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(1)Section 34 of the [1993 c. 43.] Railways Act 1993 (Passenger Transport Authorities and Executives: franchising) is amended as follows.
(2)After subsection (8) insert—
“(8A)The Authority shall not do anything under subsection (8) above if or to the extent that to do it would prevent or seriously hinder the 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;
(b)from complying with any directions given to it by the Scottish Ministers under section 208 of that Act with which it must comply or from having regard to any guidance so given to which it must have regard; or
(c)from exercising any of its functions in a manner which is consistent with its financial framework.
(8B)The Authority need not do anything under subsection (8) above if or to the extent that to do it would have an adverse effect on the provision of services for the carriage of passengers or goods by railway (whether inside or outside the Passenger Transport Executive’s passenger transport area).
(8C)The Authority need not do anything under subsection (8) above if or to the extent that to do it would increase the amount of any expenditure of the Authority under agreements or other arrangements entered into (in accordance with a franchise agreement) with—
(a)the franchise operator;
(b)the franchisee; or
(c)any servant, agent or independent contractor of the franchise operator or franchisee.”
(3)In subsection (17) (disputes between Authority and Passenger Transport Executives: directions by Secretary of State), for “with respect to the dispute” substitute “with respect to the proposal or franchise agreement”.
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