A follow up to show the Government do have a form of power (by legislation) to veto TfL's plan on withdrawing from the Travelcard Agreement as provided by anon third party.
ERTA are lay people generally but we pass on in the wider public interest and fully support opposition to the withdrawal of this useful One Day Travelcard facility.
The status of Transport for London is treated as
a Local Authority and not a Ministerial Department.
TfL's subsidiary for operations is Transport
Trading Limited, Company number 03914810.
https://find-and-update.company-information.service.gov.uk/company/03914810
https://tfl.gov.uk/corporate/about-tfl/how-we-work/corporate-governance/subsidiary-companies
Transport Trading Limited is mentioned as the
party of the 2018 Travelcard Agreement released by FOI request, with Rail
Settlement Plan Limited (Company number 03069042) of Rail Delivery Group.
https://tfl.gov.uk/corporate/transparency/freedom-of-information/foi-request-detail?referenceId=FOI-2203-1819
I've researched the legislation and the
Government do have powers to control TfL without changing the legislation in
Parliament named Greater London Authority Act 1999 (by stripping the Mayor of
London from Transport powers).
Greater London Authority Act 1999
Section 143
Directions by the Secretary of State.
(1) Where the Secretary of State considers
that—
(a) the transport strategy (or any part of it) is inconsistent with national
policies relating to transport, and
(b) the inconsistency is detrimental to any area outside Greater London, he may
direct the Mayor to make such revisions of the transport strategy in order to
remove the inconsistency as may be specified in the direction.
(2) Where the Secretary of State gives the Mayor a direction under subsection
(1) above, the Mayor shall revise the transport strategy in accordance with the
direction.
https://www.legislation.gov.uk/ukpga/1999/29/section/143
Explanatory Note
245. Section 143 gives the Secretary of State
a limited power to direct the Mayor to change the transport strategy. The
Secretary of State will only be able to use this power where the strategy would
be inconsistent with national policy and have an adverse effect outside Greater
London. In accordance with section 144, London borough councils, the Common
Council and any other statutory body exercising transport functions will be
required to have regard to the strategy. The Mayor can issue guidance about the
implementation of the strategy to other bodies that must also have regard to
it.
https://www.legislation.gov.uk/ukpga/1999/29/notes/division/5/4/1/2
I did check the Mayor of London's Transport
Strategy, there's no mention of his proposal on getting TfL to withdraw from
the Travelcard Agreement, therefore he has no mandate to do it.
https://tfl.gov.uk/corporate/about-tfl/the-mayors-transport-strategy
https://content.tfl.gov.uk/the-mayors-transport-strategy-update-2020-21-acc.pdf
Greater London Authority Act 1999
Section 157
Restriction on exercise of certain powers except through a company.
(1) The Secretary of State may by order made
with the consent of the Treasury provide that Transport for London shall not
carry on such activities as are specified in the order except through
(a) a limited liability partnership of which a subsidiary of Transport for
London (but not Transport for London) is a member; or
(b) a company which is registered under the Companies Act 2006 and limited by
shares or limited by guarantee and which is—
(i) a subsidiary of Transport for London; or
(ii) a company which Transport for London formed, or joined with others in
forming, by virtue of section 156(1) above and which does not fall within
sub-paragraph (i) above.
(2) The specification of an activity in an order under subsection (1) above
shall not—
(a) prevent Transport for London from entering into or carrying out under
section 156(2) or (3) above an agreement with a person for the carrying on of
that activity by that person; or
(b) affect the validity of such an agreement.
(3) If it appears to the Secretary of State that Transport for London is
carrying out, or proposes to carry out, otherwise than in compliance with an
order under subsection (1) above any activities specified in such an order—
(a) the Secretary of State may give a direction to Transport for London
requiring it to comply with the order within such period as may be specified
for the purpose in the order; and
(b) Transport for London shall be under a duty to comply with such a direction.
https://www.legislation.gov.uk/ukpga/1999/29/section/157
Explanatory Note
286. Section 157 enables the Secretary of
State by order made with the consent of the Treasury to specify activities
which TfL is not to carry on except through a subsidiary or a jointly owned
company. By virtue of section 419 TfL itself, but not its subsidiaries, will be
exempt from income, corporation and capital gains tax. By requiring TfL
to carry on certain activities only through subsidiaries, an order under this
section will have the effect of defining those activities of TfL which will
attract liability to tax and those which will not. Further orders could be made
in the future to ensure that if the activities concerned are carried on they
are carried on through a subsidiary of TfL and are taxable accordingly.
https://www.legislation.gov.uk/ukpga/1999/29/notes/division/5/4/2/1
Greater London Authority Act 1999
Section 164
Control of subsidiaries.
The powers of the Authority and the powers of
Transport for London shall be exercised so as to ensure that a subsidiary of
Transport for London—
(a) does not do anything which Transport for London has no power to do
(including anything which Transport for London has no power to do because the
consent of the Secretary of State has not been obtained),
(b) does not do anything which the Mayor has directed Transport for London not
to do, and
(c) does not, except with the consent of the Mayor, raise money by the issue of
shares or stock to any person other than Transport for London or any other
subsidiary of Transport for London.
https://www.legislation.gov.uk/ukpga/1999/29/section/164
Explanatory note
293. Section 164 places the Mayor and TfL
under a duty to ensure that the subsidiaries of TfL do not do anything that TfL
has not been given power to do by the Act, even though the subsidiary may be
acting within the powers conferred by its memorandum and articles.
https://www.legislation.gov.uk/ukpga/1999/29/notes/division/5/4/2/1
The legislation on TfL's status:
Greater London Authority Act 1999
Schedule 10 - Status and capacity
Paragraph 1
(1) Transport for London shall not be
regarded as the servant or agent of the Crown or as enjoying any status,
immunity or privilege of the Crown.
(2) The members and staff of Transport for London shall not be regarded as
civil servants and the property of Transport for London shall not be regarded
as property of, or held on behalf of, the Crown.
(3) It shall be within the capacity of Transport for London to do such things
and enter into such transactions as are calculated to facilitate, or are
conducive or incidental to, the discharge of any of its functions.
https://www.legislation.gov.uk/ukpga/1999/29/schedule/10/crossheading/status-and-capacity
Explanatory note
256. Paragraph 1 of Schedule 10 provides that
TfL is not to be regarded as the servant or agent of the Crown or as enjoying
any status, immunity or privilege of the Crown and its staff and property are
not to be regarded as civil servants or property of the Crown. Thus it will not
have the benefit of the rule that a statute does not bind the Crown except by
express provision or necessary implication. The powers of TfL will be
restricted to powers conferred by the Act and powers incidental to those
powers.
https://www.legislation.gov.uk/ukpga/1999/29/notes/division/5/4
Local Government Act 1972
Section 100J
Application to new authorities, Common Council, etc.
(1) Except in this section, and subject as
follows, any reference in this Part to a principal council includes a reference
to—
(be) Transport for London;
https://www.legislation.gov.uk/ukpga/1972/70/section/100J
Local Government Act 1972
Section 138C
Application of sections 138A and 138B
to other authorities
(1) Each of the following is (subject to the
limitations set out) to be treated as a local authority for the purposes of
sections 138A and 138B—
(a) the London Assembly, but only for the purposes of section 138A;
(b) the Greater London Authority, but only for the purposes of section 138B;
(c) the Mayor's Office for Policing and Crime, but only for the purposes of
section 138B;
(d) the London Fire Commissioner but only for the purposes of section 138B;
(e) Transport for London;
https://www.legislation.gov.uk/ukpga/1972/70/section/138C
The Government also have power to take control
of local authorities, which could possibly include TfL because of their status.
House of Commons Library:
Intervention in local government
Intervention: the legal position
The legal power for the Government to intervene in the running of a local
authority is broad and flexible, permitting the takeover of any local functions
by the Secretary of State or appointees. Intervention takes place under
section 15 (6) of the Local Government Act 1999.
Each intervention begins with a formal direction notice. Typically powers
are returned to the local authority after a period of years, although they may
not all be returned at once. Some interventions have been preceded by
reports based on ‘best value’ inspections, though this is not a legal
requirement for an intervention to take place.
https://commonslibrary.parliament.uk/intervention-in-local-government/
Local Government Act 1999
Section 15
Secretary of State’s powers.
(6) Where this section applies in relation to
an authority the Secretary of State may direct—
(a) that a specified function of the authority shall be exercised by the
Secretary of State or a person nominated by him for a period specified in the
direction or for so long as the Secretary of State considers appropriate, and
(b) that the authority shall comply with any instructions of the Secretary of
State or his nominee in relation to the exercise of that function and shall
provide such assistance as the Secretary of State or his nominee may require
for the purpose of exercising the function.
https://www.legislation.gov.uk/ukpga/1999/27/section/15
Explanatory note
45. Section 15 offers the Secretary of State
a wide range of intervention powers in response to failures. These include some
which are of a procedural nature, and others which involve more substantive
action either on the part of the authority (where, for example, it might be
required to externalise a function), or on the part of the Secretary of State (who
might, in extreme cases of failure, intervene to exercise a function of the
authority himself or through a nominee). In any case, where the Secretary of
State intends to take action against an authority based upon recommendations of
inspectors, he will normally be required to allow the relevant authority to
make representations both about the recommendation itself, and the action which
is proposed in respect of it.
https://www.legislation.gov.uk/ukpga/1999/27/notes/division/5/1/4
These are the legislations to show the Government do have some form of power to veto TfL's proposal because their status is classified as a local authority.
I've also found a legislation
(Section 42 of Enterprise Act 2002) where the Secretary of State can intervene
a company (i.e. Transport Trading Limited) in certain public interest cases.
https://www.legislation.gov.uk/ukpga/2002/40/section/42
Explanatory note for Section 42 of Enterprise Act 2002:
Intervention by Secretary of State in certain public interest cases
151. This section allows the Secretary of State to intervene in the
consideration of a case by serving an intervention notice where she believes it
raises a public interest consideration that needs to be taken into account.
152. Subsection (2) allows the Secretary of State to serve an intervention
notice in a case that she thinks might raise one or more public interest
considerations, and subsection (4) provides that only one intervention notice
may be served in any case. Subsection (3) limits the considerations that she
may raise in this way to those specified in section 58 or those that the
Secretary of State thinks should be so specified. Subsection (7) has the effect
that, in the latter case, the Secretary of State must bring forward an order
specifying the consideration in legislation and seeking Parliament's approval
of it (‘finalise’ the consideration) as early as practicable.
153. Subsection (1) sets out the conditions to be met before an intervention
notice can be served. A key condition is that the notice cannot be served if a
reference decision has already been taken by OFT.
https://www.legislation.gov.uk/ukpga/2002/40/notes/division/4/3/1/2/1/1
I do mention the DfT persuaded TfL to appoint two DfT special representatives to TfL as part of their financial settlement.
Transport for London Settlement
Letter
Governance
48. A Financial Sustainability Group will meet in May 2022 to support and
assess TfL’s progress towards becoming financially sustainable by April 2023.
It will be chaired by DfT’s portfolio Minister and will be attended by the
Deputy Mayor for Transport of London, HMG’s Special Representatives (see
paragraph 49) and Senior Officials at DfT, HMT, No.10 and TfL. The aim of the
group is to ensure that TfL reaches financial sustainability by April 2023. To
inform these meetings, TfL will provide to DfT 15 working days prior to the
meeting, a detailed report on their progress towards reaching financial
sustainability, including progress on demand and passenger revenue, deal
conditions and risks.
49. Two HMG appointed Special Representatives (one strategic appointee and one
technical appointee) will continue to attend all TfL Board meetings, being able
to raise questions at the Board, request additional information as reasonably
required and report back to the Secretary of State on these matters.
50. The Technical Special Representative will also continue to attend all
meetings of the Finance Committee and the Programmes and Investment Committee,
to work closely with TfL to support its progress towards financial
sustainability. All relevant papers will be shared by TfL with the Special
Representatives as well as a nominated contact in DfT in advance of each Board
meeting.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1057532/TfL-extraordinary-funding-and-financing-settlement-letter-25-February-2022.pdf
For liaison, please feel free to send to richard.erta@gmail.com
Thank you to all who help in any way.
Railfuture is also swinging into action/make common cause: https://www.railfuture.org.uk/article1890-The-Travelcard-Add-on-A-case-for-retention
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