Railways Act 2005

Transfer of functions relating to franchise agreements

15 (1) Section 26 of the 1993 Act (invitation to tender for franchises) is amended as follows.

(2) In subsection (1), for the words from the beginning to “Authority” substitute “The appropriate franchising authority may select the person who is to be the franchisee in relation to a franchise agreement”.

(3) In subsections (2) and (3), for “Authority”, wherever occurring, substitute “appropriate franchising authority”.

(4) Subsection (4) shall cease to have effect.

(5) For subsections (5) to (10) (statement by the Secretary of State about his power to give directions) substitute—

“(4A) The Secretary of State and the Scottish Ministers shall each publish a statement of policy about how he proposes, or (as the case may be) they propose, to exercise the power under subsection (1) above.

(4B) The statement must in particular include the policy of the Secretary of State or the Scottish Ministers about—

(a) when his or their selection of the person to be a franchisee under a franchise agreement is likely to be from those submitting tenders in response to an invitation to do so;

(b) when it is likely such an invitation will not be issued; and

(c) the means by which he is, or they are, proposing that the selection will be made in cases where there is no such invitation.

(4C) In deciding whether to select the person who is to be the franchisee under a franchise agreement by means of an invitation to tender and whom so to select, the appropriate franchising authority must have regard to its statement of policy.

(4D) The Secretary of State or Scottish Ministers—

(a) may at any time alter or replace the statement of policy which he has made or (as the case may be) which they have made; and

(b) where that statement is altered or replaced, must publish the altered or replacement statement.

(4E) Before preparing, altering or replacing a statement of policy—

(a) the Secretary of State must consult the National Assembly for Wales and undertake such other consultation as he considers appropriate; and

(b) the Scottish Ministers must undertake such consultation as they consider appropriate.

(4F) Where a statement of policy is prepared, altered or replaced, a copy of it must be laid—

(a) in the case of a statement prepared, altered or replaced by the Secretary of State, before Parliament; and

(b) in the case of a statement prepared, altered or replaced by the Scottish Ministers, before the Scottish Parliament.”

(6) The fact that a statement of policy has not been published by any person under section 26(4A) of the 1993 Act does not affect the validity of any selection made as mentioned in section 26(1) of that Act.