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

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The PPP arbiter
The PPP arbiter.     222. - (1) The Secretary of State may appoint a person to an office to be known as "the Public-Private Partnership Agreement Arbiter" (in this Chapter referred to as the "PPP arbiter").
 
      (2) The PPP arbiter shall have the functions conferred or imposed on him by or under this Act.
 
      (3) The PPP arbiter shall be a corporation sole by the name of "the Public-Private Partnership Agreement Arbiter".
 
      (4) If at any time no person holds the office of PPP arbiter, the Secretary of State shall appoint a person to that office if requested in writing to do so by a party to a PPP agreement.
 
      (5) A request under subsection (4) above must not include a request for a particular person to be appointed.
 
      (6) Before making an appointment under subsection (1) or (4) above, the Secretary of State shall consult such persons as he considers appropriate concerning-
 
 
    (a) the person to be appointed; and
 
    (b) the terms of the appointment.
      (7) The office of PPP arbiter may not be held by-
 
 
    (a) the Mayor;
 
    (b) an Assembly member;
 
    (c) the Authority or a member of staff of the Authority;
 
    (d) Transport for London or a subsidiary of Transport for London;
 
    (e) a member of Transport for London or a director of a subsidiary of Transport for London;
 
    (f) a member of staff of Transport for London or of a subsidiary of Transport for London; or
 
    (g) a director or employee of a PPP company or of a subsidiary of a PPP company or of a company of which a PPP company is a subsidiary.
Terms of appointment.     223. - (1) A person appointed to be the PPP arbiter shall be appointed for such term as may be specified or described in the instrument appointing him and shall hold and vacate office as the PPP arbiter in accordance with the terms of his appointment.
 
      (2) There shall be paid to the PPP arbiter such remuneration, and such travelling and other allowances, as the Secretary of State may determine.
 
      (3) There shall be paid such pension, allowance or gratuity to or in respect of the PPP arbiter, or such contributions or payments towards provision for such a pension, allowance or gratuity, as the Secretary of State may determine.
 
      (4) A person may resign from office as the PPP arbiter at any time by giving notice to the Secretary of State.
 
      (5) The Secretary of State may remove a person from office as the PPP arbiter-
 
 
    (a) on the ground of incapacity or misbehaviour; or
 
    (b) where the Secretary of State considers that there has been unreasonable delay in the discharge of the functions of the PPP arbiter.
Staff.     224. - (1) The PPP arbiter may appoint such staff as he may determine, subject to any restrictions contained in the terms of his appointment.
 
      (2) The staff of the PPP arbiter shall be appointed on such terms and conditions as he shall determine, subject to any restrictions contained in the terms of his appointment.
 
      (3) Any function of the PPP arbiter may be exercised by any member of his staff authorised for the purpose by him or, if there is no person who holds the office of PPP arbiter, by the Secretary of State whether specially or generally.
 
Same person as PPP arbiter and Rail Regulator: duties of staff.     225. - (1) If at any time the offices of Rail Regulator and PPP arbiter are held by the same person, subsections (2) and (3) below shall apply until such time as those offices are next held by different persons.
 
      (2) Where this subsection applies, any member of the Rail Regulator's staff may (in addition to discharging duties of that employment) be required also to discharge duties as if he were a member of the PPP arbiter's staff of similar status.
 
      (3) Where this subsection applies, any member of the PPP arbiter's staff may (in addition to discharging duties of that employment) be required also to discharge duties as if he were a member of the Rail Regulator's staff of similar status.
 
      (4) Subsections (2) and (3) above apply notwithstanding anything in the terms or conditions of employment of the member of staff concerned.
 
Directions of the PPP arbiter.     226. - (1) A PPP agreement may provide for matters of any description specified in the agreement to be referred to the PPP arbiter.
 
      (2) A party to a PPP agreement may refer to the PPP arbiter for direction any matter of a description specified in a provision of that agreement by virtue of subsection (1) above.
 
      (3) Where a matter is referred under this section to the PPP arbiter for direction he-
 
 
    (a) shall give a direction in relation to that matter; and
 
    (b) may give a direction in relation to any other matter which is ancillary or incidental to the matter referred.
      (4) The directions that may be given under subsection (3) above include directions relating to the inclusion of new terms in, or the variation of existing terms of, the PPP agreement in question.
 
      (5) The PPP arbiter shall give notice of any direction under subsection (3) above to the parties to the PPP agreement in question.
 
      (6) A direction under subsection (3) above shall be final and binding-
 
 
    (a) on the parties to the PPP agreement in question, and
 
    (b) on any persons claiming through or under those parties,
  and shall, if and to the extent that the notice given under subsection (5) above so provides, take effect as a term of the PPP agreement.
 
      (7) Where a direction has been given under subsection (3) above, the parties to the PPP agreement in question may jointly agree that subsection (6) above is not to have effect in relation to that direction.
 
Guidance by the PPP arbiter.     227. - (1) Any matter relating to a PPP agreement may be referred to the PPP arbiter for consideration by him-
 
 
    (a) by all the parties to the PPP agreement acting jointly, if they so agree; or
 
    (b) by any party to the PPP agreement.
      (2) Where a matter is referred by virtue of subsection (1) above to the PPP arbiter for consideration he shall consider the matter and-
 
 
    (a) if the matter was referred under paragraph (a) of that subsection, shall give to the parties who referred the matter such guidance as he considers appropriate; or
 
    (b) if the matter was referred under paragraph (b) of that subsection, may give to the parties to the PPP agreement 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 226 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.     228. - (1) In giving in relation to a PPP agreement-
 
 
    (a) any direction under section 226(3) above, or
 
    (b) any guidance under section 227(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 that an opportunity to review and amend the requirements imposed, or proposed to be imposed, on a PPP company by or under the PPP agreement in question is afforded to the appropriate relevant body if, in the opinion of the PPP arbiter, the proper price for the performance of those requirements exceeds the resources which that relevant body has notified to the PPP arbiter that it has, or expects to have, available for the purpose.
 
  In this subsection "appropriate relevant body" means a relevant body which is a party to the PPP agreement and is to pay the price under 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 ensure that any rate of return incorporated in the PPP agreement in question would, in the opinion of the PPP arbiter,-
 
 
    (a) taking into account such matters as may be specified in the PPP agreement, and
 
    (b) leaving out of account such other matters as may be so specified,
  be earned by a company which is efficient and economic in its performance of the requirements imposed on the PPP company by or under the PPP 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 226(3) above or any guidance under section 227(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 PPP agreement-
 
 
    (a) contains provision specifying, or for determining, the rate of return which the PPP company in question might reasonably expect to earn; 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.
 
 
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