Section 23 Designation of passenger services.F19I1

It shall be the duty of the F1appropriate designating authority from time to time to designate F2such services for the carriage of passengers by railway (other than services which are, by virtue of section 24 below, exempt from designation under this subsection) as it considers ought to be provided under F3sections 30 to 30C .

The appropriate designating authority may perform F4its duty under subsection (1) above by designating particular services or services of a class or description.

Where the Scottish Ministers designate Scotland-only services, they may also designate cross-border services which—

Nothing in this section requires the Secretary of State to designate a cross-border service already designated by the Scottish Ministers.

Before the Secretary of State or the Scottish Ministers designate a cross-border service he or they must consult the other.

Where the Welsh Ministers designate Wales-only services, they may also designate Welsh components of Welsh services which—

Nothing in this section requires the Secretary of State to designate a Welsh service so far as already designated by the Welsh Ministers.

A designation may be varied or revoked; but a variation or revocation of the designation of particular services, or services of a class or description, shall not affect any franchise agreement previously entered into with respect to those services or services of that class or description.

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In this Part—

• F11“the appropriate designating authority”—

  1. (a)

     in relation to Scotland-only services, means the Scottish Ministers; F12...

  2. (aa)

     F13in relation to Wales-only services, means the Welsh Ministers; and

  3. (b)

     in relation to all other services, means the Secretary of State;

• “the appropriate franchising authority”—

  1. (a)

     in relation to a Scottish franchise agreement, means the Scottish Ministers; F14...

  2. (aa)

     F15in relation to a Welsh franchise agreement to the extent that the franchised services under it are Wales-only services or Welsh components of Welsh services, means the Welsh Ministers;

  3. (ab)

     in relation to a Welsh franchise agreement to the extent that the franchised services under it are services other than Wales-only services or Welsh components of Welsh services, means the Secretary of State;

  4. (b)

     in relation to any other franchise agreement, means the Secretary of State;

• “franchise agreement” means an agreement F16to which the Secretary of State, the Scottish Ministers or the Welsh Ministers is or are party, under which another party F17which is not a public sector company (as defined in section 30C) undertakes either—

  1. (a)

     to provide, or

  2. (b)

     to secure that a wholly owned subsidiary of his provides,

  throughout the franchise term those services for the carriage of passengers by railway to which the agreement relates;

• “franchise operator”, in relation to any franchise agreement, means the person (whether the franchisee or, as the case may be, the wholly owned subsidiary of the franchisee) who is to provide the franchised services;

• “franchise period”, in relation to any franchise agreement, means the franchise term, except where the franchise agreement is terminated before the end of that term, in which case it means so much of that term as ends with that termination;

• “franchise term”, in relation to any franchise agreement, means the period specified in the franchise agreement as the period throughout which the franchisee is to provide, or secure that a wholly owned subsidiary of his provides, the franchised services, and includes any such extension of that period as is mentioned in section 29(3) F18or 30A(2)(b) below;

• “franchised services”, in relation to any franchise agreement, means the services for the carriage of passengers by railway which are to be provided under that franchise agreement;

• “franchisee” means—

  1. (a)

     in relation to a franchise agreement under which a party undertakes to secure that a wholly owned subsidiary of his provides the franchised services, the party so undertaking; or

  2. (b)

     in relation to any other franchise agreement, the person who is to provide the franchised services.

Any reference in this Part to the provision of services under a franchise agreement is a reference to the provision of those services by the franchise operator; and where the franchise operator is, or is to be, a wholly owned subsidiary of the franchisee, any reference to the provision of services by the franchisee under a franchise agreement shall accordingly be construed as a reference to his securing their provision by the franchise operator.