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

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Reports on references.     12. - (1) In making a report on a reference under section 11 the Competition Commission-
 
 
    (a) must include definite conclusions on the questions contained in the reference and such an account of its reasons for the conclusions as in its opinion facilitates a proper understanding of the questions and of the conclusions;
 
    (b) if it concludes that any of the matters specified in the reference operate against the public interest or may be expected to do so, must specify the effects adverse to the public interest which the matters have or may be expected to have;
 
    (c) if it concludes that any adverse effects so specified could be remedied or prevented by modifications of the conditions of the licence, must specify modifications by which the effects could be remedied or prevented.
      (2) Section 82 of the Fair Trading Act 1973 (general provisions as to reports) applies to reports of the Commission on references under section 11 as it applies to reports of the Commission under that Act.
 
      (3) A report of the Commission on a reference under section 11 must be made to the CAA.
 
      (4) The CAA-
 
 
    (a) must on receiving such a report send a copy to the licence holder and a copy to the Secretary of State;
 
    (b) must, after the end of the specified period, publish the report in such manner as the CAA considers appropriate for bringing it to the attention of persons likely to be affected by it.
      (5) But if the Secretary of State thinks that the publication of any matter would be against the public interest or any person's commercial interests, he may before the end of the specified period give a direction to the CAA requiring it to exclude the matter from every copy of the report to be published as mentioned above.
 
      (6) The specified period is the period of 14 days starting with the day after the Secretary of State receives the copy under subsection (4).
 
Modification following report.     13. - (1) This section applies if a report of the Competition Commission on a reference under section 11-
 
 
    (a) includes conclusions to the effect that any of the matters specified in the reference operate against the public interest or may be expected to do so,
 
    (b) specifies effects adverse to the public interest which the matters have or may be expected to have,
 
    (c) includes conclusions to the effect that the effects could be remedied or prevented by modifications of the conditions of the licence, and
 
    (d) specifies modifications by which the effects could be remedied or prevented.
      (2) The CAA must suggest such modifications of the conditions of the licence as it thinks are needed to remedy or prevent the adverse effects specified in the report.
 
      (3) Before suggesting modifications the CAA must-
 
 
    (a) have regard to the modifications specified in the report,
 
    (b) publish a notice in such manner as the CAA thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the making of the modifications,
 
    (c) serve a copy of the notice on the licence holder, and
 
    (d) consider any representations made in accordance with the notice (and not withdrawn).
      (4) The notice must-
 
 
    (a) state that the CAA proposes to suggest 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 proposals.
      (5) If the CAA suggests modifications under this section it must-
 
 
    (a) give notice to the Commission setting out the modifications it suggests and the reasons for its suggestions, and
 
    (b) send to the Commission copies of any representations made in accordance with the notice published under subsection (3) (and not withdrawn).
Commission's power to give direction.     14. - (1) This section applies if the Competition Commission is given notice under section 13.
 
      (2) Within the permitted period the Commission may give a direction to the CAA-
 
 
    (a) not to make the modifications set out in the notice, or
 
    (b) not to make such of those modifications as are specified in the direction.
      (3) But the Commission may give a direction only if it thinks the modifications concerned are not appropriate to remedy or prevent the adverse effects specified in the Commission's report on the reference under section 11.
 
      (4) If the Commission gives a direction it must-
 
 
    (a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the direction, and
 
    (b) serve a copy of the notice on the licence holder.
      (5) The notice must set out-
 
 
    (a) the modifications set out in the notice given under section 13,
 
    (b) the direction, and
 
    (c) the reasons for giving the direction.
      (6) If the permitted period expires without a direction being given under subsection (2) the CAA must make the modifications set out in the notice given under section 13.
 
      (7) If within the permitted period a direction is given under subsection (2)(b) the CAA must make the modifications which are-
 
 
    (a) set out in the notice given under section 13, and
 
    (b) not specified in the direction.
      (8) 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.
 
      (9) The permitted period is the period of four weeks starting with the day the Commission is given notice under section 13.
 
      (10) But if within that period-
 
 
    (a) the Commission applies to the Secretary of State to extend it to six weeks, and
 
    (b) he directs that it is to be so extended,
       the permitted period is the period of six weeks starting with the day the Commission is given notice under section 13.
 
Position where Commission gives direction.     15. - (1) This section applies if the Competition Commission gives a direction under section 14(2).
 
      (2) If the direction is given under section 14(2)(a) the Commission may itself make such modifications of the conditions of the licence as it thinks are needed to remedy or prevent the adverse effects specified in the Commission's report on the reference under section 11.
 
      (3) If the direction is given under section 14(2)(b) the Commission may itself make such modifications of the conditions of the licence as it thinks are needed to remedy or prevent such of the adverse effects as-
 
 
    (a) are specified in the Commission's report on the reference under section 11, and
 
    (b) would not be remedied or prevented by the modifications set out in the notice under section 13 and not specified under section 14(2)(b).
      (4) Before making modifications under this section the Commission must-
 
 
    (a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates 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 and a copy on the CAA, and
 
    (c) consider any representations made in accordance with the notice (and not withdrawn).
      (5) The notice must-
 
 
    (a) state that the Commission 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.
      (6) As soon as practicable after making modifications under this section the Commission must send a copy of them to the licence holder, a copy to the Secretary of State and a copy to the CAA.
 
Modification by order under other enactments.     16. - (1) This section applies if-
 
 
    (a) the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the 1973 Act, and
 
    (b) the first or second requirement (set out below) is satisfied.
      (2) The first requirement is that-
 
 
    (a) the circumstances are as mentioned in section 56(1) of the 1973 Act (order on report on monopoly reference), and
 
    (b) the monopoly situation exists in relation to the provision of air traffic services.
      (3) The second requirement is that the circumstances are as mentioned in section 73(1) of the 1973 Act (order on report on merger reference) and-
 
 
    (a) at least one of the two or more enterprises which ceased to be distinct enterprises was engaged in the provision of air traffic services, or
 
    (b) at least one of the two or more enterprises which would cease to be distinct enterprises (in the application of section 73(1) by virtue of section 75(4)(e)) is engaged in the provision of air traffic services.
      (4) The order mentioned in subsection (1) may also provide for the modification of the conditions of a licence to such extent as the Secretary of State thinks necessary or expedient to give effect to or take account of any provision made by the order.
 
      (5) As soon as practicable after making modifications under this section the Secretary of State must send a copy of them to the licence holder and a copy to the CAA.
 
      (6) Expressions used in this section and the 1973 Act have the same meanings in this section as in that Act.
 
      (7) The 1973 Act is the Fair Trading Act 1973.
 
 
Enforcement
Orders for securing compliance.     17. - (1) If the CAA is satisfied that a licence holder is contravening or is likely to contravene a section 8 duty or a licence condition it must make a final order containing provision it thinks is needed to secure compliance with the duty or condition.
 
      (2) If the CAA is not so satisfied but it appears to it that a licence holder is contravening or is likely to contravene a section 8 duty or a licence condition and that a provisional order is needed, it must make a provisional order containing provision it thinks is needed to secure compliance with the duty or condition.
 
      (3) In deciding whether a provisional order is needed the CAA must have regard in particular to-
 
 
    (a) the extent to which any person is likely to sustain loss or damage as a result of anything likely to be done or omitted in contravention of the section 8 duty or licence condition unless a provisional order is made, and
 
    (b) the fact that the only remedy for a contravention of a section 8 duty or licence condition is under this section and section 21 (unless there is an act or omission which takes place in the course of the provision of air traffic services).
      (4) A final or provisional order must require the licence holder to do or not to do specified things or things of a specified description.
 
      (5) A final or provisional order-
 
 
    (a) takes effect at a time determined by or under the order;
 
    (b) must secure that that time is the earliest practicable time;
 
    (c) may be revoked at any time by the CAA.
      (6) A final order continues to have effect until such time (if any) as the CAA revokes it.
 
      (7) A provisional order ceases to have effect at the termination time, and that is the earlier of-
 
 
    (a) the end of the period (not exceeding three months) which is determined by or under the order and which starts when it takes effect;
 
    (b) such time (if any) as the CAA revokes it.
      (8) But if the CAA confirms a provisional order under subsection (9) before the termination time it continues to have effect until such time (if any) as the CAA revokes it.
 
      (9) The CAA must confirm a provisional order (with or without modifications) if-
 
 
    (a) it is satisfied that the licence holder is contravening or is likely to contravene a section 8 duty or a licence condition, and
 
    (b) it thinks its confirmation (with any modifications) is needed to secure compliance with the duty or condition.
      (10) In relation to a licence holder-
 
 
    (a) a section 8 duty is a duty imposed on the holder by section 8;
 
    (b) a licence condition is a condition of the licence concerned.
      (11) In sections 18 to 22 any reference to a section 8 duty or to a licence condition or to a final or provisional order must be construed in accordance with this section.
 
      (12) This section has effect subject to section 18.
 
 
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