§ 1Clause 22, page 24, line 40, at end insert:
- (a) the British Railways Board (in this Act referred to as "the Board"), or
- (b) a wholly owned subsidiary of the Board, from being a franchisee.
§ (4) Subject to the following provisions of this section, whenever the Franchising Director proposes to issue invitations to tender under section 23 below in respect of any particular services for the carriage of passengers by railway, he may, after consultation with the Board and the Regulator, determine that neither the Board nor any wholly owned subsidiary of the Board shall be eligible for inclusion among the persons to whom the invitations are to be issued or who may be selected as the franchisee.
§ (5) The Franchising Director shall not make a determination under subsection (4) above unless he considers that it is desirable to do so—
- (a) for the purpose of promoting competition for franchises;
- (b) for the purpose of promoting the award of franchise agreements to companies in which qualifying railway employees have a substantial interest;
- (c) for the purpose of encouraging new entry to the passenger railway industry; or
- (d) for the purpose of preventing or reducing the dominance of any person or persons in the market for the provision in Great Britain, or in a part of Great Britain, of services for the carriage of passengers by railway.
§ (6) The Franchising Director shall—
- (a) give notice of any determination under subsection (4) above to the Board; and
- (b) publish notice of the determination in such manner as he thinks fit.
§ (7) Nothing in subsection (5) above shall be taken to affect the matters which the Franchising Director may take into account in determining the other persons whom he invites to tender for franchise agreements or whom he selects as franchisees.
§ (8) No objectives, instructions or guidance shall be given under section 5 above by the Secretary of State to the Franchising Director with respect to the exercise of his functions under this section.
§ (9) In this section—
§ "competition for franchises" means competition to become franchisees under franchise agreements;
§ "encouraging new entry to the passenger railway industry" means encouraging private sector operators who do not currently provide services for the carriage of passengers by railway to commence doing so;
§ "qualifying railway employees", in the case of any franchise agreement, means persons who are or have been employed in an undertaking which provides or provided the services to which the franchise agreement relates at a time before those services begin to be provided under that franchise agreement. ".