Railways Act 2005

16 Relaxation of contractual restrictions on Transport for London

(1) Section 201 of the Greater London Authority Act 1999 (c. 29) (restriction on Transport for London entering into agreements that involve the holding of a licence under the 1993 Act) shall cease to have effect.

(2) Transport for London may not enter into an agreement—

(a) with a person who is a franchisee or franchise operator in relation to a franchise agreement, or

(b) with a person who is proposing to become such a franchisee or franchise operator,

unless the agreement is approved by the Secretary of State.

(3) An agreement that relates exclusively to the grant of permission by a facility owner for a person to use a railway facility of his does not require the approval of the Secretary of State under subsection (2) in any case in which Transport for London or a subsidiary of its is the facility owner or the person granted permission.

(4) The Secretary of State may—

(a) give a general approval for the purposes of subsection (2) in relation to a description of agreements, as well as specific approvals for particular agreements; and

(b) withdraw his approval in relation to any agreement at any time before the agreement is entered into.

(5) The agreements to which Transport for London may become a party with the approval of the Secretary of State include franchise agreements under which services are provided which are or include services for the carriage of passengers by railway between places in Greater London.

(6) In this section “subsidiary” has the meaning given to it by section 736 of the Companies Act 1985 (c. 6).