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Stephen Hammond (Shadow Minister, Transport; Wimbledon, Conservative)

I beg to move amendment No. 46, in clause 28, page 19, line 2, at end insert—

‘( ) Subsection (4) applies only where a compensatory arrangement has been reached, which is enforceable by the Office of Rail Regulation.’.

The amendment is designed to ensure that there is a fair deal for those potentially or actually adversely affected by the terms of clause 28. The clause gives the rail regulator the power either to direct a facility owner to enter into an access contract with a prospective Crossrail passenger service provider or to amend existing access contracts that he may have at the request of the would-be service provider. When doing that, the Office of Rail Regulation is not allowed to make the parties to the affected contract change the amounts payable under that contract. That means that a situation could arise whereby a facility owner is forced to allow a third party far greater access to his facility than before, but without the commensurate financial compensation or reward. In other words, it seems that the power granted under the clause allows the possibility that the facility owner will give something away and make extra provision, yet receive nothing in return.

I grant that subsection (5) gives the ORR the power to review the appropriate access charges, but the key point is that the financial provisions of the contract previously agreed to by the parties cannot necessarily change. When the parties are forced by the ORR to alter the terms of the contract, it is likely that one of them will suffer financially. For that loss, there ought to be a compensation process provided for by the ORR.

Elsewhere in the Bill, compensation is offered to parties adversely affected by powers granted to the Secretary of State and the rail regulator. For me, it follows that those who are forced to amend existing access contracts should also be entitled to the appropriate financial reimbursement and compensation. That strikes me as a just and responsible thing to do.

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