Part 2Public sector funding authorities for railways

Assisting and securing the provision of services

12Transfer schemes at end of franchising agreements

I11

This section applies where a franchise agreement is or has been in force.

I12

The appropriate national authority may make a scheme for the transfer, at or after the end of the franchise period, of relevant franchise assets from the franchise company to a person specified in subsection (3), or to two or more of those persons.

I13

Those persons are—

a

the Secretary of State;

F4aa

the Welsh Ministers;

b

the Scottish Ministers;

c

a company which is wholly owned by the Secretary of StateF6, the Welsh Ministers or the Scottish Ministers;

d

a company which is jointly owned by the Secretary of State and the Scottish Ministers; F7...

F5da

a company which is jointly owned by the Secretary of State and the Welsh Ministers; and

e

a franchise company.

I14

Before making a scheme under this section, the appropriate national authority must consult every person to whom relevant franchise assets would be transferred under the proposed scheme.

I15

On the day on which a scheme made under this section comes into force—

a

the transferee or transferees must pay to the transferor, or

b

the transferor must pay to the transferee or transferees,

such sums as may be specified in, or determined in accordance with, the franchise agreement.

I16

Subsection (5) is subject to any other agreement between the transferor and the transferee or transferees.

I17

Schedule 2 (which contains supplemental provisions about transfer schemes) has effect in relation to schemes under this section.

I2I38

In this section—

  • “the appropriate national authority” means—

    1. za

      F1in relation to a franchise agreement the franchised services under which consist of Wales-only services, the Welsh Ministers;

    2. a

      F2...

    3. b

      in relation to a franchise agreement to which the Scottish Ministers are a party, the Scottish Ministers;

    4. c

      F3in relation to any other franchise agreement, the Secretary of State;

  • “franchise company” means a person who is, or is to be, the franchisee or the franchise operator under a franchise agreement;

  • “relevant franchise assets” means property, rights and liabilities which, immediately before the end of the franchise period which is ending or has ended, will be or were designated as franchise assets for the purposes of the agreement;

  • “transferee”, in relation to a scheme, means a person to whom property, rights or liabilities are transferred in accordance with the scheme; and

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