With this it will be convenient to discuss the following amendments: No. 18, in page 11, line 13, leave out

'and

(e) a franchise company.'.

No. 17, in page 11, line 14, at end insert—

'(3A) The appropriate national authority shall not make a scheme for the transfer of relevant franchise assets to a franchise company, at the end of the franchise period, if an independent assessment, which must be authorised by the national authority, demonstrates that the assets could be operated more economically and efficiently by a person identified in subsection (3)(a), (b), (c) or (d).'.

No. 4, in page 11, line 43, at end insert—

'(9) The Secretary of State may not exercise his powers under subsections (2) and (3) to make a scheme to transfer the relevant franchise assets of any franchise currently operated by the Strategic Rail Authority (SRA) to a franchise company. Those assets shall continue to be operated by a company wholly owned by the Secretary of State or the Scottish Ministers.'.