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Railways Act 2005

Type Public General Act

Publication 2005-04-07

Last updated 2025-05-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(11A) A statutory instrument containing regulations made by the Scottish Ministers under this section is subject to annulment in pursuance of a resolution of the Scottish Parliament.

Code of practice for disabled rail users in Scotland

48

(1) The Scottish Ministers shall have power to prepare, and from time to time to revise, a code of practice for protecting the interests of users of relevant Scottish services who are disabled.

(2) The Scottish Ministers must publish a code prepared by them under this section, and every revision of it, in such manner as they consider appropriate.

(3) Before preparing or revising a code under this section the Scottish Ministers must consult the Disabled Persons Transport Advisory Committee established under section 125 of the Transport Act 1985 (c. 67).

(4) In this section “relevant Scottish service” means—

(a) a railway passenger service provided under a Scottish franchise agreement;

(b) a railway passenger service not falling within paragraph (a) which is a Scotland-only service or (without being such a service) is a service the provision of which is secured by the Scottish Ministers; or

(c) a station service provided in relation to a station in Scotland at which a service falling within paragraph (a) or (b) makes a scheduled call.

Railway administration orders for companies providing Scottish services

Functions of Scottish Ministers in relation to railway administration

49

(1) In subsection (6) of section 59 of the 1993 Act (interpretation of expressions used in connection with railway administration)—

(a) after “Part—” insert—

(za) “appropriate national authority”— (i) in relation to a Scottish protected railway company or a company subject to a railway administration order that was such a company when the order was made, means the Scottish Ministers; and (ii) in relation to any other protected railway company or company subject to a railway administration order, means the Secretary of State;

(b) after paragraph (b) insert—

(c) “Scottish protected railway company” means a protected railway company that is such a company only in respect of activities carried on by it as franchise operator in relation to a Scottish franchise agreement.

(2) In subsection (1) of section 60 (petition for railway administration order), for the words from the beginning to the end of paragraph (b) substitute—

(1) If, on an application relating to a protected railway company

(3) After that subsection insert—

(1A) An application under subsection (1) for the making of a railway administration order may be made— (a) in the case of an application on the ground specified in paragraph (a) of subsection (2), only by the appropriate national authority; and (b) in the case of an application on the ground specified in paragraph (b) of that subsection, only by the Secretary of State.

(4) In each of the following provisions of the 1993 Act, for “Secretary of State”, wherever occurring, substitute “ appropriate national authority ”, namely—

(a) section 61(1)(a)(i) and (2)(a) (notice and power to petition for railway administration order in the case of a winding-up petition);

(b) section 62(2)(a)(i), (3)(a), (5)(a)(i), (6)(a) and (7)(a) (notice and power to petition for railway administration order in the case of voluntary winding-up and other insolvency proceedings); and

(5) In paragraph 1 of Schedule 6 to the 1993 Act, before the “and” at the end of paragraph (a) insert—

(aa) as if references in those sections to the appropriate national authority were to be construed in accordance with section 59(6)(za) of this Act;

(6) In paragraphs 7(4), 8, and 10(5) of Schedule 6 to the 1993 Act, for “the Strategic Rail Authority” substitute “ the appropriate national authority ”.

(7) In paragraph 2 of Schedule 7 to the 1993 Act (making and modification of transfer schemes in connection with railway administration orders), for each of the following substitute “ the appropriate national authority ”, namely—

(a) in sub-paragraph (2), the words from “the Secretary of State” onwards;

(b) in sub-paragraphs (4) and (5), “the Secretary of State”, wherever occurring;

(c) in sub-paragraph (6), “the Secretary of State or Authority”, in each place, and “the Secretary of State or the Authority”; and

(d) in sub-paragraph (7), the words from “the Secretary of State or, in” to “the Authority” and “the Secretary of State or Authority”.

(8) In that paragraph—

(a) in sub-paragraph (3), for the words from “the Secretary of State”, where first occurring, to “or Authority” substitute “ “the appropriate national authority, it ”; and

(b) in sub-paragraph (6), for “his” substitute “ the appropriate national authority's ”.

(9) After sub-paragraph (8) of that paragraph insert—

(9) A statutory instrument containing an order under this paragraph by the Scottish Ministers is subject to annulment in pursuance of a resolution of the Scottish Parliament.

(10) Where a railway administration order is in force immediately before the commencement of this section in relation to a Scottish protected railway company, things done by or in relation to the Secretary of State for the purposes of or in connection with that order and by virtue of —

(a) any provision of sections 59 to 62 of the 1993 Act, or

(b) any provision of Schedule 6 or 7 to that Act, or of the Insolvency Act 1986 (c. 45) as modified by Schedule 6 to the 1993 Act,

are to have effect, so far as necessary for giving them continuing validity and effect, as if done by the Scottish Ministers.

(11) The power to amend Schedule 6 to the 1993 Act under section 249 of the Enterprise Act 2002 (c. 40) applies to the modifications of that Schedule by this Act, as it applies to that Schedule.

Assistance by Scottish Ministers for companies in railway administration

50

(1) In section 63 of the 1993 Act (financial assistance by the Secretary of State where railway administration orders made)—

(a) in subsection (1), after “a company” insert “ other than a Scottish protected railway company ”; and

(b) in subsection (2), for the words from “in relation to which” onwards substitute

where that company— (a) is a company in relation to which a railway administration order is in force at the time when the guarantee is given; and (b) is not a Scottish protected railway company.

(2) After section 64 of that Act insert—

(64A) (1) Where a railway administration order is for the time being in force in relation to a Scottish protected railway company, the Scottish Ministers may— (a) make grants or loans to the company of such sums as appear to them to be appropriate for the purpose of facilitating the achievement of the purposes of the order; or (b) agree to indemnify a relevant person in respect of— (i) liabilities incurred by that person in connection with the carrying out by the railway administrator of his functions under the order; and (ii) loss or damage incurred by that person in that connection. (2) The Scottish Ministers may guarantee— (a) the repayment of the principal of any sum borrowed by a Scottish protected railway company in relation to which a railway administration order is in force when the guarantee is given; (b) the payment of interest on a sum so borrowed; and (c) the discharge of any other financial obligation in relation to a sum so borrowed. (3) A grant, loan, indemnity or guarantee under this section may be made or given in whatever manner, and on whatever terms and subject to whatever conditions, the Scottish Ministers consider appropriate. (4) The terms on which a grant may be made under this section include, in particular, terms requiring the whole or a part of the grant to be repaid to the Scottish Ministers if there is a contravention of the other terms on which the grant is made. (5) The terms on which a loan may be made under this section include, in particular, terms requiring— (a) the loan to be repaid at such times and by such methods, and (b) interest to be paid on the loan at such rates and at such times, as the Scottish Ministers may from time to time direct. (6) The power of the Scottish Ministers under this section to agree to indemnify a relevant person— (a) is confined to a power to agree to indemnify that person in respect of liabilities, loss and damage incurred or sustained by him as a relevant person; but (b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons. (7) A person is a relevant person for the purposes of this section if he is— (a) the railway administrator; (b) an employee of the railway administrator; (c) a member or employee of a firm of which the railway administrator is a member; (d) a member or employee of a firm of which the railway administrator is an employee; (e) a member of a firm of which the railway administrator was an employee or member at a time when the order was in force; (f) a body corporate which is the employer of the railway administrator; or (g) an officer, employee or member of such a body corporate. (8) In this section— (a) references to the railway administrator, in relation to a railway administration order, are references to the person appointed to achieve the purposes of the order and, where two or more persons are so appointed, are to be construed as references to any one or more of them; and (b) the references to a firm of which a person was a member or employee at a particular time include references to a firm which holds itself out to be the successor of a firm of which he was a member or employee at that time. (9) If sums are paid out by the Scottish Ministers in respect of an indemnity or guarantee under this section, the company in relation to which the indemnity or guarantee was given must pay them— (a) such amounts in or towards the repayment to them of those sums as they may direct; and (b) interest, at such rates as they may direct, on amounts outstanding under this subsection. (10) Payments to the Scottish Ministers under subsection (9) must be made at such times and in such manner as they may determine. (11) Subsection (9) does not apply in the case of a sum paid by the Scottish Ministers for indemnifying a person in respect of a liability to the company in relation to which the railway administration order in question was made.

Duties of co-operation

ORR to assist and advise national authorities

51

(1) It shall be the duty of the Office of Rail and Road to comply with every reasonable requirement of the Secretary of State—

(a) to provide him with information or advice about a matter connected with a function or other activity of his in relation to railways or railway services;

(b) to provide him with information or advice about a matter relevant to the railway safety purposes; or

(c) otherwise to provide him with assistance in relation to a matter that is connected with such a function or activity or is relevant to those purposes.

(2) It shall be the duty of the Office of Rail and Road to comply with every reasonable requirement of the Scottish Ministers—

(a) to provide them with information or advice about a matter connected with a function or other activity of theirs in relation to railways or railway services; or

(b) otherwise to provide them with assistance in relation to a matter that is connected with such a function or activity.

(3) It shall be the duty of the Office of Rail and Road to comply with every reasonable requirement of the Welsh Ministers—

(a) to provide them with information or advice about a matter connected with a function or other activity of theirs in relation to railways or railway services; or

(b) otherwise to provide them with assistance in relation to a matter that is connected with such a function or activity.

(4) References in this section to the functions of a person in relation to railways or railway services include references, in particular, to all that person's functions under Part 1 of the 1993 Act, Part 4 of the 2000 Act or this Act.

(5) In this section “railway safety purposes” has the same meaning as in Schedule 3.

Duty of Passenger Transport Executives to advise Secretary of State

52

(1) It shall be the duty of a Passenger Transport Executive to comply with every requirement of the Secretary of State to provide him with advice about a matter connected with a function or other activity of his in relation to railways or railway services.

(2) A Passenger Transport Executive are not required to do anything under this section to the extent that it would involve an unreasonable administrative burden for the Executive.

(3) In determining the extent to which anything would involve an unreasonable administrative burden regard must be had (where relevant) to so much of whatever else the Passenger Transport Executive are required to do under this section as they have accepted does not involve such a burden.

(4) References in this section to the functions of the Secretary of State in relation to railways or railway services—

(a) include references, in particular, to all his functions under Part 1 of the 1993 Act, Part 4 of the 2000 Act or this Act; but

(b) do not include references to any functions of his so far as they are exercisable, or fall to be performed, for or in connection with the railway safety purposes (within the meaning of Schedule 3).

Part 6 — General and supplemental

General

Taxation

53

Schedule 10 (which makes taxation provision in relation to transfer schemes under sections 1(2) and 12) has effect.

Further amendments of the 1993 Act

54

(1) In sections 118 and 119 of the 1993 Act (powers in emergency and security powers etc.), at the end of subsection (11), in each case, insert “ with “railway” having its wider meaning for the purposes of this section. ”

(2) After section 119(5) of that Act insert—

(5A) The Secretary of State may give an instruction under this section for the protection of a relevant asset that is wholly in Scotland, or of persons or property on or in such an asset, only if— (a) the asset would be a relevant asset even if railway did not have its wider meaning for the purposes of this section; or (b) the instruction is given in the interests of national security. (5B) In subsection (5A) the reference to an instruction given in the interests of national security includes a reference to any instruction given for the purpose of ensuring that protection against terrorism is provided to the asset, persons or property in question.

(3) In section 119(11) of that Act, after the definition of “specified” insert—

“terrorism” has the same meaning as in the Terrorism Act 2000 (c. 11) (see section 1 of that Act);

(4) Schedule 11 (which makes further miscellaneous minor and consequential amendments of the 1993 Act) has effect.

Supplemental

Expenses etc.

55

(1) There shall be paid out of money provided by Parliament—

(a) any expenditure incurred by the Secretary of State for or in connection with the carrying out of any of his functions under this Act; and

(b) any increase attributable to this Act in the sums which are payable out of money so provided under any other Act.

(2) Sums received by the Secretary of State by virtue of any of the following provisions of this Act must be paid into the Consolidated Fund—

(a) section 6;

(b) section 10(6);

(d) paragraph 7 of Schedule 5.

Powers exercisable by statutory instrument

56

(1) Every power conferred by this Act on the Secretary of State, the Welsh Ministers or the Scottish Ministers to make an order or regulations is a power exercisable by statutory instrument.

(2) Where—

(a) this Act provides for an order or regulations to be subject to the negative resolution procedure, and

(b) a draft of the order or regulations is not required, in accordance with subsection (4) or any other enactment, to have been laid before Parliament and approved by a resolution of each House, or by a resolution of the House of Commons, or of the National Assembly for Wales or of the Scottish Parliament,

the statutory instrument containing the order or regulations shall be subject to annulment in pursuance of a relevant resolution.

(3) In subsection (2) “a relevant resolution”—

(a) in relation to an order or regulations made by the Secretary of State, means a resolution of either House of Parliament;

(b) in relation to an order or regulations made by the Scottish Ministers, means a resolution of the Scottish Parliament; ...

(c) in relation to an order made by the Secretary of State and the Scottish Ministers jointly, means a resolution of either House of Parliament or of the Scottish Parliament.

(d) in relation to an order or regulations made by the Welsh Ministers, means a resolution of the National Assembly for Wales; and

(e) in relation to an order made by the Secretary of State and the Welsh Ministers jointly, means a resolution of either House of Parliament or of the National Assembly for Wales.

(4) Where this Act specifies that a power to make provision of a particular description by order is subject to the affirmative resolution procedure, no order may be made containing provision of that description (with or without other provision) unless a draft of the order has been—

(a) laid before Parliament; and

(b) approved by a resolution of each House.

(5) Subject to subsection (6), every power under this Act of the Secretary of State, the Welsh Ministers or the Scottish Ministers to make an order or regulations includes power—

(a) to make different provision for different cases (including different provision in respect of different areas);

(b) to make provision subject to such exemptions and exceptions as the person exercising the power thinks fit; and

(6) Subsection (5) does not apply to the power of the Secretary of State to make an order under section 60(2).

Meaning of “Wales-only service” and “Welsh service”

57

(1) In this Act—

“Welsh component of a Welsh service” means a Welsh service (other than a Wales-only service) so far as it involves the carriage of passengers by railway in Wales, but not any part of the service excluded by subsection (1A);

“Wales-only service” means a railway passenger service which—starts and ends in Wales and does not make any other scheduled calls outside Wales; ......

“Welsh service” means a railway passenger service which starts in Wales, ends in Wales or otherwise makes at least one scheduled call in Wales.

(1A) For the purposes of the definition of “Welsh component of a Welsh service” in subsection (1) the following parts of a service are excluded—

(a) any part of the service after the last scheduled call wholly in Wales before each occasion when the service leaves Wales;

(b) any part of the service before the first scheduled call wholly in Wales after each occasion when the service enters Wales; and

(c) any part of the service between two scheduled calls not wholly in Wales where there is no intervening scheduled call wholly in Wales.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General interpretation

58

(1) In this Act—

“the 1993 Act” means the Railways Act 1993 (c. 43);

“the 2000 Act” means the Transport Act 2000 (c. 38);

“contravention” includes a failure to comply and cognate expressions are to be construed accordingly;

“Wales-only service”, “Welsh component of a Welsh service” and “Welsh service” have the meanings given by section 57.

(2) An expression which is given a meaning by any provision of the 1993 Act for the purpose either of that Act or of Part 1 of it has the same meaning in this Act as in that Act or (as the case may be) that Part.

(3) In this Act a reference to an Integrated Transport Authority or a Passenger Transport Authority, to a Passenger Transport Executive or to an integrated transport area or a passenger transport area is a reference to the authority, executive or area which is such an Authority, Executive or area for the purposes of Part 2 of the Transport Act 1968 (c. 73).

(4) For the purposes of this Act a company is wholly owned by a person at any time when it has no members other than one or more persons falling within the following paragraphs—

(a) that person;

(b) a company which is wholly owned by that person;

(5) For the purposes of this Act a company is jointly owned by two or more persons (“the relevant persons”) at any time when (without being wholly owned by a person) it has no members other than two or more persons falling within the following paragraphs—

(a) the relevant persons;

(b) a company which is jointly owned by two or more of the relevant persons or which is wholly owned by one of them;

Consequential amendments, transitional provisions and repeals

59

(1) Schedule 12 (which contains consequential and minor amendments) has effect.

(2) The Secretary of State may make a scheme making such modifications of the provisions of any licence or licence exemption granted under section 7(3) of the 1993 Act as appear to him to be necessary or expedient in consequence of any provision falling within subsection (3) by virtue of which—

(a) functions are transferred (with or without modifications) from one person to another; or

(b) functions corresponding (with or without modifications) to functions previously conferred on one person become functions of another.

(3) Those provisions are—

(a) section 1 and Schedule 1;

(b) section 2 and Schedule 3;

(d) section 48.

(4) A scheme under subsection (2) may include provision for things done by or in relation to a person who previously had a function to be treated as done by or in relation to the person on whom that function, or the corresponding function, is conferred by virtue of this Act.

(5) Where a scheme under subsection (2) makes a modification of the provisions of a licence or licence exemption, the Secretary of State must—

(a) in the case of a modification of the provisions of a licence, notify the licence holder; and

(b) in the case of a modification of the provisions of a licence exemption granted under section 7(3) of the 1993 Act, give such notice as he considers appropriate for bringing the modification to the attention of persons likely to be affected by it.

(5A) Subsections (2) to (5) have effect in relation to a railway undertaking licence and a holder of a railway undertaking licence as they have effect in relation to a licence and a licence holder respectively.

(6) The provisions in Part 1 of Schedule 13 (which include some that are spent) are repealed to the extent shown in the second column of that Part.

(7) Those repeals have effect subject to the savings in Part 2 of that Schedule.

Short title, commencement and extent

60

(1) This Act may be cited as the Railways Act 2005.

(2) This Act (apart from this section and section 56(1)) shall come into force on such day as the Secretary of State by order appoints; and different days may be appointed for different purposes.

(3) The Secretary of State may by order make such transitional provisions and savings in connection with the bringing into force of—

(a) section 21,

(b) Part 4 of this Act, or

as he thinks fit.

(4) An order containing provision made by virtue of subsection (3) is subject to the negative resolution procedure.

(5) The following provisions of this Act extend to England and Wales only—

(a) section 13;

(b) section 39; and

(6) This Act does not extend to Northern Ireland.

SCHEDULE 1

Part 1 — Transfer and abolition of functions

Transfer to ORR of consumer protection and other functions relating to licensing

1

(1) In section 7 of the 1993 Act—

(a) in subsections (1) and (3) (consultation with SRA about exemptions), omit “and the Authority”; and

(b) subsections (5A), (6A) and (8A) (consumer protection conditions) shall cease to have effect.

(2) In subsection (9) of that section, for “subsections (6) and (6A)” substitute “ subsection (6) ”.

2

Section 7A of the 1993 Act (consumer protection conditions) shall cease to have effect.

3

(1) In section 8 of the 1993 Act (licences), in subsection (1)—

(a) in paragraph (a), omit “and the Authority”;

(b) in paragraph (b), omit “given after consultation with the Authority”.

(2) In subsection (2) of that section, paragraph (a) shall cease to have effect.

(3) In subsection (6) of that section (consent required for surrender of licence), for “and the Authority consent” substitute “ consents ”.

(4) In subsection (7) of that section—

(a) in paragraph (a), omit “, to the Authority”; and

(b) in paragraph (b), for “Authority” substitute “ Secretary of State ”.

(5) In subsection (8) of that section, omit “and the Authority”.

4

In section 11 of the 1993 Act (assignment of licences)—

(a) in subsection (2)(b), omit “and the Authority”;

(b) in subsection (4), omit “or persons”.

5

(1) In section 12 of the 1993 Act, subsections (1A) to (1C) (modification of consumer protection conditions) shall cease to have effect.

(2) In subsection (2) of that section, for “of any conditions of a licence which do not relate to consumer protection” substitute “ under this section ”.

6

In section 13 of the 1993 Act (modification references to Competition Commission)—

(a) for “the appropriate authority”, wherever occurring, substitute “ the Office of Rail Regulation ”; and

(b) subsections (1A) to (1C) shall cease to have effect.

7

In section 13A of the 1993 Act (time limits under section 13), for “the appropriate authority”, wherever occurring, substitute “ the Office of Rail Regulation ”.

8

In section 14 of the 1993 Act (reports on modification references)—

(a) for “the appropriate authority”, wherever occurring, substitute “ the Office of Rail Regulation ”; and

(b) subsection (5A) shall cease to have effect.

9

In section 15 of the 1993 Act (modification following report)—

(a) subsections (1B) and (3A) (reports to the SRA) shall cease to have effect;

(b) in subsections (2), (4A), (4B), (4C) and (4D), omit “or Authority”, wherever occurring; and

10

(1) This paragraph applies to things done under or for the purposes of any provision of sections 13 to 15C of the 1993 Act (modification of licences) so far as they were done before the commencement of this paragraph by or in relation to the Strategic Rail Authority as the appropriate authority.

(2) In relation to times after the commencement of this paragraph, those things shall have effect, so far as necessary for giving them continuing validity or effect, as if done by or in relation to the Office of Rail and Road.

Transfers relating to the provision, improvement or development of railway facilities

11

(1) In sections 16A, 16C(3), 16D, 16E(2)(a), 16F(3)(a) and 16G of the 1993 Act (directions by Office of Rail Regulation, on applications made by or with the consent of the SRA, to provide, improve or develop railway facilities), for “Authority”, wherever occurring, substitute “ appropriate facilities authority ”.

(2) In section 16A of that Act, in subsection (3), for “Authority's consent” substitute “ consent of the appropriate facilities authority ”.

(3) In that section, after that subsection insert—

(3A) In this section and sections 16B to 16G below `the appropriate facilities authority'— (a) in relation to facilities in Scotland, means the Scottish Ministers; and (b) in relation to any other facilities, means the Secretary of State.

(4) In section 16B(1) and (4) of that Act (exemptions of facilities from section 16A), for “Secretary of State”, in each place, substitute, “ appropriate facilities authority ”.

(5) In section 16B of that Act, after subsection (6) insert—

(7) A statutory instrument containing an order made under this section by the Scottish Ministers shall be subject to annulment in pursuance of a resolution of the Scottish Parliament.

(6) An exemption granted under subsection (1) of section 16B of that Act before the commencement of this paragraph—

(a) which is in force at the time of the commencement of this paragraph or is to come into force after that time, and

(b) is contained in an order the power to make which is exercisable after that time by the Scottish Ministers,

is to have effect after that time as if contained in an order made by those Ministers which is not subject to subsection (7) of that section.

Transfer of functions relating to access agreements

12

(1) In sections 17 to 19 of the 1993 Act (access agreements) except in sections 17(4) and 19(7), for “the Authority”, wherever occurring, substitute “ the Secretary of State ”.

(2) In each of sections 17(4) and 19(7) (references to operating on behalf of SRA)—

(a) for “Authority”, where first occurring, substitute “ Secretary of State ”;

(b) for “Authority”, in the second place, substitute “ Secretary of State or the Scottish Ministers ”; and

(3) In section 18(6A)(b) of that Act, for “its” substitute “ his ”.

Transfer of functions relating to franchise agreements

13

(1) In section 23 of the 1993 Act (passenger services to be subject to franchise agreements), in subsections (1) and (2), for “Authority”, wherever occurring, substitute “ appropriate designating authority ”.

(2) After subsection (2) of that section insert—

(2ZA) Where the Scottish Ministers designate Scotland-only services, they may also designate cross-border services which— (a) they consider should be provided under the same franchise agreement as 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.

(3) Subsection (2B) of that section (publication of designations etc.) shall cease to have effect.

(4) In subsection (3) of that section—

(a) before the definition of “franchise agreement” insert—

“the appropriate designating authority”— (a) in relation to Scotland-only services, means the Scottish Ministers; and (b) in relation to all other services, means the Secretary of State; “the appropriate franchising authority”— (a) in relation to a Scottish franchise agreement, means the Scottish Ministers; and (b) in relation to any other franchise agreement, means the Secretary of State;

(b) in the definition of “franchise agreement”, for “with the Authority” substitute “ with the Secretary of State, with the Scottish Ministers or with the Secretary of State and the National Assembly for Wales jointly, ”.

(5) Every designation made by the Strategic Rail Authority under section 23 of the 1993 Act which is in force immediately before the commencement of sub-paragraph (1) shall have effect after the commencement of that sub-paragraph as a designation in accordance with that section—

(a) in the case of services that at that time were being provided under a franchise agreement the franchised services under which consist of or include Scotland-only services, by the Scottish Ministers; and

(b) in any other case, by the Secretary of State.

14

(1) Section 24 of the 1993 Act (franchise exemptions granted by the Secretary of State) is amended as follows.

(2) In subsections (1) to (5) and (9), for “Secretary of State”, wherever occurring, substitute “ appropriate designating authority ”.

(3) In subsection (3)(a) and (b), for “he” in each place substitute “ the appropriate designating authority ”.

(4) After subsection (3) insert—

(3A) Before granting a franchise exemption in respect of a cross-border service, the Secretary of State must consult the Scottish Ministers.

(5) In subsection (4), for “he”, in both places, substitute “ it ”.

(6) In subsection (6), for “is not complied with, the Secretary of State” substitute “ granted by the appropriate designating authority is not complied with, it ”.

(7) In subsection (9), for “him”, in each place, substitute “ it ”.

(8) After subsection (12) insert—

(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.

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.

16

For sections 26A, 26B and 26C of the 1993 Act (directions of the Secretary of State where no tenders or tenders appear unsatisfactory) substitute—

(26ZA) (1) This section applies in the case of an invitation to tender under section 26 for the provision of services if— (a) the appropriate franchising authority receives no tender in response to the invitation; or (b) it receives a tender but considers that the services would be provided more economically and efficiently if they were provided otherwise than under a franchise agreement entered into in response to the tender. (2) The appropriate franchising authority may — (a) issue a new invitation to tender under section 26 for the provision of the services; (b) decide to secure the provision of the services under a franchise agreement with a person who did not submit a tender; or (c) decide not to seek to secure the provision of the services under a franchise agreement. (3) Nothing in this section prevents the appropriate franchising authority, where it has decided not to seek to secure the provision of services under a franchise agreement, from subsequently making a decision to issue a new invitation to tender for the provision of those services.

17

(1) In section 27 of the 1993 Act (transfer of franchise assets or shares), for “Authority”, wherever occurring, substitute “ appropriate franchising authority ”.

(2) In subsection (8) and (9) of that section, for “Schedule 21 to the Transport Act 2000” substitute “ section 12 of the Railways Act 2005 ”.

18

(1) In section 28 of the 1993 Act (fares and approved discount fare schemes), in subsection (2), for “Authority”, substitute “ appropriate franchising authority ”.

(2) In subsection (4)—

(a) after “regarded” insert “ , in relation to a franchise agreement, ”; and

(b) for “Authority” substitute “ appropriate franchising authority ”.

(3) Discount fare schemes which immediately before the commencement of this paragraph are approved for the purposes of section 28 of the 1993 Act are to be treated after the commencement of this paragraph as approved for the purposes of that section by the appropriate franchising authority.

19

In section 29 of the 1993 Act (other terms and conditions of franchise agreements), for “Authority”, wherever occurring, substitute “ appropriate franchising authority ”.

Transfer of functions as operator of last resort

20

(1) In section 30 of the 1993 Act (operator of last resort to provide or secure provision of service where no franchise agreement), for “Authority”, wherever occurring, substitute “ relevant franchising authority ”.

(2) Subsection (1)(a) shall cease to have effect.

(3) In subsection (2), for “begin (or again begin) to be provided” substitute “ begin to be provided again ”.

(4) After subsection (3) of that section, insert—

(3A) For the purposes of this section the Secretary of State and the Scottish Ministersshall 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. (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.

(5) Where immediately before the commencement of this paragraph any service is being provided or secured by the Strategic Rail Authority by virtue of section 30 of the 1993 Act, that section is to have effect after the commencement of this paragraph as if—

(a) the condition in subsection (1)(b) of that section were satisfied; and

(b) the relevant franchising authority were—

(i) except where sub-paragraph (ii) applies, the Secretary of State; and

(ii) where the franchised services under the franchise agreement in accordance with which the services in question were last provided included Scotland-only services, the Scottish Ministers.

Transfer etc. of functions relating to enforcement

21

(1) Section 55 of the 1993 Act (orders for securing compliance) is amended as follows.

(2) In subsections (1), (2) and (4), for “(5B)”, in each place, substitute “ (5C) ”.

(3) In subsection (5), omit “or, as the case may be, section 207 of the Transport Act 2000”.

(4) In subsection (5ZA)—

(a) for “The Authority shall not” substitute “ Neither the Secretary of State nor the Scottish Ministers shall ”;

(b) in paragraph (a), for “it has” and “the Authority” substitute, respectively “ the Secretary of State has or (as the case may be) those Ministers have ” and “him or them”; and

(c) in paragraph (c), for “the Authority” substitute “ the Secretary of State or (as the case may be) the Scottish Ministers ”.

(5) After subsection (5B) insert—

(5C) Neither the Secretary of State nor the Scottish Ministers shall be required, in respect of any contravention or apprehended contravention of the terms of a franchise agreement, to make a final order, or to make or to confirm a provisional order, if he considers or (as the case may be) they consider— (a) that the contravention or apprehended contravention is trivial; and (b) that it would be inappropriate, for that reason, to make or to confirm the order. (5D) The appropriate authority must comply with subsection (6)— (a) in a case where the appropriate authority is the Secretary of State or the Scottish Ministers, if that authority decides not to make a final order, or not to make or to confirm a provisional order, because of provision contained in subsection (5) or (5ZA) above; or (b) in the case of the Office of Rail Regulation, if it decides not to make a final order, or not to make or to confirm a provisional order, because of provision contained in subsection (5), (5A) or (5B) above.

(6) In subsection (6) (notice of decisions), for the words from the beginning to the end of paragraph (a) substitute—

(6) Where the appropriate authority must comply with this subsection, it must— (a) serve notice of its decision on the relevant operator; and

(7) In subsection (7A), for “to the Authority in the event of any specified contravention of the order such” substitute

in the event of a specified contravention of the order— (a) in the case of an order made by the Scottish Ministers, to them, and (b) in any other case, to the Secretary of State, such

(8) In subsection (10)—

(a) in paragraph (a) of the definition of “the appropriate authority”, omit “apart from a condition which relates to consumer protection,”;

(b) for paragraph (b) substitute—

(aa) in relation to any relevant condition or requirement in the case of— (i) a franchisee under a Scottish franchise agreement, (ii) a franchise operator in relation to such an agreement, or (iii) a person under Scottish closure restrictions, the Scottish Ministers; and (b) in relation to any relevant condition or requirement in the case of— (i) a franchisee not falling within paragraph (aa)(i), (ii) a franchise operator not falling within paragraph (aa)(ii), or (iii) a person under closure restrictions that are not Scottish closure restrictions, the Secretary of State;

22

In section 56(2A) of the 1993 Act (procedural requirements for section 55 orders), for the words from “Authority”, where first occurring, to the end of the subsection substitute “ Secretary of State and on the Scottish Ministers. ”

23

(1) Section 57A of the 1993 Act (penalties) is amended as follows.

(2) In subsection (2), for “to the Authority” substitute—

(a) in the case of a penalty imposed by the Scottish Ministers, to them; and (b) in any other case, to the Secretary of State

(3) In subsection (5)—

(a) for “The Authority shall not” substitute “ Neither the Secretary of State nor the Scottish Ministers shall ”;

(b) in paragraph (a), for “it has” and “the Authority” substitute, respectively, “ the Secretary of State has or (as the case may be) those Ministers have ” and “ him or them ”; and

(c) in paragraph (c), for “the Authority” substitute “ the Secretary of State or (as the case may be) the Scottish Ministers ”.

24

(1) In section 57B of the 1993 Act—

(a) for “Authority”, wherever occurring, substitute “ Secretary of State, the Scottish Ministers ”; and

(b) in subsections (3) and (4), after “statement of” insert “ his, their or ”.

(2) The fact that a statement of policy has not been published by the Secretary of State, by the Scottish Ministers or by the Office of Rail and Road under section 57B of the 1993 Act does not affect—

(a) the validity of any decision to impose a penalty under section 57A;

(b) any determination of the amount of any such penalty;

(d) any determination of the amount of the sum payable in accordance with such an order.

25

In section 57C(3) of the 1993 Act (service of penalty notices), for the words from “Authority”, where first occurring, to the end of the subsection substitute “ Secretary of State and on the Scottish Ministers. ”

26

(1) This paragraph applies to things done under or for the purposes of any provision of sections 55 to 58 of the 1993 Act (enforcement) so far as they were done before the commencement of this paragraph by or in relation to the Strategic Rail Authority as the appropriate authority.

(2) In relation to times after the commencement of this paragraph, those things shall have effect, so far as necessary for giving them continuing validity or effect—

(a) so far as they are things done by or in relation to the Strategic Rail Authority as the appropriate authority in relation to a condition relating to consumer protection, as if they were done by or in relation to the Secretary of State or the Scottish Ministers, as the case may require; and

(b) in any other case, as if they were done by or in relation to the Office of Rail and Road.

Abolition of functions relating to railway administration orders

27

(1) The following provisions of the 1993 Act (which relate to applications by the SRA for railway administration orders and to notices to the SRA about insolvency proceedings against protected railway companies) shall cease to have effect—

(a) section 61(1)(a)(ii) and (2)(b); and

(b) section 62(2)(a)(ii), (3)(b), (5)(a)(ii), (6)(b) and (7)(b).

(2) Where a railway administration order is in force immediately before the commencement of this paragraph in relation to a company, things done by or in relation to the Strategic Rail Authority for the purposes of or in connection with that order and by virtue of —

(a) any provision of sections 59 to 62 of the 1993 Act, or

(b) any provision of Schedule 6 or 7 to that Act, or of the Insolvency Act 1986 (c. 45) as modified by Schedule 6 to the 1993 Act,

are to have effect, so far as necessary for giving them continuing validity and effect, as if done by the appropriate national authority (within the meaning of Part 1 of the 1993 Act).

Abolition of duty to investigate contravention of consumer protection conditions

28

Section 71A of the 1993 Act (duty to investigate contraventions of consumer protection conditions) shall cease to have effect.

Transfer of function of maintaining code of practice for protection of disabled rail users

29

(1) In section 71B of the 1993 Act (code of practice for protection of disabled rail users), for “Authority”, in each place, substitute “ Secretary of State ”.

(2) The code of practice under section 71B of the 1993 Act that is in force immediately before the commencement of this paragraph is to have effect after the commencement of this paragraph as if prepared and published by the Secretary of State.

(3) The Strategic Rail Authority must provide the Secretary of State with particulars of any consultation under section 71B(2) of the 1993 Act which was undertaken before the commencement of this paragraph by that Authority in relation to future revisions of the code; and that consultation is to be treated for the purposes of any revision after the commencement of this paragraph as having been undertaken by the Secretary of State.

Transfer of functions relating to maintenance of register

30

(1) In section 73 of the 1993 Act (register maintained by the SRA), for “Authority”, wherever occurring, substitute “ Secretary of State ”.

(2) In subsection (1) of that section, for “it” substitute “ he ”.

(3) In subsection (2) of that section—

(a) for the words from “subsection (3)” to “subsection (4)” substitute “ subsections (3) and (4) ”;

(b) after “in the register” insert “ (except so far as they are required to be entered in the register maintained under section 73A below) ”;

(d) after paragraph (g) insert—

(ga) every designation under section 23 and every variation or revocation of such a designation;

(4) For subsection (3) of that section substitute—

(3) The Secretary of State may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as he considers it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in the Secretary of State's opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Secretary of State's opinion, seriously and prejudicially affect the interests of that body.

(5) In subsection (4) of that section, for the words from “or” to “Authority” substitute “ he may decide ”.

(6) Subsections (5) and (6) of that section shall cease to have effect.

(7) In subsection (7) of that section—

(a) after “by”, where first occurring, insert “ the Scottish Ministers or ”; and

(b) for “the Office of Rail Regulation may” substitute “ the Scottish Ministers and the Office of Rail Regulation may each ”.

31

After that section insert—

(73A) (1) The Scottish Ministers must maintain a register. (2) The register must be kept in such form and at such premises as the Scottish Ministers determine. (3) Subject to subsections (4) and (5) below, the Scottish Ministers must cause the provisions of each of the following to be entered in the register— (a) every designation made by them under section 23 of this Act, and every variation or revocation of such a designation; (b) every franchise exemption granted by them; (c) every franchise agreement to which they are a party; (d) every amendment of such a franchise agreement, other than those that are unlikely to have a material effect on the provision of services under the agreement or on the sums payable under it; (e) every determination made by them under section 34 of the Railways Act 2005 that a closure is a minor modification or that closures of a particular description are minor modifications; (f) every revocation of a determination made by them under that section in relation to a description of closures; (g) every condition agreed to under subsection (5) of that section in connection with a determination made by them; (h) every final or provisional order made by them; (i) every revocation by them of such an order; (j) every notice given by them under section 55(6) of this Act of a decision not to make such an order; (k) every penalty imposed by them under section 57A of this Act; (l) every statement of policy published by them under section 57B of this Act. (4) The Scottish Ministers may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as they consider it appropriate to exclude for the purpose of maintaining the confidentiality of— (a) matters relating to the affairs of an individual the publication of which would or might, in the Scottish Ministers' opinion, seriously and prejudicially affect the interests of that individual; and (b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Scottish Ministers' opinion, seriously and prejudicially affect the interests of that body. (5) If it appears to the Scottish Ministers that the entry of any provision in the register would be against the public interest, they may decide not to enter it in the register. (6) The contents of the register must be available for inspection, at any time and free of charge, by the Secretary of State or the Office of Rail Regulation. (7) The Secretary of State and the Office of Rail Regulation may each require the Scottish Ministers to supply him or (as the case may be) it free of charge with a certified copy of a part of the register or with a certified extract from it. (8) The references in subsection (7) to a certified copy or a certified extract are references to a copy or extract that has been certified by the Scottish Ministers to be a true copy or extract. (9) In subsection (3)(d) “amendment”, in relation to a franchise agreement, means any amendment however described, including variations (whether or not effected in accordance with the terms of the agreement or by a modification of it) of the property, rights and liabilities which from time to time constitute the franchise assets.

Transfer of functions relating to the Rail Passengers' Council

32

(1) In section 76 of the 1993 Act (general duties of Passengers’ Council), for “Authority”, wherever occurring (except in subsection (6)(a)), substitute “ Secretary of State ”.

(2) In subsection (4) of that section, for “service” substitute “ secured service (within the meaning of Part 4 of the Railways Act 2005) which is ”.

(3) In subsection (5) of that section, in the words after paragraph (b)—

(a) for “its” substitute “ his ”; and

(b) for the word “it”, in the last place where it occurs, substitute “ he ”.

(4) In subsection (6)(a) of that section, omit “and the Authority”.

(5) Subsection (8) of that section shall cease to have effect.

Transfer of power to require information from licence holders

33

(1) In section 80 of the 1993 Act (duty to provide information to the SRA on request), for “Authority”, wherever occurring, substitute “ Secretary of State, the Scottish Ministers or the Office of Rail Regulation ”.

(2) In subsection (1) of that section—

(a) for “it”, in each place, substitute “ he, they or it ”; and

(b) for “of its functions” substitute “ functions of the Secretary of State, the Scottish Ministers or (as the case may be) that Office ”.

Abolition of functions relating to penalty fares

34

In section 130 of the 1993 Act—

(a) for paragraph (p) of subsection (2) (power to allow Secretary of State or SRA to prohibit the charging of penalty fares by person suspected of contraventions) substitute—

(p) the imposition by the Secretary of State or the Scottish Ministers of prohibitions on the charging of penalty fares by prescribed persons and in prescribed circumstances.

;

(b) subsections (5), (6) and (10) (functions conferred on the SRA by penalty fare regulations) shall cease to have effect.

Transfer of functions relating to concessionary travel

35

(1) Section 135 of the 1993 Act (concessionary travel) is amended as follows.

(2) In subsections (2) and (3), for “Authority may” substitute “ Secretary of State and the Scottish Ministers may each ”.

(3) In subsection (6), for “The Authority may perform any of its functions” substitute “ The Secretary of State and the Scottish Ministers may exercise powers and perform duties conferred or imposed on him or them ”.

(4) In subsection (7), for “Authority undertakes” substitute “ Secretary of State undertakes, or the Scottish Ministers undertake, ”.

Abolition of certain functions under the 2000 Act

36

The following provisions of the 2000 Act shall cease to have effect—

(a) section 213 (powers to provide railway services);

(b) section 214 (substitute bus and taxi services); and

Part 2 — Definitions for purposes of transfers to Scottish Ministers

37

(1) Section 83(1) of the 1993 Act (expressions defined for the purposes of that Act, Part 4 of the 2000 Act and this Act) is amended as follows.

(2) After the definition of “closure consent” insert—

“cross-border service” means a railway passenger service starting either in England and Wales or in Scotland and ending, or otherwise making at least one scheduled call, in the other;

(3) After the definition of “rolling stock” insert—

“scheduled call”, in relation to a service or journey, means a scheduled stop at a station for the purpose of allowing passengers to join or leave the service or train (including the stops where the service or journey starts and ends); “Scotland-only service” means a railway passenger service which starts and ends in Scotland and is not a cross-border service; “Scottish franchise agreement” means a franchise agreement the franchised services under which— (a) consist of or include Scotland-only services; and (b) so far as they include other services, include only cross-border services designated by the Scottish Ministers;

SCHEDULE 2

Application and commencement of scheme

1

(1) A scheme may set out the property, rights and liabilities to be transferred in one or more of the following ways—

(a) by specifying or describing them in particular;

(b) by identifying them generally by reference to an undertaking from which they are to be transferred; or

(2) A scheme comes into force on the date appointed by the scheme.

Property, rights and liabilities that may be transferred

2

(1) The property, rights and liabilities that may be transferred by a scheme include—

(a) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the transferor;

(b) property acquired in the period after the making of the scheme and before it comes into force and rights and liabilities arising in that period;

(c) rights and liabilities arising after the scheme comes into force in respect of matters occurring before it comes into force;

(d) rights and liabilities under an enactment, EU instrument or subordinate legislation.

(2) The transfers to which effect may be given by a scheme include transfers that are to take effect in accordance with the scheme as if there were—

(a) no such requirement to obtain a person's consent or concurrence,

(b) no such liability in respect of a contravention of any other requirement, and

as there would be, in the case of a transaction apart from this Act, by reason of a provision falling within sub-paragraph (3).

(3) A provision falls within this sub-paragraph to the extent that it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled or subject to anything to which the transfer relates.

(4) Sub-paragraph (5) applies where (apart from that sub-paragraph) a person would be entitled, in consequence of anything done or likely to be done by or under this Act in connection with a scheme under section 1(2)—

(a) to terminate, modify, acquire or claim an interest or right to which the transferor is entitled or subject; or

(b) to treat such an interest or right as modified or terminated.

(5) That entitlement shall be enforceable in relation to the interest or right—

(a) in consequence of what is done or likely to be done by or under this Act, and

(b) in corresponding circumstances arising after the transfer,

to the extent only that the scheme provides for it to be so enforceable.

(6) Sub-paragraphs (2) to (5) have effect where shares in a subsidiary of the transferor are or are to be transferred—

(a) as if the reference in sub-paragraph (3) to the terms on which the transferor is entitled or subject to anything to which the transfer relates included a reference to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect; and

(b) as if the reference in sub-paragraph (4) to the transferor included a reference to the subsidiary.

Dividing and modifying transferor’s property, rights and liabilities

3

(1) A scheme may contain provision—

(a) for the creation, in favour of a transferor or transferee, of an interest or right in or in relation to property to be transferred in accordance with the scheme;

(b) for giving effect to a transfer to a person by the creation, in favour of that person, of an interest or right in or in relation to property to be retained by a transferor;

(c) for the creation of new rights and liabilities (including rights of indemnity and duties to indemnify) as between different transferees and as between a transferee and a transferor.

(2) A scheme may contain provision for the creation of rights and liabilities for the purpose of converting arrangements between different parts of a transferor's undertaking which exist immediately before the coming into force of the scheme into a contract between different transferees, or between a transferee and a transferor.

(3) A scheme may contain provision—

(a) for rights and liabilities to be transferred so as to be enforceable by or against more than one transferee, or by or against both the transferee and the transferor; and

(b) for rights and liabilities enforceable against more than one person in accordance with provision falling within paragraph (a) to be enforceable in different or modified respects by or against each or any of them.

(4) A scheme may contain provision for interests, rights or liabilities of third parties in relation to anything to which the scheme relates to be modified in the manner set out in the scheme.

(5) In sub-paragraph (4) “third party”, in relation to a scheme, means a person other than the transferor and the transferee.

(6) Paragraph 2(2) and (3) applies to the creation of interests and rights in accordance with a scheme as it applies to the transfer of interests and rights.

Obligation to effect transfers etc. under a scheme

4

(1) A scheme may contain provision for imposing on a transferee or a transferor an obligation—

(a) to enter into such agreements with another person on whom a corresponding obligation is, or could be or has been, imposed by virtue of this paragraph (whether in the same or a different scheme), or

(b) to execute such instruments in favour of any such person,

as may be specified or described in the scheme.

(2) An obligation imposed on a person by virtue of sub-paragraph (1) shall be enforceable by the relevant person in civil proceedings—

(a) for an injunction;

(b) for specific performance of a statutory duty under section 45 of the Court of Session Act 1988 (c. 36); or

(3) The relevant person for the purposes of sub-paragraph (2) is the person with, or in favour of whom, the agreement or instrument is to be entered into or executed.

Effect of scheme

5

(1) Where a scheme provides for the transfer of property, rights or liabilities, or for the creation of interests, rights or liabilities—

(a) this Act shall have the effect that, at the time when the scheme comes into force, the property or interests, rights or liabilities shall vest, without further assurance, in the transferee; and

(b) the provisions of that scheme in relation to that property or those interests, rights or liabilities shall have effect from that time.

(2) Sub-paragraph (1) is subject to so much of a scheme as provides for—

(a) the transfer of property, rights or liabilities which are to be transferred in accordance with the scheme, or

(b) the creation of interests, rights and liabilities which are to be created in accordance with the scheme,

to be effected by or under an agreement or instrument entered into or executed in pursuance of an obligation imposed by virtue of paragraph 4(1).

(3) In its application to Scotland, sub-paragraph (1) has effect with the omission of the words “without further assurance”.

Powers and duties under statutory provisions

6

(1) A scheme may make provision for some or all of the powers and duties to which this paragraph applies—

(a) to be transferred to a transferee;

(b) to become powers and duties that are exercisable, or must be performed, concurrently by two or more transferees; or

(c) to become powers and duties that are exercisable, or must be performed, concurrently by a transferor and a transferee.

(2) The powers and duties to which this paragraph applies are the powers and duties conferred or imposed upon the transferor by or under a relevant enactment so far as they relate to—

(a) property to be transferred in accordance with the scheme;

(b) the carrying out of works designed to be used in connection with such property; or

(3) In this paragraph “relevant enactment” means any enactment other than—

(a) the 1993 Act;

(b) Part 4 of the 2000 Act; or

(4) This paragraph does not require a restrictive construction to be given to what may be transferred by virtue of paragraph 2(1)(d).

Supplementary provisions of schemes

7

(1) A scheme may—

(a) make such incidental, supplemental, consequential and transitional provision in connection with the transfers to be made in accordance with the scheme as the person making the scheme thinks fit;

(b) make different provision for different cases.

(2) In particular, a scheme may make provision, in relation to transfers in accordance with the scheme—

(a) for the transferee to be treated as the same person in law as the transferor;

(b) for agreements made, transactions effected or other things done by or in relation to the transferor to be treated, so far as may be necessary for the purposes of or in connection with the transfers, as made, effected or done by or in relation to the transferee;

(c) for references in an agreement, instrument or other document to the transferor, or to an employee or office holder of the transferor, to have effect, so far as may be necessary for the purposes of or in connection with a transfer, with such modifications as are specified in the scheme; and

(d) for proceedings commenced by or against the transferor to be continued by or against the transferee.

(3) Sub-paragraph (2)(c) does not apply to references in an enactment or in subordinate legislation.

(4) In this paragraph references to a transfer in accordance with a scheme include references to the creation of an interest, right or liability in accordance with a scheme.

Modification of scheme by agreement

8

(1) Where the transferor and transferee under a scheme that has come into force so agree, the scheme shall be treated for all purposes as having come into force with such modifications as may be agreed.

(2) An agreement under this paragraph which relates to rights and liabilities under a contract of employment may be entered into only if the employee is a party to the agreement.

(3) An agreement under this paragraph that adversely affects the property or rights of a person other than the transferor, the transferee or such an employee may be entered into only if that person is a party to the agreement.

(4) The provision that may be included in an agreement under this paragraph includes—

(a) any provision that could have been contained in the scheme; and

(b) incidental, supplemental, consequential and transitional provision in connection with any such provision.

Continuity of employment etc.

9

(1) Where in accordance with a scheme a person employed by a transferor becomes an employee of a transferee—

(a) he is not to be regarded for the purposes of Part 11 of the Employment Rights Act 1996 (c. 18) as having been dismissed by virtue of the transfer;

(b) his period of employment with the transferor counts for the purposes of that Act as a period of employment with the transferee;

(c) the change of employment does not break the continuity of the period of employment either for the purposes of that Act or for the purposes of Schedule 11 to the 1993 Act (pensions); and

(d) in a case in which the transferee is not engaged in the railway industry, that person's period of employment with the transferee is to be disregarded for the purpose of determining whether the termination conditions under paragraph 8 of Schedule 11 to the 1993 Act are fulfilled in his case.

(2) References in this paragraph to becoming an employee of the transferee and to employment with the transferee include references, respectively, to becoming and to being employed in the civil service of the state.

Compensation for third parties

10

(1) Where—

(a) an entitlement of a third party to an interest or right would, apart from a provision of a scheme under section 1(2) and paragraph 2(4) and (5), become enforceable in respect of the transfer or creation in accordance with such a scheme of any property, rights or liabilities,

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