Transport Bill - continued        House of Lords
PART I, AIR TRAFFIC - continued
Restrictions - continued

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Licences: grant.     6. - (1) A licence may be granted by-
 
 
    (a) the Secretary of State after consulting the CAA,
 
    (b) the CAA with the consent of the Secretary of State, or
 
    (c) the CAA in accordance with a general authority given by the Secretary of State.
      (2) A general authority may be given on condition that the CAA complies with specified requirements (whether as to consulting the Secretary of State or obtaining his consent before granting a licence, as to the provisions to be included in a licence, or otherwise).
 
      (3) An application for a licence-
 
 
    (a) must be made in the prescribed manner;
 
    (b) must contain or be accompanied by prescribed information;
 
    (c) must be accompanied by the application fee (if any);
 
    (d) must, if the licence authority requires, be published by the applicant in the prescribed manner and within a period notified to it by the licence authority.
      (4) On an application the licence authority may grant or refuse the licence.
 
      (5) Before granting or refusing a licence the licence authority must-
 
 
    (a) publish a notice in such manner as the authority thinks appropriate for bringing it to the attention of persons likely to be affected by the grant or refusal,
 
    (b) serve a copy of the notice on the applicant, and
 
    (c) consider any representations made in accordance with the notice (and not withdrawn).
      (6) The notice must-
 
 
    (a) state either that the licence authority proposes to grant the licence or that it proposes to refuse it and (in either case) the reasons for so proposing, and
 
    (b) state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposed grant or refusal.
      (7) As soon as practicable after granting a licence the grantor must send a copy-
 
 
    (a) to the CAA, if the grantor is the Secretary of State;
 
    (b) to the Secretary of State, if the grantor is the CAA.
      (8) The following requirements do not apply in relation to licences which need to be granted before the coming into force of section 3-
 
 
    (a) the requirement to consult imposed by subsection (1)(a);
 
    (b) the requirements imposed by subsection (3);
 
    (c) the requirements imposed by subsections (5) and (6).
      (9) The licence authority is the Secretary of State or the CAA (depending on the person to whom it falls to grant the licence).
 
      (10) The application fee is-
 
 
    (a) the prescribed fee, if the licence authority is the Secretary of State;
 
    (b) the charge determined under a scheme or regulations made under section 11 of the Civil Aviation Act 1982, if the licence authority is the CAA.
      (11) "Prescribed" means prescribed by regulations made by the Secretary of State.
 
Licences: provisions.     7. - (1) A licence may include such provisions as the licence authority thinks are necessary or expedient; and a provision need not relate to services authorised by the licence.
 
      (2) A licence may include provisions requiring a payment on its grant or payments during its currency (or both)-
 
 
    (a) of an amount or amounts specified in the licence or determined by or under it;
 
    (b) to a person or persons specified in the licence or determined by or under it.
      (3) A provision relating to the modification of a licence is to have effect in addition to the provisions of this Chapter regarding modification.
 
      (4) Such provisions as the licence authority thinks fit may be expressed as conditions.
 
      (5) The licence authority is the Secretary of State or the CAA (depending on the person to whom it falls to grant the licence).
 
Duties of licence holders.     8. - (1) While a licence is in force its holder-
 
 
    (a) must secure that a safe system for the provision of authorised air traffic services in respect of a licensed area is provided, developed and maintained;
 
    (b) must take all reasonable steps to secure that the system is also efficient and co-ordinated;
 
    (c) must take all reasonable steps to secure that the demand for authorised air traffic services in respect of a licensed area is met;
 
    (d) must have regard, in providing, developing and maintaining the system, to the demands which are likely to be placed on it in the future.
      (2) A licensed area is an area in respect of which the licence authorises its holder to provide air traffic services.
 
      (3) Authorised services are services of the description specified in the licence as the description of services which the holder of the licence is authorised to provide.
 
      (4) For the purposes of subsection (1)(a) a system for the provision of services is safe if (and only if) in providing the services the person who provides them complies with such requirements as are imposed by Air Navigation Orders with regard to their provision.
 
      (5) An Air Navigation Order is an Order in Council under section 60 of the Civil Aviation Act 1982.
 
Breach of duties or conditions.     9. - (1) No action is to lie in respect of a failure by a licence holder to perform-
 
 
    (a) a duty imposed by section 8;
 
    (b) a condition of a licence.
      (2) But subsection (1) does not affect-
 
 
    (a) a right of action in respect of an act or omission which takes place in the course of the provision of air traffic services;
 
    (b) the power to make an order under section 17, a duty to comply with the order and a power to bring proceedings in respect of the duty.
 
Modification of licences
Modification by agreement.     10. - (1) The CAA may modify the conditions of a licence if its holder consents to the modifications.
 
      (2) Before making modifications under this section the CAA must-
 
 
    (a) publish a notice in such manner as the CAA thinks appropriate for bringing it to the attention of persons likely to be affected by the making of the modifications,
 
    (b) serve a copy of the notice on the licence holder,
 
    (c) send a copy of the notice to the Secretary of State, and
 
    (d) consider any representations made in accordance with the notice.
      (3) The notice must-
 
 
    (a) state that the CAA proposes to make the modifications and state their effect and the reasons for so proposing, and
 
    (b) state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposed modifications.
      (4) If within the period stated under subsection (3)(b) the Secretary of State gives a direction to the CAA requiring it not to make the modifications the CAA must comply with the direction.
 
      (5) As soon as practicable after making modifications under this section the CAA must send a copy of them to the licence holder and a copy to the Secretary of State.
 
References to Competition Commission.     11. - (1) The CAA may make to the Competition Commission a reference requiring the Commission to investigate and report on-
 
 
    (a) whether any matters which are specified in the reference and which relate to the provision of air traffic services by or on behalf of a licence holder operate against the public interest or may be expected to do so;
 
    (b) if so, whether the effects adverse to the public interest which the matters have or may be expected to have could be remedied or prevented by modifying the conditions of the licence.
      (2) The CAA may at any time by notice given to the Commission vary a reference by adding to the matters specified in it or by excluding from it one or more of those matters; and on receiving a notice the Commission must give effect to the variation.
 
      (3) To help the Commission in its investigation the CAA may specify in the reference or a variation of it-
 
 
    (a) any effects adverse to the public interest which in its opinion the matters specified in the reference or variation have or may be expected to have;
 
    (b) any modifications of the conditions of the licence by which in its opinion those effects could be remedied or prevented.
      (4) As soon as practicable after making a reference or variation the CAA must-
 
 
    (a) serve a copy of the reference or variation on the licence holder;
 
    (b) publish particulars of the reference or variation in such manner as the CAA considers appropriate for bringing it to the attention of persons likely to be affected by it;
 
    (c) send a copy of the reference or variation to the Secretary of State.
      (5) If before the end of the period of 28 days starting with the day on which the Secretary of State receives the copy he gives a direction to the Commission requiring it not to proceed with the reference or not to give effect to the variation, the Commission must comply with the direction.
 
      (6) To help the Commission in its investigation the CAA must give to the Commission-
 
 
    (a) any information the CAA has which relates to matters within the scope of the investigation and which the Commission requests;
 
    (b) any information the CAA has which relates to matters within the scope of the investigation and which the CAA thinks it would be appropriate for it to give without a request;
 
    (c) any other help which the CAA is able to give in relation to matters within the scope of the investigation and which the Commission requests.
      (7) In carrying out the investigation concerned the Commission must take account of any information given under subsection (6).
 
      (8) In deciding under this section whether a matter operates, or may be expected to operate, against the public interest the Commission must have regard to the matters as respects which duties are imposed on the Secretary of State and the CAA by sections 1 and 2.
 
      (9) The provisions listed in subsection (10) apply to references under this section as if-
 
 
    (a) the functions of the Commission in relation to those references were functions under Parts IV, V, VI and VIII of the 1973 Act;
 
    (b) the expression "merger reference" included a reference under this section;
 
    (c) in section 70 of the 1973 Act references to the Secretary of State were to the CAA and the reference to three months were to six months.
      (10) The provisions are-
 
 
    (a) sections 70, 85 and 93B of the 1973 Act (time limit for report; witnesses and documents; and false or misleading information);
 
    (b) section 24 of the Competition Act 1980 (modification of provisions about Commission's general functions);
 
    (c) Part II of Schedule 7 to the Competition Act 1998 (Commission's general functions).
      (11) The 1973 Act is the Fair Trading Act 1973.
 
 
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