Greater London Authority Bill - continued        House of Lords
PART IV, TRANSPORT - continued
The PPP arbiter - continued

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Guidance by the PPP arbiter.     185. - (1) The parties to a PPP agreement may jointly agree to refer any matter relating to the agreement to the PPP arbiter for consideration.
 
      (2) Where a matter is referred by virtue of subsection (1) above to the PPP arbiter for consideration he shall consider the matter and shall give to the parties who referred the matter such guidance as he considers appropriate.
 
      (3) The guidance which may be given by the PPP arbiter by virtue of subsection (2) above includes guidance about any matter which he considers relevant to the PPP agreement in question.
 
      (4) Where the PPP arbiter has given any guidance under this section in relation to a matter which is subsequently referred to him for direction under subsection (3) of section 184 above, the direction which may be given by the PPP arbiter under that subsection is not restricted by that guidance.
 
Duty of the PPP arbiter.     186. - (1) In giving in relation to a PPP agreement-
 
 
    (a) any direction under section 184(3) above, or
 
    (b) any guidance under section 185(2) above,
  the PPP arbiter shall act in the way he considers best calculated to achieve the objectives specified in subsections (2) to (5) below.
 
      (2) The objective specified in this subsection is to ensure the performance of the PPP agreement in question so as to secure that the railway infrastructure to which the agreement relates-
 
 
    (a) is provided, constructed, renewed or improved, as the case may be, and
 
    (b) is maintained,
  having regard to the resources available to any relevant body which is a party to the agreement.
 
      (3) The objective specified in this subsection is to promote efficiency and economy-
 
 
    (a) in the provision, construction, renewal, or improvement, as the case may be, and
 
    (b) in the maintenance,
  of the railway infrastructure to which the PPP agreement in question relates.
 
      (4) The objective specified in this subsection is to enable any PPP company which is a party to the PPP agreement in question, and which the PPP arbiter considers to be efficient and economic in performing the agreement, to earn the rate of return incorporated in the agreement.
 
      (5) The objective specified in this subsection is to enable any PPP company which is a party to the PPP agreement in question to plan the future performance of the agreement with reasonable certainty.
 
      (6) In giving any such direction or guidance as is mentioned in subsection (1) above the PPP arbiter is to take account of any factors which-
 
 
    (a) are notified to him by the parties to the PPP agreement in question, acting jointly, as factors to which he must have regard when giving the direction or guidance in question, or
 
    (b) are factors specified or described in the PPP agreement in question as factors to which the PPP arbiter must have regard in giving any direction under section 184(3) above or any guidance under section 185(2) above.
      (7) For the purposes of subsection (4) above, a rate of return is "incorporated in a PPP agreement" if, and only if, the agreement-
 
 
    (a) makes provision for the rate of return to be earned under the agreement by the PPP company concerned, and
 
    (b) states that subsection (4) above is to have effect in relation to that provision.
      (8) In this section "railway infrastructure" means the railway or proposed railway in question and includes a reference to any stations, rolling stock or depots used or to be used in connection with that railway.
 
Further powers.     187. - (1) For the purposes of the proper discharge of the functions conferred or imposed on him by or under this Act, the PPP arbiter may-
 
 
    (a) carry out inspections of such of the railway infrastructure or equipment belonging to, or under the control of, any party to a PPP agreement as he considers appropriate;
 
    (b) consult such bodies or persons as he considers appropriate in relation to any direction or guidance given or proposed to be given by him;
 
    (c) do all such things as he considers appropriate for or in connection with the giving of a direction under section 184(3) above or guidance under section 185(2) above; and
 
    (d) do such other things as he considers necessary or expedient.
      (2) The powers conferred on the PPP arbiter by this section and section 188 below are exercisable for purposes preparatory or ancillary to the giving of directions or guidance under this Chapter generally and notwithstanding that there is no matter in relation to which a direction under section 184(3) above, or guidance under section 185(2) above, is required.
 
      (3) In this section "railway infrastructure" has the same meaning as in section 186 above.
 
Provision of information to the PPP arbiter.     188. - (1) Any person falling within subsection (2) below shall, at the request of the PPP arbiter, provide him with such information as the PPP arbiter considers relevant to the proper discharge of the functions conferred or imposed on him by or under this Act and as may be specified or described in the request.
 
      (2) The persons who fall within this subsection are-
 
 
    (a) any party to a PPP agreement;
 
    (b) any associate of a party to a PPP agreement; and
 
    (c) any party to a related third party agreement within the meaning of section 172 above.
      (3) The information shall be provided in such form and manner, and within such time, as may be specified in the request.
 
      (4) A person is not obliged by virtue of this section to provide any information which he would be entitled to refuse to provide in or for the purposes of proceedings in a court in England and Wales.
 
      (5) For the purposes of subsection (2)(b) above, "associate", in relation to a party to a PPP agreement, means-
 
 
    (a) a parent undertaking of that party;
 
    (b) a subsidiary undertaking of any parent undertaking of that party;
 
    (c) a subsidiary undertaking of that party; or
 
    (d) an undertaking in which that party, or any undertaking falling within paragraphs (a) to (c) above, has a participating interest.
      (6) For the purposes of subsection (5) above-
 
 
    "parent undertaking" and "subsidiary undertaking" shall be construed in accordance with section 258 of the Companies Act 1985;
 
    "undertaking" has the meaning given by section 259 of that Act; and
 
    "participating interest" has the meaning given by section 260 of that Act.
Immunity.     189. - (1) The PPP arbiter is not liable for anything done or omitted in the discharge or purported discharge of his functions as the PPP arbiter unless the act or omission is shown to have been in bad faith.
 
      (2) Subsection (1) above applies to a member of the staff of, or an agent of, the PPP arbiter as it applies to the PPP arbiter.
 
Expenses.     190. - (1) The following expenses, namely-
 
 
    (a) any sums payable by virtue of section 182(2) or (3) above, and
 
    (b) any expenses duly incurred by the PPP arbiter or by any staff of the PPP arbiter,
  shall be defrayed by the Secretary of State.
 
      (2) A relevant body which is a party to a PPP agreement shall pay to the Secretary of State, at such times as he may direct, such sums as the Secretary of State may determine in respect of expenses defrayed by the Secretary of State under subsection (1) above.
 
      (3) A PPP agreement may provide that sums paid by a relevant body by virtue of subsection (2) above, or any portion of such sums as may be specified or described in the PPP agreement, may be recovered by the relevant body from a PPP company which is a party to the PPP agreement.
 
      (4) Where a PPP agreement includes provision by virtue of subsection (3) above making any sum recoverable by a relevant body, the directions which may be given under section 184(3) above include directions varying the amount so recoverable.
 
      (5) Sums received by the Secretary of State by virtue of this section shall be paid into the Consolidated Fund.
 
 
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