§ Mr. Bermingham
To ask the Secretary of State for Transport if he will outline the general position relating to the existence of possible mechanisms under section 20 for the withholding of funds by passenger transport authorities; and if he will make a statement.
§ Mr. Freeman
Section 20 of the Transport Act 1968 provides for passenger transport executives to enter into agreements with British Rail for the provision of local rail services. The terms of the agreements are for the parties to determine. The present agreements provide for the PTEs to withhold a percentage of claims by British Rail in certain circumstances. The general law of contract also applies.