Railways Act 1993 (c. 43)

(The document as of February, 2008)

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in accordance with directions given from time to time by the Treasury or, with the consent of the Treasury, by the Secretary of State.

(2) Any person holding any securities as a nominee of the Treasury or the Secretary of State by virtue of subsection (1) above shall hold and deal with them (or any of them) on such terms and in such manner as the Treasury or, with the consent of the Treasury, the Secretary of State may direct.

101 Target investment limit for Government shareholding in certain successor companies

(1) As soon as he considers expedient and, in any case, not later than six months after any operating company ceases to be a public sector railway company, the Secretary of State shall by order fix a target investment limit in relation to the shares for the time being held in that company by virtue of any provision of this Part by the Treasury and their nominees and by the Secretary of State and his nominees (in this section referred to as "the Government shareholding").

(2) The target investment limit for the Government shareholding in an operating company shall be expressed as a proportion of the voting rights which are exercisable in all circumstances at general meetings of the company (in this section referred to as "the ordinary voting rights").

(3) The first target investment limit fixed under this section for the Government shareholding in a particular company shall not exceed, by more than 0.5 per cent. of the ordinary voting rights, the proportion of those rights which is in fact carried by the Government shareholding in that company at the time when the order fixing the limit is made.

(4) The Secretary of State may from time to time by order fix a new target investment limit for the Government shareholding in an operating company in place of the one previously in force under this section; but--

(a) any new limit must be lower than the one it replaces; and

(b) an order under this section may only be revoked by an order fixing a new limit.

(5) It shall be the duty of the Treasury and of the Secretary of State so to exercise--

(a) their powers under section 99 above and any power to dispose of any shares held by virtue of any provision of this Part, and

(b) their power to give directions to their respective nominees,

as to secure in relation to each operating company that the Government shareholding in that company does not carry a proportion of the ordinary voting rights exceeding any target investment limit for the time being in force under this section in relation to that company.

(6) Notwithstanding subsection (5) above but subject to subsection (7) below, the Treasury or the Secretary of State may take up, or direct any nominee of the Treasury or of the Secretary of State to take up, any rights which are for the time being available to them or him, or to the nominee, either--

(a) as an existing holder of shares or other securities of an operating company; or

(b) by reason of the rescission of any contracts for the sale of such shares or securities.

(7) If, as a result of anything done under subsection (6) above, the proportion of the ordinary voting rights carried by the Government shareholding in an operating company at any time exceeds the target investment limit for the time being in force under this section in relation to that company, it shall be the duty of the Treasury or, as the case may be, the Secretary of State to comply with subsection (5) above as soon after that time as is reasonably practicable.

(8) For the purposes of this section the temporary suspension of any of the ordinary voting rights shall be disregarded.

(9) The Secretary of State shall not exercise any power conferred on him by this section except with the consent of the Treasury.

(10) In this section--

"operating company" means a successor company--
(a)
which is a company limited by shares and formed and registered under the [1985 c. 6.] Companies Act 1985 (or the former Companies Acts, as defined in section 735(1)(c) of that Act);
(b)
which was a public sector railway company at the time when any property, rights or liabilities of another public sector railway company were vested in it by a transfer scheme;
(c)
which has since ceased to be a public sector railway company; and
(d)
which at the time of the vesting referred to in paragraph (b) above was not, and at no time since has been, a franchise company;
"public sector railway company" means--
(a)
the Board;
(b)
any wholly owned subsidiary of the Board; or
(c)
any publicly owned railway company.

Finances of successor companies

102 Temporary restrictions on borrowings etc

(1) If articles of association of a successor company confer on the Secretary of State powers exercisable with the consent of the Treasury for, or in connection with, restricting the sums of money which may be borrowed or raised by the group during any period, those powers shall be exercisable in the national interest notwithstanding any rule of law and the provisions of any enactment.

(2) For the purposes of this section an alteration of the articles of association of a successor company shall be disregarded if the alteration--

(a) has the effect of conferring or extending any such power as is mentioned in subsection (1) above; and

(b) is made at a time when that company is neither a wholly owned subsidiary of the Board nor wholly owned by the Crown.

(3) In this section "group", in relation to a company, means that company and all of its subsidiaries taken together.

103 Government lending to certain successor companies

(1) The Secretary of State may, with the approval of the Treasury, make loans of such amounts as he thinks fit to any successor company which is for the time being wholly owned by the Crown.

(2) Any loans which the Secretary of State makes under this section shall be repaid to him at such times and by such methods, and interest on any such loans shall be paid to him at such rates and at such times, as he may, with the approval of the Treasury, from time to time direct.

(3) The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are required by him for making loans under this section.

(4) Any sums received under subsection (2) above by the Secretary of State shall be paid into the National Loans Fund.

(5) It shall be the duty of the Secretary of State as respects each financial year--

(a) to prepare, in such form as the Treasury may direct, an account of sums issued to him in pursuance of subsection (3) above and of sums received by him under subsection (2) above and of the disposal by him of the sums so issued or received; and

(b) to send the account to the Comptroller and Auditor General not later than the end of the month of August in the following financial year;

and the Comptroller and Auditor General shall examine, certify and report on the account and shall lay copies of it and of his report before each House of Parliament.

104 Treasury guarantees for loans made to certain successor companies

(1) The Treasury may guarantee, in such manner and on such terms as they may think fit, the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums which are borrowed from a person other than the Secretary of State by any successor company which is for the time being wholly owned by the Crown.

(2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and immediately after any sum is issued for fulfilling a guarantee so given, the Treasury shall so lay a statement relating to that sum.

(3) Any sums required by the Treasury for fulfilling a guarantee under this section shall be charged on and issued out of the Consolidated Fund.

(4) If any sums are issued in fulfilment of a guarantee given under this section, the company whose obligations are so fulfilled shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct--

(a) payments of such amounts as the Treasury may so direct in or towards repayment of the sums so issued; and

(b) payments of interest on what is outstanding for the time being in respect of sums so issued at such rate as the Treasury may so direct.

(5) Any sums received under subsection (4) above by the Treasury shall be paid into the Consolidated Fund.

105 Grants to certain successor companies

(1) The Secretary of State may, with the approval of the Treasury, make to any successor company which is for the time being wholly owned by the Crown grants of such amounts, at such times and in such manner, as he may with the approval of the Treasury determine, towards the expenditure of that company.

(2) Grants under this section may be made subject to such conditions as the Secretary of State with the approval of the Treasury may determine.

(3) Any sums required by the Secretary of State for making grants under this section shall be paid out of money provided by Parliament.

106 Extinguishment of certain liabilities of successor companies

(1) The Secretary of State may by order extinguish all or any of the liabilities of a successor company which is for the time being--

(a) a wholly owned subsidiary of the Board, or

(b) wholly owned by the Crown,

in respect of the principal of such relevant loans as may be specified in the order; and the assets of the National Loans Fund shall accordingly be reduced by amounts corresponding to any liabilities so extinguished.

(2) Where the Secretary of State has made an order under subsection (1) above and he considers it appropriate to do so, he may from time to time give a direction under this subsection to the company whose liabilities are extinguished by the order, or to a company or companies wholly owning the company whose liabilities are so extinguished; and a company to which such a direction is given shall, as a consequence of the making of the order, issue such securities of the company as may be specified or described in the direction--

(a) to the Treasury or the Secretary of State; or

(b) if it is the company whose liabilities are extinguished by the order, to a company or companies wholly owning that company.

(3) For the purposes of any statutory accounts of a company to whom securities are issued by virtue of subsection (2)(b) above, the value at the time of its issue of any such security shall be taken--

(a) in the case of a share, to have been equal to its nominal value; and

(b) in the case of a debenture, to have been equal to the principal sum payable under the debenture,

and such nominal value or principal sum shall be taken in those accounts to be accumulated realised profits.

(4) In subsection (3) above "statutory accounts of a company" means any accounts prepared by the company for the purpose of any provision of the [1985 c. 6.] Companies Act 1985 (including group accounts).

(5) The Secretary of State--

(a) shall not give a direction under subsection (2) above for the issue of securities except at a time when the company whose liability is extinguished by the order or, as the case may be, the company which is directed to issue securities satisfies the condition in subsection (6) below; and

(b) shall not give a direction under paragraph (b) of subsection (2) above except at a time when the company, or each of the companies, to whom the securities are to be issued satisfies that condition.

(6) The condition referred to in subsection (5) above is that the company is for the time being--

(a) a wholly owned subsidiary of the Board; or

(b) wholly owned by the Crown.

(7) Unless the Secretary of State otherwise determines in any particular case, where a company is directed to issue debentures in pursuance of this section--

(a) the aggregate of the principal sums payable under the debentures to which the direction relates shall be equal to the aggregate of the sums the liability to repay which is extinguished by the order; and

(b) the terms as to the payment of the principal sums payable on the debentures to which the direction relates, and as to the payment of interest on those principal sums, shall be the same as the corresponding terms of the loans specified in the order.

(8) For the purposes of subsection (7) above, any express or implied terms of a loan shall be disregarded in so far as they relate to the early discharge of liabilities to make repayments of principal and payments of interest.

(9) Subsections (5) to (7) of section 98 above shall apply for the purposes of this section as they apply for the purposes of that section.

(10) The Secretary of State shall not exercise any power conferred on him by this section except with the consent of the Treasury.

(11) In this section "relevant loan", in relation to a successor company, means any loan made to the Board under section 20 of the [1962 c. 46.] Transport Act 1962, if and to the extent that the liability to repay that loan is transferred to and vested in that company by virtue of a transfer scheme.

(12) For the purposes of this section the company or companies wholly owning another company are--

(a) any company of which that other is a wholly owned subsidiary, or

(b) any two or more companies which between them hold all the issued securities of that other.

Provisions with respect to flotation

107 Responsibility for composite listing particulars of certain licensed successor companies

(1) In any case where--

(a) the same document contains listing particulars for securities of two or more licensed successor companies, and

(b) any person's responsibility for any information included in the document is stated in the document to be confined to its inclusion as part of the listing particulars for securities of any one of those companies,

that person shall not be treated as responsible for that information in so far as it is stated in the document to form part of the listing particulars for securities of any other of those companies.

(2) Sections 150 and 154 of the 1986 Act (advertisements etc in connection with listing applications) shall have effect in relation to any information issued for purposes connected with any securities of a licensed successor company as if any reference to a person's incurring civil liability included a reference to any other person being entitled, as against that person, to be granted a civil remedy or to rescind or repudiate any contract.

(3) Subsections (1) and (2) above have effect only in relation to licensed successor companies--

(a) which are wholly owned subsidiaries of the Board; or

(b) which are wholly owned by the Crown.

(4) In this section--

"the 1986 Act" means the [1986 c. 60.] Financial Services Act 1986;
"licensed successor company" means a successor company which is the holder of a licence under section 8 above;
"listing particulars" means any listing particulars or supplementary listing particulars within the meaning of the 1986 Act;
"responsible" means responsible for the purposes of Part IV of the 1986 Act and "responsibility" shall be construed accordingly.

108 Application of Trustee Investments Act 1961 in relation to investment in certain licensed successor companies

(1) Subsection (2) below shall have effect for the purpose of applying paragraph 3(b) of Part IV of Schedule 1 to the [1961 c. 62.] Trustee Investments Act 1961 (which provides that shares and debentures of a company shall not count as wider-range and narrower-range investments respectively within the meaning of that Act unless the company has paid dividends in each of the five years immediately preceding that in which the investment is made) in relation to investment, during the first investment year or any following year, in shares or debentures of a licensed successor company--

(a) whose shares or debentures are included in the Official List, within the meaning of Part IV of the [1986 c. 60.] Financial Services Act 1986, in pursuance of that Part; and

(b) which, immediately before its shares or debentures were admitted to that Official List, was--

(i) a wholly owned subsidiary of the Board; or

(ii) a company wholly owned by the Crown.

(2) The licensed successor company shall be deemed to have paid a dividend as mentioned in the said paragraph 3(b)--

(a) in every year preceding the first investment year which is included in the relevant five years; and

(b) in the first investment year, if that year is included in the relevant five years and that company does not in fact pay such a dividend in that year.

(3) In this section--

"the first investment year", in relation to a licensed successor company means the calendar year in which shares in that company are first issued in pursuance of section 98(2) above;
"licensed successor company" has the same meaning as it has in section 107 above;
"the relevant five years" means the five years immediately preceding the year in which the investment in question is made or proposed to be made.

Other financial provisions

109 Grants to the Board

After section 21 of the [1962 c. 46.] Transport Act 1962 (Treasury guarantees) there shall be inserted--

" 21A Grants to the Railways Board

(1) The Secretary of State may, with the approval of the Treasury, make to the Railways Board grants of such amounts, at such times and in such manner, as he may with the approval of the Treasury determine--

(a) towards the expenditure of that Board; or

(b) without prejudice to paragraph (a) of this subsection, for the purpose of enabling that Board to make any payment (whether by way of repayment of principal or payment of interest or of any other description) in respect of any loan made to them under section twenty of this Act.

(2) Grants under this section may be made subject to such conditions as the Secretary of State may with the approval of the Treasury determine.

(3) Any sums required by the Secretary of State for making grants under this section shall be paid out of money provided by Parliament.

(4) This section is without prejudice to any other power to make grants to the Railways Board. " .

110 Application of sections 19 to 21A of the Transport Act 1962 to wholly owned subsidiaries of the Board

(1) If the Secretary of State by order so provides, sections 19 to 21A of the [1962 c. 46.] Transport Act 1962 (which, among other things, make provision for and in connection with--

(a) the borrowing powers of the Board,

(b) the making by the Secretary of State of loans to the Board,

(c) the giving by the Treasury of guarantees in respect of sums borrowed by the Board from persons other than the Secretary of State, and

(d) the making by the Secretary of State of grants to the Board),

shall apply in relation to any wholly owned subsidiary of the Board designated in the order as they apply in relation to the Board, but with such modifications as may be specified in the order.

(2) Without prejudice to the generality of the modifications of those sections that may be specified in an order under this section, any such order may include provision imposing limits on the amounts that may be outstanding at any time in respect of the principal of any money borrowed by wholly owned subsidiaries of the Board under section 19 of the [1962 c. 46.] Transport Act 1962 in its application by virtue of this section.

111 Financial limits on loans

In section 42 of the [1968 c. 73.] Transport Act 1968, in subsection (6) (limit on aggregate amount outstanding in respect of the principal of any money borrowed by the Board under section 19 of the [1962 c. 46.] Transport Act 1962 and the Board's commencing capital debt), paragraph (b) (which relates to the Board's commencing capital debt, and which is spent) shall be omitted and after that paragraph there shall be inserted--

" (c) the principal of any money borrowed by wholly owned subsidiaries of the Board under that section in its application by virtue of section 110 of the Railways Act 1993, " .

Stamp duty and stamp duty reserve tax

112 Stamp duty and stamp duty reserve tax

Schedule 9 to this Act (which makes provision about stamp duty and stamp duty reserve tax in relation to or in connection with the other provisions of this Part) shall have effect.

Supplemental

113 Objectives of the Secretary of State and corresponding duties of the Board

(1) It shall be the principal objective of the Secretary of State in exercising the powers conferred on him by or under sections 84 to 97 above to secure as soon as, in his opinion, is reasonably practicable the result that the function of providing railway services in Great Britain is performed by private sector operators.

(2) In pursuing that principal objective, the Secretary of State shall have regard to the desirability of--

(a) encouraging competition between those who provide railway services;

(b) maintaining efficiency, economy and safety of operation in the provision of railway services in Great Britain;

(c) providing opportunities for persons employed in railway undertakings to acquire (whether alone or jointly with others) an interest in the ownership of the undertakings in which they are employed; and

(d) securing that the disposal takes place on the most favourable financial terms that can reasonably be obtained in all the circumstances of the case;

and for the purposes of paragraph (d) above, financial terms may be regarded as "favourable" notwithstanding that any expenses incurred in procuring or effecting the disposal are not exceeded by any proceeds of sale arising from it.

(3) The Secretary of State may give the Board directions, whether of a general or specific character, requiring such steps as may be specified or otherwise described in the directions to be taken by the Board with a view to--

(a) facilitating the attainment by the Secretary of State of the principal objective specified in subsection (1) above;

(b) identifying methods of accomplishing any of the matters specified in paragraphs (a) to (d) of subsection (2) above; or

(c) generally assisting in securing the prompt and effective implementation of any proposals made by the Secretary of State for the exercise of any power conferred on him by or under this Act.

(4) Expressions used in this section and in Part I above have the same meaning in this section as they have in that Part.

114 The Secretary of State, the Franchising Director and the Board not to be regarded as shadow directors of certain railway companies etc

(1) None of the following persons, that is to say--

(a) the Secretary of State,

(b) the Franchising Director,

shall be regarded for any purpose of the [1985 c. 6.] Companies Act 1985 or the [S.I. 1986/1032 (N.I. 6).] Companies (Northern Ireland) Order 1986 as a shadow director, within the meaning of that Act or Order, of any body falling within subsection (2) below.

(2) Those bodies are--

(a) any publicly owned railway company;

(b) any company which is wholly owned by the Franchising Director;

(d) any franchise company;

(e) any company concerning which a direction (whether of a general or specific character) has been given under section 90 above to the Board with respect to the exercise by the Board of the rights conferred by their holding of interests in that company.

115 Parliamentary disqualification

In Part III of Schedule 1 to the [1975 c. 24.] House of Commons Disqualification Act 1975, the following entry shall be inserted at the appropriate place--

(a) which, within the meaning of Part II of the Railways Act 1993, is a successor company wholly owned by the Crown, or

(b) which, within the meaning of that Act, is wholly owned by the Director of Passenger Rail Franchising,

being a director nominated or appointed by a Minister of the Crown, the Director of Passenger Rail Franchising or any other person acting on behalf of the Crown " .

116 Interpretation of Part II

(1) In this Part, unless the context otherwise requires--

"dispose", in relation to any land, includes the making of any disposition and "disposal" shall be construed accordingly;
"franchise company" has the meaning given by section 85(8) above;
"property", "rights" and "liabilities" shall be construed in accordance with section 85(2) above and subsection (2) below;
"successor company" means a company in which any property, rights or liabilities are vested by virtue of and in accordance with a transfer scheme;
"transfer date" has the meaning given by section 85(6) or, as the case may be, 86(5)(b) above;
"transferee" and "transferor", in relation to any transfer of property, rights or liabilities effected or proposed to be effected by virtue of a transfer scheme, mean respectively the person to whom and the person from whom they are, or are to be, so transferred.

(2) Any reference in this Part to property, rights or liabilities is a reference to property or (as the case may be) rights or liabilities--

(a) whether or not capable of being transferred or assigned otherwise than under or by virtue of this Act;

(b) whether situate or subsisting in the United Kingdom or elsewhere; and

(c) whether the person entitled to the property or rights or, as the case may be, subject to the liabilities is so entitled or subject--

(i) under the law of the United Kingdom or of any part of the United Kingdom; or

(ii) under the law of any country or territory outside the United Kingdom;

and references to an undertaking or part of an undertaking shall be construed accordingly.

Part III Miscellaneous, General and Supplemental Provisions

Safety, emergencies, security etc.

117 Safety of railways and other guided transport systems

(1) Part I of the [1974 c. 37.] Health and Safety at Work etc. Act 1974 ("the 1974 Act") shall have effect as if the provisions mentioned in subsection (4) below (which relate to the proper construction and safe operation of certain transport systems, and of the vehicles used on those systems, and the protection of railway employees or the general public from personal injury and other risks arising therefrom)--

(a) were existing statutory provisions, within the meaning of that Part; and

(b) in the case of the enactments mentioned in paragraphs (a) to (m) of that subsection, were specified in the third column of Schedule 1 to that Act.

(2) If to any extent they would not do so apart from this subsection, the general purposes of Part I of the 1974 Act shall include--

(a) securing the proper construction and safe operation of transport systems to which this section applies, and of any locomotives, rolling stock or other vehicles used, or to be used, on those systems; and

(b) protecting the public (whether passengers or not) from personal injury and other risks arising from the construction and operation of transport systems to which this section applies.

(3) Without prejudice to the generality of subsection (1) of section 15 of the 1974 Act (health and safety regulations), regulations under that section may--

(a) repeal or modify any of the provisions mentioned in subsection (4) below; and

(b) make any provision which, but for any such repeal or modification, could be made by regulations or orders made under any enactment there mentioned.

(4) The provisions referred to in subsections (1) and (3) above are--

(a) the [1839 c. 45.] Highway (Railway Crossings) Act 1839;

(b) sections 9 and 10 of the [1842 c. 55.] Railway Regulation Act 1842;

(d) the [1871 c. 78.] Regulation of Railways Act 1871;

(e) sections 1 and 4 of the [1889 c. 57.] Regulation of Railways Act 1889;

(f) the [1900 c. 27.] Railway Employment (Prevention of Accidents) Act 1900;

(g) section 42 of the [1933 c. 53.] Road and Rail Traffic Act 1933;

(h) section 40 of the [1954 c. lv.] British Transport Commission Act 1954;

(j) section 66 of the [1957 c. xxxiii.] British Transport Commission Act 1957;

(k) sections 124 and 125 of the [1968 c. 73.] Transport Act 1968;

(l) the [1983 c. 16.] Level Crossings Act 1983;

(m) sections 41 to 45 of the [1992 c. 42.] Transport and Works Act 1992;

(n) any regulations made under section 2 of the [1972 c. 68.] European Communities Act 1972 for the purpose of implementing the Council 91/440/EEC. Directive of 29th July 1991 on the development of the Community's railways, so far as the regulations are made for safety purposes.

(5) In consequence of subsection (1) above and the resulting application of sections 38 and 50 of the 1974 Act (consent to prosecutions, and procedural requirements for making regulations)--

(a) in section 57 of the [1992 c. 42.] Transport and Works Act 1992 (duty to consult before making regulations under, among other provisions, section 38(2), 41 or 43 of that Act) for the words "38(2), 41 or 43" there shall be substituted the words "or 38(2)"; and

(b) in section 58 of that Act (which requires the consent of the Secretary of State or the Director of Public Prosecutions to a prosecution for an offence under Part II of that Act) after the words "offence under this Part" there shall be inserted the words ", other than an offence under section 41 or 43 above,".

(6) This section applies to the following transport systems, that is to say--

(a) any railway, tramway or trolley vehicle system; or

(b) any transport system using any other mode of guided transport.

(7) The definitions of "guided transport", "railway", "tramway", "trolley vehicle system" and "vehicle" in section 67(1) of the [1992 c. 42.] Transport and Works Act 1992 shall have effect for the purposes of this section as they have effect for the purposes of that Act, but disregarding for the purposes of this section paragraph (b) of the definition of "railway" (which includes a condition as to the minimum gauge of the track).

118 Control of railways in time of hostilities, severe international tension or great national emergency

(1) In time of hostilities, whether actual or imminent, severe international tension or great national emergency, the Secretary of State may give directions under this subsection to such of the following persons as he may consider appropriate, that is to say--

(a) the Regulator;

(b) the Franchising Director;

(d) any person who provides railway services.

(2) The Secretary of State may at any time give directions under this subsection to any person falling within paragraphs (a) to (d) of subsection (1) above whom he may consider appropriate, requiring that person to participate in the planning of steps that might be taken in time of actual or imminent hostilities, severe international tension or great national emergency.

(3) The power to give directions under subsection (1) above to the Regulator or the Franchising Director includes power to direct him to carry out his functions in such manner or for such purposes as may be specified in the direction.

(4) The power to give directions under subsection (1) above to a person who is the owner or operator of a relevant asset or who provides railway services includes power--

(a) in the case of a person who is the owner of a relevant asset, to direct that person to permit the use of, or to exercise his rights over, the relevant asset in such manner or for such purposes as may be specified in the direction;

(b) in the case of a person who is the operator of a relevant asset, to direct that person to exercise his powers of management over the relevant asset in such manner or for such purposes as may be so specified; and

(c) in the case of a person who provides railway services, to direct that person to do so in such manner or for such purposes as may be so specified.

(5) The Regulator and the Franchising Director shall each be under a duty to comply with a direction given to him under this section, notwithstanding the requirements of any other enactment or instrument relating to him.

(6) A person who is the owner or operator of a relevant asset or who provides railway services shall be under a duty to comply with a direction given to him under this section, notwithstanding the requirements of any other enactment or instrument relating to him or to--

(a) the use of, or the exercise of rights over, the relevant asset,

(b) the management of the relevant asset, or

as the case may be, and notwithstanding any other duty or obligation to which he may be subject.

(7) Any person who, without reasonable excuse, contravenes or fails to comply with a direction given to him under this section is guilty of an offence and shall be liable--

(a) on summary conviction, to a fine not exceeding the statutory maximum; or

(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding two years or both.

(8) No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or with the consent of the Secretary of State or the Director of Public Prosecutions.

(9) Any person (other than the Regulator and the Franchising Director) who suffers direct injury or loss arising from compliance with a direction under subsection (1) above shall be entitled to receive compensation from the Secretary of State of such amount as may be agreed by that person and the Secretary of State or, in default of agreement, of such amount as may be determined--

(a) where the proceedings are to be held in England and Wales, by an arbitrator appointed by the President for the time being of the Royal Institution of Chartered Surveyors, or

(b) where the proceedings are to be held in Scotland, by an arbiter appointed by the Lord President of the Court of Session.

(10) Any sums required by the Secretary of State for paying compensation under this section shall be paid out of money provided by Parliament.

(11) In this section--

"great national emergency" means any natural disaster or other emergency which, in the opinion of the Secretary of State, is or may be likely to give rise to such disruption of the means of transport that the population, or a substantial part of the population, of Great Britain is or may be likely to be deprived of essential goods or services;
"operator", in relation to a relevant asset, means the person having the management of the relevant asset for the time being;
"owner", in relation to a relevant asset, means any person--
(a)
who is the owner of, or who has any right over or interest in, the relevant asset; and
(b)
whose consent is needed to the use of the relevant asset by any other person;
"relevant asset" means a network, a station, a light maintenance depot or any track or rolling stock;

and, subject to that, expressions used in this section and in Part I or II above have the same meaning in this section as they have in that Part.

(12) In consequence of this section, section 27(6) of the [1962 c. 46.] Transport Act 1962 (directions to Boards in the interests of national defence) shall cease to have effect so far as relating to the Board.

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