Transport Bill — Repeals and Revocations — 10 May 2000

(3) In section 167(4) of the Criminal Justice and Public Order Act 1994 (touting for hire car services: defence in case of public service vehicles), for "passengers for public service vehicles" substitute "passengers to be carried at separate fares by public service vehicles".'.-- [Mr. Robert Ainsworth.]

Brought up, read the First and Second time, and added to the Bill.

(2) In sections 26 (arrangements for patrolling school crossings) and 28 (stopping of vehicles at school crossings) for the word "children", in each place where it occurs, substitute the word "pedestrians".'.-- [Mr. Michael J. Foster.]

Brought up, read the First and Second time, and added to the Bill.

Functions to which Schedule applies

1.--(1) The functions to which this Schedule applies are those of--

(a) making and varying quality partnership schemes,

(b) making and varying ticketing schemes, and

(c) inviting and accepting tenders under section 89 or 91 of the Transport Act 1985 (subsidised services).

(2) For the purposes of this Schedule an authority proposes (or authorities propose) to exercise a function to which this Schedule applies--

(a) in the case of the function of making or varying a quality partnership scheme, once notice of a proposal to make or vary it has been given under section 98(1),

(b) in the case of the function of making or varying a ticketing scheme, once notice of a proposal to make or vary it has been given under section 117(1), and

(c) in the case of the function of inviting or accepting tenders under section 89 or 91 of the Transport Act 1985, once it is proposed to invite tenders under section 89(2) or 91(3) of that Act or to accept or not to accept a tender under section 89 of that Act.

Competition test

2.--(1) For the purposes of this Schedule the exercise or proposed exercise of a function to which this Schedule applies meets the competition test unless it--

(a) has or is likely to have a significantly adverse effect on competition, and

(b) is not justified by sub-paragraph (2).

(2) The exercise or proposed exercise of a function is justified if--

(a) it is with a view to achieving one or more of the purposes specified in sub-paragraph (3), and

(b) its effect on competition is or is likely to be proportionate to the achievement of that purpose or any of those purposes.

(3) The purposes referred to in sub-paragraph (2) are--

(a) securing improvements in the quality of vehicles or facilities used for or in connection with the provision of local services,

(b) securing other improvements in local services of substantial benefit to users of local services, and

(c) reducing or limiting traffic congestion, noise or air pollution.

Applications to Director for decision

3.--(1) An application may be made to the Director General of Fair Trading (in this Schedule referred to as "the Director") for him to decide whether the exercise or proposed exercise of a function to which this Schedule applies meets the competition test.

(2) An application may be made under this paragraph by--

(a) the authority or authorities by whom the function has been exercised or is proposed to be exercised, or

(b) any operator of local services who is, or is likely to be, affected by the exercise of the function.

4.--(1) If an application is made under paragraph 3 by the authority or authorities by whom a function has been exercised or is proposed to be exercised, it or they must inform any operators of local services who, in the opinion of the authority or authorities, are or are likely to be affected by the exercise of the function that the application has been made.

(2) If an application is made under paragraph 3 by an operator of local services, he must inform the authority or authorities by whom the function has been exercised or is proposed to be exercised that the application has been made.

(3) The Director must arrange for an application made under paragraph 3 to be published in such a way as he thinks most suitable for bringing it to the attention of those likely to be affected by it, unless he is satisfied that it will be sufficient for him to seek information from one or more particular persons.

(4) In determining an application made under paragraph 3, the Director must take into account any representations made to him about the application.

Investigations by Director

5. If at any time the Director considers that the exercise or proposed exercise of a function to which this Schedule applies may not meet the competition test, he may conduct an investigation.

6.--(1) For the purposes of an investigation under paragraph 5 the Director may require any person--

(a) to produce to him or to a person appointed by him, at a specified time and place, any specified document, or

(b) to provide him or such a person, at such a time and place, any specified information,

which he considers relates to any matter relevant to the investigation.

(2) The power conferred by sub-paragraph (1) is to be exercised by a notice in writing indicating the subject matter and purpose of the investigation; and in this paragraph "specified" means--

(a) specified, or described, in the notice, or

(b) falling within a category which is specified, or described, in the notice.

(3) Information required to be provided sub-paragraph (1) shall be provided in the specified manner and form.

(4) The power conferred by sub-paragraph (1) to require a person to produce a document includes power--

(a) to require him to provide an explanation of the document, or

(b) if the document is not produced, to require him to state, to the best of his knowledge and belief, where it is.

(5) In this paragraph "information" includes estimates and forecasts.

7.--(1) If a person refuses or fails to comply with a notice under paragraph 6, the Director may certify that fact in writing to the High Court which may enquire into the case.

(2) If after hearing--

(a) any witness who may be produced against or on behalf of the person, and

(b) any statement which may be offered in defence,

the High Court is satisfied that the person did not have a reasonable excuse for refusing or failing to comply with the notice, the High Court may punish him as if he had been guilty of contempt of court.

8.--(1) A person shall not be required under paragraph 6 to produce or disclose a privileged communication.

(2) In sub-paragraph (1) "privileged communication" means a communication--

(a) between a professional legal adviser and his client, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings,

which in proceedings in the High Court would be protected from disclosure on grounds of legal professional privilege.

9.--(1) No information which--

(a) has been obtained under paragraph 6, and

(b) relates to the affairs of any individual or to any particular business,

is to be disclosed during the lifetime of that individual or while that business continues to be carried on, unless the condition mentioned in sub-paragraph (2) is satisfied.

(2) The condition is that consent to the disclosure has been obtained from--

(a) the person from whom the information was obtained under paragraph 6, and

(b) if different, the individual to whose affairs the information relates or the person for the time being carrying on the business to which the information relates.

(3) Sub-paragraph (1) does not apply to a disclosure of information--

(a) made for the purpose of facilitating the performance of any function of the Director, a traffic commissioner or the Rail Regulator,

(b) made for the purpose of facilitating the performance of any function of the European Commission in respect of Community law about competition,

(c) made for the purpose of criminal proceedings in any part of the United Kingdom or in connection with the investigation of a criminal offence triable in any part of the United Kingdom, or

(d) made in compliance with the order of a court or tribunal.

(4) If information is disclosed to the public in circumstances in which the disclosure does not contravene sub-paragraph (1), that sub-paragraph does not prevent its further disclosure by any person.

(5) A person who contravenes this paragraph is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

10. Before the Director, as the result of an investigation under paragraph 5, makes a decision that the exercise or proposed exercise of a function does not meet the competition test, he must--

(a) give written notice to the person or persons likely to be affected by the proposed decision, and

(b) give that person or those persons an opportunity to make representations.

Decisions

11. When the Director makes a decision--

(a) on an application under paragraph 3, or

(b) after an investigation under paragraph 5,

he must publish his decision, together with his reasons for making it.

12. If the Director has determined an application under paragraph 3 by making a decision that the exercise or proposed exercise of a function to which this Schedule applies meets the competition test, he is to take no further action under this Schedule with respect to it unless--

(a) he has reasonable grounds for believing that there has been a material change of circumstance since he made his decision, or

(b) he has a reasonable suspicion that the information on which he based his decision was incomplete, false or misleading in a material particular.

Enforcement of decisions

13.--(1) If the Director has made a decision that the exercise or proposed exercise of a function to which this Schedule applies does not meet the competition test, he may give to the authority or authorities by which it was or was to be exercised such directions as he considers appropriate.

(2) A direction under sub-paragraph (1) may (in particular)--

(a) in the case of a proposal to exercise a function, include provision prohibiting the exercise of the function in the manner proposed,

(b) in the case of the exercise of the function of making or varying a quality partnership scheme or a ticketing scheme, include provision requiring the variation or revocation of the scheme,

(c) in the case of the exercise of the function of inviting tenders under section 89(2) or 91(3) of the Transport Act 1985, include provision requiring the variation or withdrawal of the invitation, and

(d) in the case of the exercise of the function of accepting or not accepting a tender under section 89 or 91 of that Act, include provision requiring the variation or termination of any agreement entered into by accepting the tender or requiring the acceptance of any tender.

(3) A direction under sub-paragraph (1) must be given in writing.

(4) If an authority fails, without reasonable excuse, to comply with a direction under sub-paragraph (1), the Director may apply to the High Court for an order requiring the authority to comply with the direction within a time specified in the order.

(5) An order under sub-paragraph (4) may provide for all of the costs of, or incidental to, the application for the order to be borne by the authority.

False or misleading information

14.--(1) If information is provided by a person to the Director in connection with his functions under this Schedule, the person is guilty of an offence if--

(a) the information is false or misleading in a material particular, and

(b) the person knows that it is or is reckless as to whether it is.

(2) If a person--

(a) provides any information to another person, knowing the information to be false or misleading in a material particular, or

(b) recklessly provides to another person any information which is false or misleading in a material particular,

knowing that the information is to be used for the purpose of providing information to the Director in connection with his functions under this Schedule, the person is guilty of an offence.

(3) A person guilty of an offence under this paragraph is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Defamation

15. For the purposes of the law relating to defamation, absolute privilege attaches to any decision made or notice given by the Director in the exercise of any of his functions under this Schedule.

Fees

16.--(1) The Director may charge fees in connection with the exercise by him of any of his functions under this Schedule.

(2) Different fees may be charged in connection with different functions and in different circumstances.

(3) An application under paragraph 3 is not to be regarded as duly made unless any appropriate fee is paid.'.-- [Mr. Robert Ainsworth.]

Brought up, read the First and Second time, and added to the Bill.

The Schedule to be inserted after Schedule 4 to the Railways Act 1993 is as follows--

(3) The review notice shall be given--

(a) by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the proposed relevant changes; and

(b) by serving a copy on the persons specified in sub-paragraph (4) below.

(4) The persons referred to in sub-paragraph (3)(b) above are--

(a) the facility owner, or installation owner, who is a party to the access agreement;

(b) any other person who has an estate or interest in, or right over, the railway facility or network installation to which the access agreement relates and who the Regulator considers ought to be given a copy; and

(c) the beneficiary.

(5) In this Schedule "the beneficiary"--

(a) in relation to an access contract, has the meaning given by section 17(6) of this Act; and

(b) in relation to an installation access contract, has the meaning given by section 19(10) of this Act.

Notice of agreement

5.--(1) If no objections are duly made by a person within paragraph 4(4)(a) or (b) above (or any that are so made are withdrawn), the Regulator shall give notice (a "notice of agreement") stating that fact.

(2) The notice of agreement shall be given--

(a) by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the proposed relevant changes; and

(b) by serving a copy on the beneficiary.

Termination notice

6.--(1) After a copy of a notice of agreement is served on the beneficiary, he may give notice (a "termination notice") terminating the access agreement.

(2) The termination notice shall specify the date on which the access agreement is to terminate.

(3) The termination notice shall be given by serving a copy on--

(a) the facility owner or installation owner;

(b) any other person who has an estate or interest in, or right over, the railway facility or network installation and who received a copy of the review notice; and

(c) the Regulator.

(4) The date specified by the termination notice as that on which the access agreement is to terminate shall be neither--

(a) less than six months, nor

(b) more than one year,

after the copy of the termination notice is served on the facility owner or installation owner.

(5) The termination notice may not be given after the end of the period of 28 days beginning with the day on which the copy of the notice of agreement is served on the beneficiary.

Review implementation notice

7.--(1) After a copy of a notice of agreement is served on the beneficiary and the time within which a termination notice may be given by him has expired--

(a) if he has not given a termination notice (or has withdrawn any notice which he has given), the Regulator shall (unless he acts under paragraph 8(2) below) give a review implementation notice; or

(b) if he has given (and not withdrawn) a termination notice, the Regulator may give such a notice.

(2) A review implementation notice is a notice stating that the Regulator's conclusions on the access charges review are to be implemented as proposed in the review notice.

(3) The review implementation notice shall--

(a) specify the relevant changes which the Regulator is making; and

(b) state, in relation to each of the relevant changes, the date on which it comes into operation.

(4) The review implementation notice shall be given--

(a) by publishing it in such manner as the Regulator considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the relevant changes; and

(b) by serving a copy on the persons on whom a copy of the review notice was served, the Authority and the Health and Safety Executive.

New review notice or Competition Commission reference

8.--(1) This paragraph applies if--

(a) objections are duly made by a person within paragraph 4(4)(a) or (b) above (and not withdrawn); or

(b) although no objections are duly made by a person within paragraph 4(4)(a) or (b) above (or any that are so made are withdrawn), relevant objections are duly made (and not withdrawn) in relation to a similar review notice relating to another access agreement.

(2) The Regulator may--

(a) give a new review notice under paragraph 4 above; or

(b) make a reference to the Competition Commission under paragraph 9 below.

(3) For the purposes of sub-paragraph (1) above--

(a) "relevant objections", in relation to another access agreement, means objections by a person who is within paragraph 4(4)(a) or (b) above in relation to that other access agreement; and

(b) one review notice is similar to another if they make provision which, in the opinion of the Regulator, is to broadly the same effect.

(4) Before acting under sub-paragraph (1) above, the Regulator shall consider the objections referred to in that sub-paragraph.

(5) If the Regulator gives a new review notice under paragraph 4 above by virtue of sub-paragraph (2)(a) above, the references in that paragraph and paragraph 7(2) above to his conclusions on the access charges review shall be read in relation to the new notice as references to those conclusions as modified since the previous review notice (in particular as the result of any objections or representations made in relation to it).

Reference to Competition Commission

9.--(1) A reference to the Competition Commission under this paragraph shall be so framed as to require them to investigate and report on the questions specified in sub-paragraph (2) below.

(2) Those questions are--

(a) whether the matters considered on the access charges review which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by the making of relevant changes.

(3) The Regulator may, at any time, by notice given to the Competition Commission vary a reference under this paragraph--

(a) by adding to the matters specified in the reference; or

(b) by excluding from the reference some or all of the matters so specified.

(4) On receipt of such a notice the Competition Commission shall give effect to the variation.

(5) The Regulator may specify in a reference under this paragraph, or a variation of such a reference, for the purpose of assisting the Competition Commission in carrying out the investigation on the reference--

(a) any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b) any relevant changes by which, in his opinion, those effects could be remedied or prevented.

(6) As soon as practicable after making a reference under this paragraph, or a variation of such a reference, the Regulator--

(a) shall serve a copy of the reference or variation on the persons on whom a copy of the review notice was served; and

(b) shall publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

(7) For the purpose of assisting the Competition Commission in carrying out an investigation on a reference under this paragraph, the Regulator shall give to the Competition Commission any information in his possession which relates to matters falling within the scope of the investigation and--

(a) is requested by the Competition Commission for that purpose; or

(b) is information which, in his opinion, it would be appropriate for that purpose to give to the Competition Commission without any such request;

and any other assistance which the Competition Commission may require, and which it is within his power to give, in relation to any such matters.

(8) For the purpose of carrying out such an investigation, the Competition Commission shall take account of any information given to them for that purpose under sub-paragraph (7) above.

(9) In determining for the purposes of this paragraph whether any particular matter operates, or may be expected to operate, against the public interest, the Competition Commission shall have regard to the matters as respects which duties are imposed on the Regulator by section 4 of this Act.

10.--(1) The provisions mentioned in sub-paragraph (2) below are to apply in relation to references under paragraph 9 above as if--

(a) the functions of the Competition Commission in relation to those references were functions under the 1973 Act;

(b) the expression "merger reference" included a reference under that paragraph; and

(c) in section 70 of the 1973 Act references to the Secretary of State were references to the Regulator and the reference to three months were a reference to six months.

(2) The provisions are--

(a) sections 70 (time limit for report on merger), 85 (attendance of witnesses and production of documents) and 93B (false or misleading information) of the 1973 Act;

(b) Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission's general functions); and

(c) section 24 of the 1980 Act (modification of provisions about performance of such functions).

Report on reference

11.--(1) In making a report on a reference under paragraph 9 above, the Competition Commission shall include in the report--

(a) definite conclusions on the questions comprised in the reference; and

(b) such an account of their reasons for those conclusions as in their opinion is expedient for facilitating a proper understanding of those questions and of their conclusions.

(2) Where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, they shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have.

(3) Where they conclude that any adverse effects so specified could be remedied or prevented by the making of relevant changes, they shall in the report--

(a) specify the relevant changes by which those effects could be remedied or prevented; and

(b) state, in relation to each of the relevant changes, the date on which it should come into operation.

(4) A date stated in the report as that on which a relevant change should come into operation may be a date before the report is made, provided that it is not before the earliest date specified in the review notice for the coming into operation of a relevant change proposed in it.

(5) Section 82 of the 1973 Act (general provisions as to reports) shall apply in relation to reports of the Competition Commission on references under paragraph 9 above as it applies to reports of the Competition Commission under that Act.

(6) A report of the Competition Commission on a reference under paragraph 9 above shall be made to the Regulator.

(7) The Regulator shall, on receiving such a report, send a copy of it to the Secretary of State and the Authority.

(8) Not less than 14 days after that copy is received by the Secretary of State, the Regulator shall send a copy to each of the persons on whom a copy of the review notice was served.

(9) Not less than 24 hours after complying with sub-paragraph (8) above, the Regulator shall publish the report in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

(10) If it appears to the Secretary of State that the publication of any matter in the report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days after he receives his copy of the report, direct the Regulator to exclude that matter from--

(a) every copy of the report sent under sub-paragraph (8) above, and

(b) the version of the report published under sub-paragraph (9) above.

Changes following report

12.--(1) Where a report of the Competition Commission on a reference under paragraph 9 above--

(a) includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest,

(b) specifies effects adverse to the public interest which those matters have or may be expected to have,

(c) includes conclusions to the effect that those effects could be remedied or prevented by the making of relevant changes, and

(d) specifies relevant changes by which those effects could be remedied or prevented,

the Regulator shall, subject to the following provisions of this paragraph and paragraph 13 below, make such relevant changes as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

(2) Before making relevant changes under this paragraph, the Regulator shall have regard to the relevant changes specified in the report.

(3) Before making relevant changes under this paragraph, the Regulator shall give notice--

(a) stating that he proposes to make the relevant changes and setting out their effect,

(b) stating the reasons why he proposes to make the relevant changes,

(c) stating, in relation to each of the proposed relevant changes, the date on which he proposes that it should come into operation, and

(d) specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed relevant changes may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A notice under sub-paragraph (3) above shall be given--

(a) by publishing the notice in such manner as the Regulator considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the relevant changes; and

(b) by serving a copy of the notice on the persons on whom a copy of the review notice was served.

(5) Where (after considering any representations or objections which are duly made and not withdrawn) the Regulator proposes to make relevant changes under this paragraph, he shall give notice to the Competition Commission--

(a) setting out the relevant changes he proposes to make;

(b) stating the reasons why he proposes to make the relevant changes; and

(c) stating, in relation to each of the proposed relevant changes, the date on which he proposes that it should come into operation.

(6) The Regulator shall include with the notice under sub-paragraph (5) above a copy of any representations and objections which have been considered.

(7) A date stated in a notice under sub-paragraph (3) or (5) above as that on which a relevant change should come into operation may be a date before the notice is given, provided that it is not before the earliest date specified in the review notice for the coming into operation of a relevant change proposed in it.

(8) If the period within which a direction may be given by the Competition Commission under paragraph 13 below expires without such a direction being given, the Regulator shall make the relevant changes set out in the notice under sub-paragraph (5) above.

(9) If a direction is given by the Competition Commission under paragraph 13(1)(b) below, the Regulator shall make such of those relevant changes as are not specified in the direction.

(10) As soon as practicable after making relevant changes under this paragraph, the Regulator shall send a copy of the relevant changes to the Authority and the Health and Safety Executive.

Competition Commission's power to veto changes

13.--(1) The Competition Commission may, within the period of four weeks beginning with the day on which they are given notice under paragraph 12(5) above, give a direction to the Regulator--

(a) not to make the relevant changes set out in the notice; or

(b) not to make such of those relevant changes as are specified in the direction.

(2) The Secretary of State may, if an application is made to him by the Competition Commission within that period of four weeks, extend the period within which a direction may be given under this paragraph to one of six weeks beginning with the day on which the Competition Commission are given notice under paragraph 12(5) above.

(3) The Competition Commission may give a direction under this paragraph only if the relevant changes to which it relates do not appear to them requisite for the purpose of remedying or preventing the adverse effects specified in their report on the reference under paragraph 9 above.

(4) If the Competition Commission give a direction under this paragraph, they shall give notice--

(a) setting out the relevant changes contained in the notice given under paragraph 12(5) above;

(b) setting out the direction; and

(c) stating the reasons why they are giving the direction.

(5) A notice under sub-paragraph (4) above shall be given--

(a) by publishing the notice in such manner as the Competition Commission consider appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the direction; and

(b) by serving a copy of the notice on the persons on whom a copy of the review notice was served.

Making of changes by Competition Commission

14.--(1) If the Competition Commission give a direction under paragraph 13 above, they may themselves make such relevant changes as appear to them requisite for the purpose of remedying or preventing--

(a) the adverse effects specified in their report on the reference under paragraph 9 above; or

(b) such of those adverse effects as would not be remedied or prevented by the relevant changes made by the Regulator under paragraph 12(8) above.

(2) In exercising the function conferred by sub-paragraph (1) above, the Competition Commission shall have regard to the matters as respects which duties are imposed on the Regulator by section 4 of this Act.

(3) Before making relevant changes under this paragraph, the Competition Commission shall give notice--

(a) stating that they propose to make the relevant changes and setting out their effect,

(b) stating the reasons why they propose to make the relevant changes,

(c) stating, in relation to each of the proposed relevant changes, the date on which they propose that it should come into operation, and

(d) specifying the period (not being less than 28 days from the date of publication of the notice) within which representations or objections may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(4) A date stated in a notice under sub-paragraph (3) above as that on which a relevant change should come into operation may be a date before the notice is given, provided that it is not before the earliest date specified in the review notice for the coming into operation of a relevant change proposed in it.

(5) A notice under sub-paragraph (3) above shall be given--

(a) by publishing the notice in such manner as the Competition Commission consider appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by the making of the relevant changes; and

(b) by serving a copy of the notice on the persons on whom a copy of the review notice was served.

(5) As soon as practicable after making any relevant changes under this paragraph, the Competition Commission shall send a copy of those relevant changes to the Regulator, the Authority and the Health and Safety Executive.

Paragraphs 13 and 14: supplementary

15.--(1) The provisions mentioned in sub-paragraph (2) below are to apply in relation to the exercise by the Competition Commission of their functions under paragraphs 13 and 14 above as if--

(a) in section 82(1) and (2) of the 1973 Act references to a report of the Competition Commission under that Act were references to a notice under paragraph 13(4) or 14(3) above;

(b) in section 85 of that Act references to an investigation on a reference made to the Competition Commission were references to an investigation by the Competition Commission for the purposes of the exercise of their functions under those paragraphs; and

(c) in section 93B of that Act references to the functions of the Competition Commission under that Act were references to their functions under those paragraphs.

(2) The provisions are--

(a) sections 82(1) and (2) (general provisions as to reports), 85 (attendance of witnesses and production of documents) and 93B (false or misleading information) of the 1973 Act;

(b) Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission's general functions); and

(c) section 24 of the 1980 Act (modification of provisions about performance of such functions).

(3) For the purpose of assisting the Competition Commission in exercising their functions under paragraphs 13 and 14 above, the Regulator shall give to the Competition Commission any information in his possession which relates to matters relevant to the exercise of those functions and--

(a) is requested by the Competition Commission for that purpose; or

(b) is information which, in his opinion, it would be appropriate for that purpose to give to the Competition Commission without any such request;

and any other assistance which the Competition Commission may require, and which it is within his power to give, in relation to any such matters.

(4) For the purpose of exercising those functions, the Competition Commission shall take account of any information given to them for that purpose under sub-paragraph (3) above.

Termination notice in response to proposals after reference

16.--(1) Where a notice is served on the beneficiary under paragraph 12(3) or 14(3) above, he may give notice (a "post-reference termination notice") terminating the access agreement.

(2) The post-reference termination notice shall specify the date on which the access agreement is to terminate.

(3) The post-reference termination notice shall be given by serving a copy on--

(a) the facility owner or installation owner;

(b) any other person who has an estate or interest in, or right over, the railway facility or network installation and who received a copy of the review notice; and

(c) the Regulator.

(4) The date specified by the post-reference termination notice as that on which the access agreement is to terminate shall be neither--

(a) less than six months, nor

(b) more than one year,

after the copy of the post-reference termination notice is served on the facility owner or installation owner.

(5) The post-reference termination notice may not be given after the end of the period of 28 days beginning with the day on which the copy of the notice under paragraph 12(3) or 14(3) above is served on the beneficiary.".'. -- [Mr. Robert Ainsworth.]

Brought up, read the First and Second time, and added to the Bill.

Part I

Interpretation

1.--(1) In this Schedule--

Part II

Transfers to SRA from Franchising Director, Secretary of State and Regulator

Interpretation

2. In this Part of this Schedule--

"relevant transfer" means a transfer of property, rights or liabilities by virtue of--

(a) section 192,

(b) a scheme under paragraph 1 of Schedule 14, or

(c) a scheme under paragraph 31 of Schedule 16,

"transferee", in relation to a relevant transfer, means the Authority, and

"transferor", in relation to a relevant transfer, means the person from whom the property, rights or liabilities are transferred.

Chargeable gains: general

3. For the purposes of the 1992 Act a disposal by virtue of provision made under paragraph 34(a) of Schedule 16 is to be taken to be for a consideration such that no gain or loss accrues to the person making the disposal.

Chargeable gains: disposal of debts

4.--(1) Sub-paragraph (2) applies if in the case of a relevant transfer--

(a) a debt owed to the transferor is transferred to the transferee, and

(b) the transferor would, apart from this paragraph, be the original creditor in relation to that debt for the purposes of section 251 of the 1992 Act (disposal of debts).

(2) The 1992 Act is to have effect as if the transferee (and not the transferor) were the original creditor for those purposes.

Capital allowances for machinery and plant

5.--(1) This paragraph applies in relation to property if--

(a) the property is plant or machinery to which a relevant transfer relates,

(b) the property would be treated for the purposes of the Capital Allowances Acts as disposed of by the transferor to the transferee on the transfer taking effect, and

(c) the relevant order or scheme contains provision for the transferee to be taken for the purposes of those Acts to have incurred capital expenditure of an amount specified in or determined in accordance with the order or scheme on the provision of the property.

(2) For the purposes of those Acts--

(a) the transferee is to be taken to have incurred capital expenditure of that amount on the provision of the property for the purposes for which it is used by the transferee on and after the taking effect of the transfer,

(b) the property is to be taken as belonging to the transferee in consequence of the transferee having incurred that expenditure, and

(c) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) In sub-paragraph (1)(c) "the relevant order or scheme" means--

(a) in the case of a transfer by virtue of section 192, an order made by the Secretary of State by statutory instrument, or

(b) in the case of a transfer by virtue of a scheme under paragraph 1 of Schedule 14 or paragraph 31 of Schedule 16, the scheme concerned.

(4) A provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision--

(a) for a determination to be made by the Secretary of State in a manner described in the order or scheme,

(b) for a determination to be made by reference to factors so described or to the opinion of a person so described, and

(c) for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(5) The Treasury's consent is required for the making or modification of a determination under a provision mentioned in sub-paragraph (1)(c).

(6) The transferee's consent is also required for such a modification after the relevant transfer takes effect.

(7) If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(c) all necessary adjustments--

(a) must be made by making assessments or by repayment or discharge of tax, and

(b) must be made despite any limitation on the time within which assessments may be made.

Capital allowances for machinery and plant: connected persons

6. For the purposes of Part II of the 1990 Act references in that Part to a transaction (however described) between connected persons within the meaning of section 839 of the 1988 Act are not to include references to a relevant transfer.

Loan relationships

7.--(1) Sub-paragraph (2) applies if as a result of a relevant transfer the transferee replaces, or (if the transferor had been a company) would have replaced, the transferor as a party to a loan relationship.

(2) Chapter II of Part IV of the Finance Act 1996 is to have effect in relation to any period beginning with the time the relevant transfer takes effect as if--

(a) the transferee had been a party to the loan relationship at the time the transferor became, or (if the transferor had been a company) would have become, a party to the loan relationship and at all times since that time, and

(b) the loan relationship to which the transferee is a party after the time the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Chapter II of Part IV of the Finance Act 1996 have the same meanings in this paragraph as in that Chapter.

Part III

Transfers from BR to SRA

Interpretation

8. In this Part of this Schedule--

"relevant transfer" means a transfer of property, rights or liabilities by virtue of--

(a) paragraph 11 of Schedule 17, or

(b) a scheme under paragraph 1 of Schedule 18,

"transferee", in relation to a relevant transfer, means the Authority, and

"transferor", in relation to a relevant transfer, means the Board.

Chargeable gains: general

9. For the purposes of the 1992 Act a disposal--

(a) constituted by a relevant transfer, or

(b) by virtue of provision made under paragraph 4 of Schedule 18,

is to be taken (in relation to the person to whom the disposal is made as well as the person making the disposal) to be for a consideration such that no gain or loss accrues to the person making the disposal.

Chargeable gains: restriction of losses

10.--(1) If there has been a disposal of an asset--

(a) constituted by a relevant transfer, or

(b) by virtue of provision made under paragraph 4 of Schedule 18,

subsection (8) of section 41 of the 1992 Act (which applies that section to cases where assets have been acquired without gain or loss) is to have effect as if the asset had been disposed of and acquired in circumstances mentioned in that subsection.

(2) This paragraph is not to prejudice paragraph 9.

Chargeable gains: groups

11.--(1) Sub-paragraph (2) applies if a company ("the degrouped company")--

(a) acquired an asset from another company at any time when both were members of the same group of companies ("the old group"), and

(b) ceases by virtue of a relevant transfer to be a member of the old group.

(2) Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) If sub-paragraph (2) applies to an asset, that section is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies ("the new group"), otherwise than by virtue of a qualifying transfer, as if the degrouped company and the company from which it acquired the asset had been members of the new group at the time of acquisition.

(4) If, disregarding any preparatory transactions, a company would be regarded for the purposes of section 179 of the 1992 Act (and, accordingly, of this paragraph) as ceasing to be a member of a group of companies by virtue of a qualifying transfer, it is to be regarded for those purposes as so doing by virtue of the qualifying transfer and not by virtue of any preparatory transactions.

(5) In this paragraph "preparatory transaction" means anything done under or by virtue of this Part of this Act for the purpose of initiating, advancing or facilitating the qualifying transfer in question.

(6) Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Chargeable gains: disposal of debts

12.--(1) Sub-paragraph (2) applies if in the case of a relevant transfer--

(a) a debt owed to the transferor is transferred to the transferee, and

(b) the transferor would, apart from this paragraph, be the original creditor in relation to that debt for the purposes of section 251 of the 1992 Act (disposal of debts).

(2) The 1992 Act is to have effect as if the transferee (and not the transferor) were the original creditor for those purposes.

Continuity in relation to capital allowances etc where trade transferred

13.--(1) If, apart from this paragraph--

(a) the transferor would be treated for the purposes of the Corporation Tax Acts as having ceased, by virtue of a relevant transfer taking effect, to carry on any trade, and

(b) the transferee would be treated as having begun, on that transfer taking effect, to carry it on,

the trade is not to be treated as permanently discontinued, nor a new trade as set up, for the purposes of the allowances and charges provided for by the Capital Allowances Acts, but sub-paragraphs (2) to (4) are to apply.

(2) Subject to sub-paragraphs (3) and (4), in a case falling within sub-paragraph (1)--

(a) there are to be made to or on the transferee in accordance with the Capital Allowances Acts all such allowances and charges as would, if the transferor had continued to carry on the trade, have fallen to be made to or on the transferor; and

(b) the amount of any such allowance or charge is to be computed as if--

(i) the transferee had been carrying on the trade since the transferor began to do so; and

(ii) everything done to or by the transferor had been done to or by the transferee (but so that the relevant transfer itself, so far as it relates to any assets in use for the purpose of the trade, shall not be treated as giving rise to any such allowance or charge).

(3) For the purposes of the Corporation Tax Acts, only such amounts (if any) as may be specified in or determined in accordance with an order made by the Secretary of State by statutory instrument are to be allocated to the transferee in respect of expenditure by

reference to which capital allowances may be made by virtue of sub-paragraph (2) in relation to anything to which the transfer relates.

(4) Sub-paragraph (2) is to affect the amounts falling to be taken into account in relation to the transferor as expenditure by reference to which capital allowances may be made only so far as necessary to give effect to a reduction of any such amount by a sum equal to so much of that amount as is allocated to the transferee as mentioned in sub-paragraph (3).

(5) An order under sub-paragraph (3) may include provision--

(a) for a determination to be made by the Secretary of State in a manner described in the order,

(b) for a determination to be made by reference to factors so described or to the opinion of a person so described, and

(c) for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(6) The Treasury's consent is required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (5).

(7) The transferee's consent is also required for such a modification after the relevant transfer takes effect.

(8) In determining whether sub-paragraph (1) has effect in relation to a relevant transfer in a case where--

(a) the transferor continues to carry on any trade or part of a trade after the transfer takes effect, or

(b) the transferee was carrying on any trade before the transfer takes effect,

the trade or part of a trade which is continued, or was being carried on, shall for the purposes of that sub-paragraph be treated in relation to any trade or part of a trade which is transferred by virtue of the transfer as a separate trade and shall accordingly be disregarded.

(9) If there is a determination or a modification of a determination for any purposes of this paragraph, all necessary adjustments--

(a) must be made by making assessments or by repayment or discharge of tax, and

(b) must be made despite any limitation on the time within which assessments may be made.

Capital allowances for machinery and plant

14.--(1) This paragraph applies in relation to property if--

(a) the property is plant or machinery to which a relevant transfer relates,

(b) paragraph 13 does not apply in relation to the transfer of the property to the transferee,

(c) the property would be treated for the purposes of the Capital Allowances Acts as disposed of by the transferor to the transferee on the transfer taking effect, and

(d) the scheme concerned contains provision for the disposal value of the property to be taken for the purposes of those Acts to be of an amount specified in or determined in accordance with the scheme.

(2) For the purposes of those Acts--

(a) the provision mentioned in sub-paragraph (1)(d) is to have effect (instead of section 26(1) or 59 of the 1990 Act) for determining an amount as the disposal value of the property or the price at which a fixture is to be treated as sold,

(b) the transferee is to be taken to have incurred capital expenditure of that amount on the provision of the property for the purposes for which it is used by the transferee on and after the taking effect of the transfer,

(c) the property is to be taken as belonging to the transferee in consequence of the transferee having incurred that expenditure, and

(d) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) A provision mentioned in sub-paragraph (1)(d) for the determination of an amount may include provision--

(a) for a determination to be made by the Secretary of State in a manner described in the scheme,

(b) for a determination to be made by reference to factors so described or to the opinion of a person so described, and

(c) for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(4) The Treasury's consent is required for the making or modification of a determination under a provision mentioned in sub-paragraph (1)(d).

(5) The transferee's consent is also required for such a modification after the relevant transfer takes effect.

(6) If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(d) all necessary adjustments--

(a) must be made by making assessments or by repayment or discharge of tax, and

(b) must be made despite any limitation on the time within which assessments may be made.

Capital allowances for machinery and plant: connected persons

15. For the purposes of Part II of the 1990 Act references in that Part to a transaction (however described) between connected persons within the meaning of section 839 of the 1988 Act are not to include references to a relevant transfer.

Leased assets

16.--(1) Sub-paragraphs (2) and (3) apply for the purposes of section 781 of the 1988 Act (assets leased to traders and others) if the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred to a person under a relevant transfer.

(2) The transfer is to be treated as made without any capital sum having been obtained in respect of the interest by the transferor; and this is so despite section 783(4) of that Act.

(3) If the interest is an interest under a lease, payments made by the transferor under the lease before the transfer takes effect are to be treated as if they had been made under that lease by the transferee.

(4) Sub-paragraph (5) applies for the purposes of section 781 of the 1988 Act if a lease, or any other interest in an asset, is granted by virtue of provision made under paragraph 4 of Schedule 18.

(5) The grant is to be treated as made without any capital sum having been obtained in respect of the lease, or interest, by the grantor; and this is so despite section 783(4) of that Act.

(6) No charge is to arise under section 781(1) of the 1988 Act by virtue of section 783(2) of that Act in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) by the transferor on a disposal by virtue of a relevant transfer of securities of a subsidiary of the transferor.

(7) Expressions used in this paragraph and in sections 781 to 785 of the 1988 Act have the same meanings in this paragraph as in those sections.

Loan relationships

17.--(1) Sub-paragraph (2) applies if, as a result of a relevant transfer, the transferee replaces the transferor as a party to a loan relationship.

(2) Chapter II of Part IV of the Finance Act 1996 is to have effect in relation to any period beginning with the time the relevant transfer takes effect as if--

(a) the transferee had been a party to the loan relationship at the time the transferor became a party to the loan relationship and at all times since that time, and

(b) the loan relationship to which the transferee is a party after the time the transfer takes effect is the same loan relationship as that to which, by virtue of paragraph (a), it is treated as having been a party before that time.

(3) Expressions used in this paragraph and in Chapter II of Part IV of the Finance Act 1996 have the same meanings in this paragraph as in that Chapter.

Charge to tax under Case I of Schedule D

18.--(1) This paragraph applies for the purpose of computing the profits or losses of the transferor and the transferee under Case I of Schedule D in respect of any trade or part of a trade transferred by a relevant transfer in relation to any period beginning with the time the transfer takes effect.

(2) The trade or part of a trade transferred is to be treated as having been, at the time of its commencement and at all times since that time, a separate trade carried on by the transferee.

(3) The trade carried on by the transferee after the time the transfer takes effect is to be treated as the same trade as that which, by virtue of sub-paragraph (2), it is treated as having carried on before that time.

(4) This paragraph is subject to paragraphs 13 and 17.

Part IV

Transfers to Secretary of State from SRA and BR

Interpretation

19. In this Part of this Schedule--

"relevant transfer" means a transfer of property, rights or liabilities by virtue of--

(a) a scheme under paragraph 1 of Schedule 20 under which the property, rights or liabilities are transferred to the Secretary of State, or

(b) a scheme under paragraph 1 of Schedule 23,

"transferee", in relation to a relevant transfer, means the Secretary of State, and

"transferor", in relation to a relevant transfer, means the person from whom the property, rights or liabilities are transferred.

Chargeable gains: groups

20.--(1) Sub-paragraph (2) applies if a company ("the degrouped company")--

(a) acquired an asset from another company at any time when both were members of the same group of companies ("the old group"), and

(b) ceases by virtue of a relevant transfer to be a member of the old group.

(2) Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) If, disregarding any preparatory transactions, a company would be regarded for the purposes of section 179 of the 1992 Act (and, accordingly, of this paragraph) as ceasing to be a member of a group of companies by virtue of a relevant transfer, it is to be regarded for those purposes as so doing by virtue of the relevant transfer and not by virtue of any preparatory transactions.

(4) In this paragraph "preparatory transaction" means anything done under or by virtue of this Part of this Act for the purpose of initiating, advancing or facilitating the relevant transfer in question.

(5) Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.

Capital allowances: actual consideration to be the disposal value

21.--(1) Sub-paragraphs (2) to (4) apply for the purposes of Part I of the 1990 Act, and the other provisions of that Act which are relevant to that Part, if there is a disposal by virtue of a relevant transfer of the relevant interest in--

(a) an industrial building or structure, or

(b) a qualifying hotel or a commercial building or structure.

(2) The disposal is to be treated as a sale of that relevant interest.

(3) The sale moneys in respect of that sale are to be taken--

(a) if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that capital sum, or

(b) if no such capital sum is received, to be nil.

(4) Sections 157 and 158 of that Act (sales between connected persons or without change of control) are not to have effect in relation to that sale.

(5) Sub-paragraph (6) applies for determining, in the case of a disposal of machinery or plant by virtue of a relevant transfer, the amount which (in consequence of that disposal) is to be brought into account as the disposal value of that machinery or plant for the purposes of section 24 of the 1990 Act (balancing adjustments).

(6) The amount is, subject to section 26(2) and (3) of that Act (disposal value of machinery or plant not to exceed capital expenditure incurred on its provision) to be taken--

(a) if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that capital sum, or

(b) if no such capital sum is received, to be nil.

(7) Sub-paragraph (8) applies if, in consequence of a disposal by virtue of a relevant transfer, a fixture is treated by section 57(2) of the 1990 Act as ceasing to belong to a person at any time.

(8) The amount which, in consequence of that disposal, is to be brought into account as the disposal value of the fixture for the purposes of section 24 of that Act is, subject to section 26(2) and (3) of that Act, to be taken--

(a) if a capital sum is received by the transferor or a person connected with the transferor by way of consideration or compensation in respect of the disposal, to be an amount equal to that portion of that capital sum which falls (or, if the person to whom the disposal is made were entitled to an allowance, would fall) to be treated for the purposes of Part II of that Act as expenditure incurred by that person on the provision of the fixture, or

(b) if no such capital sum is received, to be nil.

(9) Sub-paragraphs (3), (6) and (8) have effect despite any other provision of the Capital Allowances Acts.

Leased assets

22.--(1) Sub-paragraphs (2) and (3) apply for the purposes of section 781 of the 1988 Act (assets leased to traders and others) if the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred to a person under a relevant transfer.

(2) The transfer is to be treated as made without any capital sum having been obtained in respect of the interest by the transferor; and this is so despite section 783(4) of that Act.

(3) If the interest is an interest under a lease, payments made by the transferor under the lease before the transfer takes effect are to be treated as if they had been made under that lease by the transferee.

(4) Sub-paragraph (5) applies for the purposes of section 781 of the 1988 Act if a lease, or any other interest in an asset, is granted by the transferor by virtue of provision made under paragraph 5 of Schedule 20 or paragraph 4 of Schedule 23.

(5) The grant is to be treated as made without any capital sum having been obtained in respect of the lease, or interest, by the transferor; and this is so despite section 783(4) of that Act.

(6) No charge is to arise under section 781(1) of the 1988 Act by virtue of section 783(2) of that Act in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) by the transferor on a disposal by virtue of a relevant transfer of securities of a subsidiary of the transferor.

(7) Expressions used in this paragraph and in sections 781 to 785 of the 1988 Act have the same meanings in this paragraph as in those sections.

Part V

Transfers from SRA to franchise company

Interpretation

23. In this Part of this Schedule--

"relevant transfer" means a transfer of property, rights or liabilities by virtue of a scheme under paragraph 1 of Schedule 20 under which the property, rights or liabilities are transferred to a franchise company,

"transferee", in relation to a relevant transfer, means the franchise company to whom the property, rights or liabilities are transferred, and

"transferor", in relation to a relevant transfer, means the person from whom the property, rights or liabilities are transferred.

Chargeable gains: disposals not to be treated as made at market value

24.--(1) Section 17 of the 1992 Act (disposals and acquisitions treated as made at market value) is not to have effect in relation to--

(a) a disposal constituted by a relevant transfer or a disposal by virtue of provision made under paragraph 5 of Schedule 20, or

(b) the acquisition made by the person to whom the disposal is made.

(2) But sub-paragraph (1) does not apply--

(a) if the person making the disposal is connected with the person making the acquisition, or

(b) in the case of a disposal by virtue of provision made under paragraph 5 of Schedule 20, if the disposal is made by or to a person other than the transferor or the transferee.

(3) If sub-paragraph (1) applies to the disposal of an asset, the disposal is to be taken (in relation to the person making the acquisition as well as the person making the disposal) to be--

(a) in a case where consideration in money or money's worth is given by the person making the acquisition or on his behalf in respect of the vesting of the asset in him, for a consideration equal to the amount or value of that consideration, or

(b) in a case where no such consideration is given, for a consideration of nil.

Chargeable gains: groups

25.--(1) Sub-aragraph (2) applies if a company ("the degrouped company")--

(a) acquired an asset from another company at any time when both were members of the same group of companies ("the old group"), and

(b) ceases by virtue of a relevant transfer to be a member of the old group.

(2) Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) If sub-aragraph (2) applies to an asset, that section is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies ("the new group"), otherwise than by virtue of a qualifying transfer,

as if the degrouped company and the company from which it acquired the asset had been members of the new group a

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Party Summary

Votes by party, red entries are votes against the majority for that party.

What is Tell? '+1 tell' means that in addition one member of that party was a teller for that division lobby.

What are Boths? An MP can vote both aye and no in the same division. The boths page explains this.

What is Turnout? This is measured against the total membership of the party at the time of the vote.

PartyMajority (Aye)Minority (No)BothTurnout
Con0 122 (+2 tell)077.5%
Independent0 1033.3%
Lab304 (+2 tell) 0073.7%
LDem0 34072.3%
PC0 1025.0%
SNP0 1016.7%
Total:304 159073.5%

Rebel Voters - sorted by party

MPs for which their vote in this division differed from the majority vote of their party. You can see all votes in this division, or every eligible MP who could have voted in this division

Sort by: Name | Constituency | Party | Vote

NameConstituencyPartyVote
no rebellions

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