Parliamentary portcullis Session 2010-11
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Other Private Bills before Parliament

Transport for London Bill
 

A

BILL

To confer further powers upon Transport for London; and for related purposes.

WHEREAS—

(1)It is expedient that the powers of Transport for London should be extended and amended as provided in this Act:
(2)It is expedient that provision be made in relation to the restriction under section 163 of the Greater London Authority Act 1999 (c.29) on Transport for London's powers to dispose of certain land:
(3)It is expedient that subsidiaries of Transport for London should have further powers as regards giving security for borrowing:
(4)It is expedient that Transport for London should have powers as regards forming, promoting and assisting and investing in limited partnerships:
(5)It is expedient that Transport for London should have further powers as regards the carrying out of activities specified pursuant to section 157 of the Greater London Authority Act 1999:
(6)It is expedient that further provision be made as regards risk mitigation:
(7)It is expedient that the other provisions contained in this Act should be enacted:
(8)The purposes of this Act cannot be effected without the authority of Parliament:
(9)In relation to the promotion of the Bill for this Act, Transport for London has complied with the requirements of section 167 of, and Schedule 13 to, the Greater London Authority Act 1999:

May it therefore please your Majesty that it may be enacted, and be it enacted, by the Queen's Most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1Citation and commencement
(1)This Act may be cited as the Transport for London Act 2010 and, except for section 5(1), (2) and (4) (power to give security for monies borrowed etc.) shall come into operation at the end of the period of two months beginning with the date on which it is passed.
(2)Section 5(1), (2) and (4) (power to give security for monies borrowed etc.) shall come into operation on the appointed day.

2Interpretation

In this Act—

"the 1999 Act" means the Greater London Authority Act 1999 (c.29);

"company" has the same meaning as in the 1999 Act;

"Mayor" means the Mayor of London;

"subsidiary" has the meaning given by section 1159 of the Companies Act 2006 (c.46); and

"TfL" means Transport for London.

3Appointed day
(1)In section 1(2) (citation and commencement) "the appointed day" means such day as may be fixed by a decision of TfL, subject to and in accordance with the provisions of this section.
(2)Different days may be fixed under this section for different provisions.
(3)No day fixed under this section may be before the end of the period of two months beginning with the date on which this Act is passed.
(4)TfL shall cause to be published in a newspaper circulating in London and in the London Gazette notice—
(a)of the taking of any such decision and of a day fixed thereby; and
(b)of the general effect of the provisions of this Act coming into operation as from that day,

and the day so fixed shall not be earlier than the expiration of two months from the publication of the notice or, if it is published on two days, from the later of those days.

(5)Either a photostatic or other reproduction certified by the officer appointed for that purpose by TfL to be a reproduction of a page or part of a page of any such newspaper or the London Gazette bearing the date of its publication and containing any such notice shall be evidence of the publication of the notice and of the date of publication.

4Restrictions on disposal of land
(1)Section 163 of the 1999 Act (restrictions on disposal of land) shall be amended as follows.
(2)In subsection (1) the words "Neither Transport for London nor" shall be deleted and the word "not" shall be inserted after "shall".
(3)Subsection (2) shall be deleted.

5Power to give security for monies borrowed etc.
(1)Notwistanding section 13(1) to (4) of the 2003 Act and section 164 of the 1999 Act, a TfL subsidiary may charge all or any of its property and all or any part of its present or future revenues, including without limitation by way of a floating charge over all or part of its assets or any class of its assets, as security for money—
(a)which the TfL subsidiary has borrowed,
(b)which the TfL subsidiary otherwise owes, or
(c)the repayment of which the TfL subsidiary has guaranteed,

on such terms as may be determined by the TfL subsidiary.

(2)A TfL subsidiary may not exercise its powers under subsection (1) except with the consent of the Mayor.
(3)Where—
(a)a company becomes a TfL subsidiary ("the company"); and
(b)immediately before the company becomes a TfL subsidiary there is in effect a charge on all or part of its property or revenues as security for money which it has borrowed or otherwise owes or the repayment of which it has guaranteed ("the existing borrowing"),

the charge may, according to its terms and subject to the consent of the Mayor, continue to have effect as regards the property or revenues of the company (whether such property was acquired or such revenues were generated before or after the company became a TfL subsidiary) as security for the existing borrowing notwithstanding section 164 of the 1999 Act.

(4)A charge created under subsection (1) by a TfL subsidiary over any property or revenue shall not take priority over any charge over that property or revenue which is in existence at the the time at which that charge has been created under subsection (1) ("the existing charge") without the consent of the person entitled to the benefit of the existing charge.
(5)In this section—

"the 2003 Act" means the Local Government Act 2003 (c.26);

"charge" includes a mortgage or any other encumbrance and related expressions shall be construed accordingly; and

"TfL subsidiary" means a subsidiary of TfL.

6Power for TfL to form and invest in limited partnerships
(1)The 1999 Act shall be amended as follows.
(2)In section 156 (general powers), after subsection (1), insert—
"(1A)Transport for London may—
(a)join with any other person in forming a limited partnership registered as such under the Limited Partnerships Act 1907 (c.24) by becoming a partner (whether limited or general within the meaning of that Act) of the limited partnership; and
(b)promote and assist, or join with any other person in promoting and assisting, a limited partnership so registered,

for the purpose of carrying on any activities which Transport for London has power to carry on."

(3)In subsection (5) of section 156 (general powers)—
(a)in paragraph (a), after "company" insert "or partnership" and after "subsection (1)" insert "or (1A)";
(b)after "that company", in both places where those words occur, insert ", or partnership"; and
(c)after "the company" insert "or partnership".
(4)In paragraph 25 of Schedule 11 (power of TfL to subscribe for or acquire any securities of a body corporate)—
(a)after "acquire" insert "an interest in, or"; and
(b)after "body corporate" insert "or a limited partnership".
(5)In paragraph 30 of Schedule 11 (power of TfL, by way of investment, to lend money or to subscribe for or acquire securities)—
(a)after "acquire any securities" insert "or interest"; and
(b)after "acquire securities" insert "or any interest".

7Specified activities
(1)In section 157(1) of the 1999 Act (power of the Secretary of State to specify activities which may not be carried out by TfL except through certain companies limited by shares) for the words from "a company which is limited" to the end substitute—
"(a)a limited liability partnership or a limited partnership of which a subsidiary of Transport for London (but not Transport for London) is a member or partner; or
(b)a company which is registered under the Companies Act 2006 and limited by shares or limited by guarantee and which is—
(i)a subsidiary of Transport for London; or
(ii)a company which Transport for London formed, or joined with others in forming, by virtue of section 156(1) above and which does not fall within sub-paragraph (i) above."
(2)In article 3 of the Transport for London (Specified Activities) Order 2000 (S.I. 2000/1548) (prohibition against carrying on specified activities through companies) for the words "a company limited by shares and registered under the Companies Act 2006" substitute "a limited liability partnership or a limited partnership of which a subsidiary of Transport for London (but not Transport for London) is a member or partner or through a company which is registered under the Companies Act 2006 and limited by shares or limited by guarantee".

8Arrangements for risk mitigation
(1)Section 49 of the Transport for London Act 2008 (c.i.) (power to make arrangements for risk mitigation) shall be amended as follows.
(2)In subsection (3)—
(a)in paragraph (c), leave out "any index reflecting";
(b)in paragraph (d), at end, leave out "or"; and
(c)after paragraph (e) insert—
"(f)any other economic or market related risk to which any TfL body is subject; or
(g)any index reflecting any of the matters referred to in paragraphs (a) to (f)."
(3)After subsection (9) insert—
"(9A)Subsection (9B) applies where a TfL body incurs an actual or prospective liability with respect to any pension scheme or arrangement.
(9B)Where this subsection applies-
(a)relevant longevity shall be taken to be an economic risk to which the TfL body is subject; and
(b)the power in subsection (2) may be exercised by a qualifying TfL subsidiary for the purpose of limiting the extent to which the TfL body will be affected by changes in relevant longevity or any of the other matters specified in subsection (3) notwithstanding that the exercise of the power may also limit the extent to which a person other than a TfL body will be affected by those changes;
and for the purposes of this subsection "relevant longevity" means the length of life (whether actual, average or projected) of members, or any category of members, of the pension scheme or arrangement."

9Minor amendment of the 1999 Act

In paragraph 14(1)(b) of Schedule 20 to the 1999 Act (transitional provisions) for "paragraph 7" substitute "paragraph 5".


 
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