Paragraph 7

If any alterations or additions, either permanent or temporary, to railway property are reasonably necessary during the construction of a specified work or any protective works under paragraph 3(4) above, or during a period of 12 months after the commencement of regular revenue-earning train operations using the new railways comprised in any specified work, in consequence of the construction of a specified work, such alterations and additions may be carried out by the company and if the company gives the Council reasonable notice of its intentions to carry out such alterations and additions, the Council shall pay to the company the reasonable cost of those alterations or additions including, in respect of any such alterations and additions as are to be permanent, a capitalised sum representing the increase of the costs which may be expected to be reasonably incurred by the company in maintaining, working and, when necessary, renewing any such alterations or additions.

If the cost of maintaining, working or renewing railway property is reduced in consequence of any such alterations or additions referred to in paragraph 7(1) above a capitalised sum representing such saving shall be set off against any sum payable by the Council to the company under this paragraph.