitled under the provision to make a transfer scheme is to be a Passenger Transport Executive, an STB or local transport authority which—
(i) is or was party to the operator agreement, or
(ii) is the owner, or one of the owners, of a relevant company which is or was party to the operator agreement;
(c) the persons to whom assets may be transferred under a scheme made under the provision are to be—
(i) the Passenger Transport Executive, STB or local transport authority which makes the scheme;
(ii) any other Passenger Transport Executive, STB or local transport authority which—
(a) is or was party to the operator agreement, or
(b) is the owner, or one of the owners, of a relevant company which is or was party to the operator agreement;
(iii) a relevant company;
(iv) a person who is, or is to be, the operator under an operator agreement.
(5) In this section—
“local transport authority” has the same meaning as in Part 2 of the Transport Act 2000 (see section 108(4) of that Act);
“operator agreement” means any agreement which a person who has the benefit of an exemption under section 24 may enter into for another person (“the operator”) to provide the services (or any part of the services) in respect of which the exemption is granted;
“Passenger Transport Executive” means a body which is such an Executive for the purposes of Part 2 of the Transport Act 1968;
“relevant company” means—
a company that is wholly owned by a Passenger Transport Executive, an STB or a local transport authority, or
a company of which each owner is a Passenger Transport Executive, an STB or a local transport authority.
“STB” means a sub-national transport body established under section 102E of the Local Transport Act 2008.
25A Prohibition on franchise extensions and new franchises
(1) The franchise term in relation to a franchise agreement may not be extended except in accordance with section 30A (temporary continuation of existing franchises).
(2) The Secretary of State may not enter into a franchise agreement except in accordance with section 30A.
(3) The Welsh Ministers and the Scottish Ministers may not enter into a franchise agreement.
(1) The Authority shall give notice under subsection (2) below if—
(a) it has issued an invitation to tender for the provision of any services under section 26 above (otherwise than in compliance with a direction under subsection (3)(b) below); but
(b) although it has received a tender or tenders in response to the invitation, it considers that the services would be provided more economically and efficiently than under a franchise agreement entered into pursuant to the tender or any of the tenders if the Authority provided them or secured their provision otherwise than under a franchise agreement.
(2) The notice shall be given to—
(a) the Secretary of State; and
(b) the person, or each of the persons, who submitted a tender.
(3) On receipt of the notice under paragraph (a) of subsection (2) above the Secretary of State shall (after considering the matter and any representations duly made in response to a notice under paragraph (b) of that subsection and not withdrawn) give to the Authority—
(a) a direction to reconsider the tender or tenders with a view to selecting a franchisee, or
(b) a direction to issue new invitations to tender for the provision of the services under section 26 above,
as he considers appropriate.
(4) The Authority shall give notice under subsection (5) below if it has issued an invitation to tender for the provision of any services under section 26 above in compliance with a direction under subsection (3)(b) above but either—
(a) it has received no tenders in response to the invitation; or
(b) although it has received a tender or tenders in response to the invitation, it considers that the services would be provided more economically and efficiently than under a franchise agreement entered into pursuant to the tender or any of the tenders if the Authority provided them or secured their provision otherwise than under a franchise agreement.
(5) The notice shall be given to—
(a) the Secretary of State; and
(b) if the Authority received a tender or tenders, the person, or each of the persons, who submitted a tender.
(6) In a case where the Authority has received no tenders, on receipt of the notice under subsection (5)(a) above the Secretary of State shall give to the Authority a direction not to seek to secure the provision of the services under a franchise agreement.
(7) In a case where the Authority has received a tender or tenders, on receipt of the notice under paragraph (a) of subsection (5) above the Secretary of State shall (after considering the matter and any representations duly made in response to a notice under paragraph (b) of that subsection and not withdrawn) give to the Authority—
(a) a direction to reconsider the tender or tenders with a view to selecting a franchisee, or
(b) a direction not to seek to secure the provision of the services under a franchise agreement,
as he considers appropriate.
(8) Any notice under subsection (2)(b) or (5)(b) above shall specify a period (not being less than 28 days from the date of the service of the notice) within which representations may be made to the Secretary of State.
(9) The Secretary of State may at any time—
(a) revoke a direction under subsection (6) or (7)(b) above; and
(b) instead direct the Authority to issue new invitations to tender for the provision of the services under section 26 above.
(1) If the Secretary of State gives a direction under section 26B(3) or (7) above, he shall give notice to the person or persons who submitted the tender or tenders that he has done so.
(2) An application for the review of a decision of the Secretary of State to give a direction under section 26B(3) or (7) above may be made to the court by any person who submitted a tender within 42 days from the date of service on him of the notice under subsection (1) above.
(3) Except as provided by subsection (2) above, a direction under section 26A or 26B above shall not be questioned by any legal proceedings whatever.
(4) In subsection (2) above “the court” means—
(a) the High Court in relation to England and Wales; and
(b) the Court of Session in relation to Scotland.
(1) It shall be the duty of the responsible authority before entering into a franchise agreement to satisfy itself that if the franchise agreement is entered into—
(a) the initial franchise assets (if any) for that franchise agreement will be vested in the person who is to be the franchise operator; and
(b) if the franchise agreement is to be one under which the franchisee undertakes to secure that a wholly owned subsidiary of his provides the franchised services, that the franchise operator will be a wholly owned subsidiary of the franchisee.
(2) After a franchise agreement has been entered into, it shall be the duty of the responsible authority, before any property, rights or liabilities are subsequently designated as franchise assets in accordance with the terms of, or by amendment to, the franchise agreement, to satisfy itself that, if the property, rights or liabilities in question are so designated, they will be vested in the franchise operator.
(3) Without the consent of the responsible authority, the franchise operator shall not—
(a) if and to the extent that the franchise assets are property or rights—
(i) transfer or agree to transfer, or create or agree to create any security over, any franchise assets or any interest in, or right over, any franchise assets; or
(ii) create or extinguish, or agree to create or extinguish, any interest in, or right over, any franchise assets; and
(b) if and to the extent that the franchise assets are liabilities, shall not enter into any agreement under which any such liability is released or discharged, or transferred to some other person.
(4) Where the franchise agreement is one under which the franchisee undertakes to secure that a wholly owned subsidiary of his provides the franchised services, the franchisee shall not, without the consent of the responsible authority, take any action which would result in the franchise operator ceasing to be a wholly owned subsidiary of his.
(5) Any transaction which is entered into in contravention of subsection (3) or (4) above shall be void.
(6) In England and Wales, no execution or other legal process may be commenced or continued, and no distress may be levied and no power to use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 may be exercised, against any property which is, or rights which are, franchise assets in the case of any franchise agreement.
(7) In Scotland, no diligence or other legal process may be carried out or continued against any property which is, or rights which are, franchise assets in the case of any franchise agreement.
(8) In any case where—
(a) there are to be initial franchise assets in relation to a franchise agreement,
(b) a franchise agreement is to be one which provides for subsequent designation of property, rights or liabilities as franchise assets, or
(c) property, rights or liabilities are to be designated as franchise assets by an amendment made to a franchise agreement,
the responsible authority shall ensure that the franchise agreement includes provision specifying, or providing for the determination of, amounts to be paid in respect of the property, rights and liabilities which, immediately before the end of the franchise period, constitute the franchise assets in relation to that franchise agreement if and to the extent that they are transferred by a scheme under section 12 of the Railways Act 2005 at or after the end of that period.
(9) Without prejudice to the generality of the provisions that may be included in a franchise agreement with respect to the acquisition, provision, disposal or other transfer of property, rights or liabilities (whether franchise assets or not), the responsible authority may undertake in a franchise agreement to exercise its powers under section 12 of the Railways Act 2005 to transfer franchise assets to itself or another in such circumstances as may be specified in the franchise agreement.
(10) The responsible authority shall ensure that every franchise agreement includes such provision (if any) as it may consider appropriate in the particular case for the purpose of securing—
(a) that the franchise assets are adequately maintained, protected and preserved; and
(b) that, at the end of the franchise period, possession of such of the franchise assets as may be specified for the purpose in the agreement, or by the Franchising Director in accordance with the agreement, is delivered up to the Franchising Director or such other person as may be so specified.
(10A) In this section the “responsible authority”—
(a) in relation to a Scottish franchise agreement, means the Scottish Ministers;
(b) in relation to a Welsh franchise agreement the franchised services under which consist of Wales-only services, means the Welsh Ministers; and
(c) in relation to any other franchise agreement, means the Secretary of State.
(11) In this Part, “franchise assets”, in relation to any franchise agreement, means—
(a) any property, rights or liabilities which are designated as franchise assets in the franchise agreement as originally made (in this section referred to as the “initial franchise assets”), and
(b) any property, rights or liabilities which, after the making of the franchise agreement, are designated as franchise assets in accordance with the terms of, or by an amendment made to, the franchise agreement,
but does not include any property, rights or liabilities which, in accordance with the terms of, or by an amendment made to, the franchise agreement, have for the time being ceased to be designated as franchise assets.
(12) No rights or liabilities under contracts of employment shall be designated as franchise assets.
(13) In this section “security” has the meaning given by section 248(b) of the Insolvency Act 1986.
(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) A franchise agreement may include provision with respect to the fares to be charged for travel by means of the franchised services.
(2) Subject to the other provisions of this Act, if it appears to the appropriate franchising authority that the interests of persons who use, or who are likely to use, franchised services so require, it shall ensure that the franchise agreement in question contains any such provision as it may consider necessary for the purpose of securing that any fares, or any fares of a class or description, which are to be charged are, in its opinion, reasonable in all the circumstances of the case.
(3) Every franchise agreement shall include provision requiring the franchise operator—
(a) to participate in every approved discount fare scheme,
(b) to charge fares, in cases to which such a scheme applies, at rates which are not in excess of the levels or, as the case may be, the maximum levels set by the scheme, and
(c) otherwise to comply with the requirements of every such scheme,
if and to the extent that the franchised services are services, or services of a class or description, in relation to which the approved discount fare scheme in question applies.
(4) The discount fare schemes which are to be regarded , in relation to a franchise agreement, for the purposes of this section as “approved” are those which are from time to time approved for the purposes of this section by the appropriate franchising authority .
(5) In this section—
“discount fare scheme” means any scheme for enabling persons who are young, elderly or disabled to travel by railway at discounted fares, subject to compliance with such conditions (if any) as may be imposed by or under the scheme;
“discounted fare” means a lower fare than the standard fare for the journey in question;
“scheme” includes any agreement or arrangements.
29 Other terms and conditions of franchise agreements.
(1) A franchise agreement may require—
(a) the rendering to the Franchising Director by the franchisee or the franchise operator of payments of such amounts and at such intervals as may be specified in, or determined by or under, the franchise agreement; . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) A franchise agreement may include provision requiring the franchisee—
(a) to operate any additional railway asset; or
(b) to secure the operation of any additional railway asset by the franchise operator or any other wholly owned subsidiary of the franchisee.
(3) A franchise agreement shall include provision specifying the franchise term and may include provision enabling that term to be extended by such further term as may be specified in the franchise agreement.
(4) Without prejudice to the generality of the provisions relating to property, rights and liabilities that may be included in a franchise agreement, a franchise agreement may include provision requiring the franchise operator—
(a) to acquire from such person as may be specified in the franchise agreement, and to use, such property or rights as may be so specified; or
(b) to undertake such liabilities as may be so specified.
(5) Subject to any requirements imposed by or under this Act, a franchise agreement may contain any such provisions as the appropriate franchising authority may think fit.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) In this Part, “additional railway asset” means any network, station or light maintenance depot, and any reference to an additional railway asset includes a reference to any part of an additional railway asset.
(1) The relevant franchising authority shall provide, or secure the provision of, services for the carriage of passengers by railway where—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) a franchise agreement in respect of the services is terminated or otherwise comes to an end ... ....
(1A) The relevant franchising authority may secure the provision of services for the purpose of fulfilling the duty under subsection (1) only by making a direct award of a public service contract to a public sector company in accordance with regulation 17 (general direct award provision for rail) of the 2023 Regulations.
(1B) Regulation 22 (pre-award publication) of the 2023 Regulations does not apply in relation to an award made as mentioned in subsection (1A).
(1C) The duty in subsection (1) does not apply in respect of services at any time when they are being provided under section 30A (temporary continuation of existing franchises).
(3) Subsection (1) above does not—
(a) require the relevant franchising authority to provide or secure the provision of services if and to the extent that, in its opinion, adequate alternative railway passenger services are available;
(aa) require the Secretary of State or the Scottish Ministers to provide or secure the provision of a Welsh service where it appears to the Secretary of State or the Scottish Ministers (as the case may be) that the Secretary of State or the Scottish Ministers will not be receiving funds from the Welsh Ministers that are reasonably equivalent to those provided by the Welsh Ministers (whether directly to the previous franchisee or otherwise) in respect of the service provided by the previous franchisee;
(ab) require the Secretary of State to provide or secure the provision of a service within the area of a Passenger Transport Executive where it appears to him that he will not be receiving funds from the Executive that are reasonably equivalent to those provided by that Executive (whether directly to the previous franchisee or otherwise) in respect of the service provided by the previous franchisee;
(ac) require the Secretary of State to provide or secure the provision of a service that makes scheduled calls in Greater London where it appears to him that he will not be receiving funds from Transport for London that are reasonably equivalent to those that were provided by Transport for London (whether directly to the previous franchisee or otherwise) in respect of the service provided by the previous franchisee;
(b) preclude it from making a proposal to which section 24 of the Railways Act 2005 (proposals to discontinue franchised or secured services) applies in relation to any of the services, in which case its duty under this section to secure the provision of the services to which the proposal relates will (subject to subsections (7) and (8) of that section) terminate on the date for the discontinuance of services specified in the proposal; or
(c) preclude it from ceasing to provide or secure the provision of any of the services in any case falling within any of paragraphs (a) to (d) of subsection (3) of that section.
(3A) For the purposes of this section the Secretary of State, the Scottish Ministers and the Welsh Ministers shall each have power—
(a) to provide or operate network services, station services or light maintenance services; or
(b) to store goods or consign them from a place to which they have been carried by rail;
and the Scottish Ministers shall have power to provide Scotland-only services and cross-border services, and the Welsh Ministers shall have power to provide Wales-only services and Welsh components of Welsh services..
(3B) In this section “relevant franchising authority” means the person who was the appropriate franchising authority in relation to the franchise agreement that has been terminated or otherwise come to an end.
(3C) In this section—
“previous franchisee”, in relation to a railway passenger service, means the franchisee in relation to the franchise agreement under which the service was previously provided; ...
...
and references in this section to a Passenger Transport Executive and to a service within the area of a Passenger Transport Executive are to be construed as they are to be construed for the purposes of section 13 of that Act.
(1) This section applies where—
(a) the Secretary of State is the appropriate franchising authority in relation to a franchise agreement (“the existing agreement”), and
(b) the Secretary of State is satisfied that it will not be reasonably practicable to provide, or secure the provision of, the franchised services under section 30(1) when the existing agreement comes to an end.
(2) Where this section applies—
(a) the Secretary of State may enter into a new franchise agreement (“the new agreement”) for the provision of the services, or
(b) the franchise term in relation to the existing agreement may be extended.
(3) The Secretary of State may enter into the new agreement only if—
(a) the franchise term in relation to the new agreement is to begin immediately after the end of the franchise period in relation to the existing agreement, and
(b) the franchisee in relation to the new agreement is to be the same person as the franchisee in relation to the existing agreement.
(4) The Secretary of State may by regulations repeal this section and section 30B.
(1) A franchise agreement may be entered into under section 30A only by making a direct award of a public service contract in accordance with regulation 16 (emergency measures) of the 2023 Regulations.
(2) A franchise term may be extended under section 30A only by means of a formal agreement to extend such a contract in accordance with regulation 16 of the 2023 Regulations.
(3) For the purposes of this section the Secretary of State is to be treated as being entitled to take emergency measures under regulation 16 of the 2023 Regulations whether or not the requirements of paragraph (1) of that regulation are met.
(1) In sections 30 to 30B and this section—
(a) “direct award” and “public service contract” have the same meanings as in the 2023 Regulations (see regulation 2(1));
(b) “public sector company” means a company that is—
(i) wholly owned by the Secretary of State, the Welsh Ministers or the Scottish Ministers,
(ii) jointly owned by the Secretary of State and the Welsh Ministers, or
(iii) jointly owned by the Secretary of State and the Scottish Ministers;
(c) “the 2023 Regulations” means the Public Service Obligations in Transport Regulations 2023 (S.I. 2023/1369).
(2) Subsections (4) and (5) of section 58 of the Railways Act 2005 (meaning of “wholly owned” and “jointly owned”) apply for the purposes of this section as they apply for the purposes of that Act.
31 Leases granted in pursuance of franchise agreements: no security of tenure.
(1) In any case where—
(a) a franchise agreement makes provision for the franchisee, the franchise operator or a wholly owned subsidiary of the franchisee to enter into an agreement (“the contemplated agreement") with a person who has an interest in a network or a railway facility,
(b) the network or railway facility is to be used for or in connection with the provision of any of the franchised services, and
(c) the contemplated agreement creates a tenancy of any property which (whether in whole or in part) constitutes, or is comprised in, the network or railway facility,
neither Part II of the Landlord and Tenant Act 1954 (security of tenure of business premises) nor the Tenancy of Shops (Scotland) Act 1949 (security of tenure of shop premises in Scotland) shall apply to that tenancy.
(2) For the purposes of this section, a person shall be regarded as having an interest in a network or railway facility if he has an estate or interest in, or right over, any of the property which constitutes, or is comprised in, the network or railway facility.
(3) Any reference in this section to a network or a railway facility includes a reference to any part of a network or railway facility.
(4) In this section—
“agreement” includes a lease, underlease or sublease (as well as a tenancy agreement or an agreement for a lease, underlease or sublease);
“tenancy” has the same meaning as it has in Part II of the Landlord and Tenant Act 1954 or, in Scotland, as it has in the Tenancy of Shops (Scotland) Act 1949.
36 Miscellaneous amendments of the Transport Act 1968.
(1) In section 10 of the Transport Act 1968, in subsection (1) (which specifies the powers of Passenger Transport Executives) after paragraph (vi) there shall be inserted—
(via) with the approval of the Authority, to enter into and carry out agreements with any person who is the operator of, or who has an estate or interest in, or right over, a network, station or light maintenance depot or some part of a network, station or light maintenance depot, in connection with the building, replacement, redevelopment, refurbishment, repair, maintenance, operation or staffing of the network, station or light maintenance depot or any part thereof;
.
(2) After paragraph (viii) of that subsection there shall be inserted—
(viiia) to let locomotives and other rolling stock on hire to any person who is (within the meaning of Part I of the Railways Act 1993) the franchisee or the franchise operator under a franchise agreement to which the Executive is a party;
(viiib) to let locomotives and other rolling stock on hire to a person not falling within paragraph (viiia) above—
(a) for or in connection with the provision of railway passenger services within that area or within the permitted distance; or
(b) with the written consent of the Secretary of State, for or in connection with the provision of railway passenger services outside that area and beyond the permitted distance;
(viiic) with the approval of the Authority, to enter into and carry out agreements with the owner of any locomotive or other rolling stock concerning the persons to whom, or the terms on which, the locomotive or other rolling stock may be let on hire;
.
(3) In section 20(2) of that Act, in paragraph (a) (duty of Passenger Transport Executive to keep under review the railway passenger services provided by the Railways Board for meeting the needs of persons travelling between places in the Executive’s passenger transport area etc) for the words “by the Railways Board" there shall be substituted the words “ by passenger service operators (within the meaning of Part I of the Railways Act 1993) ”.
(4) After section 23 of that Act there shall be inserted—
Interpretation of certain provisions of this Part relating to railways.
23A (1) For the purposes of sections 10, 15 and 20 of this Act—
(a) “light maintenance depot”, “locomotive”, “network”, “railway passenger services”, “rolling stock” and “station” have the meaning given in section 83(1) of the Railways Act 1993; and
(b) “operator” has the meaning given in section 6(2) of that Act.
(2) For the purposes of sections 10(1)(vi), 15(1)(d) and 20(2)(b), (4) and (6) of this Act “wholly-owned subsidiary” has the meaning given by section 736 of the Companies Act 1985.
.
(5) In section 159(1) of that Act (general interpretation), in the definition of “subsidiary" and “wholly-owned subsidiary", for the words “subject to section 51(5)" there shall be substituted the words “ subject to sections 23A(2) and 51(5) ”.
50 Exclusion of liability for breach of statutory duty.
(1) The obligations of the Secretary of State and of the Welsh Ministers and of the Scottish Ministers, so far as imposed by or under any provision of this Part—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) to secure the provision of any services, or
(d) to secure the operation of any additional railway asset,
shall not give rise to any form of duty or liability enforceable by civil proceedings for breach of statutory duty.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .