Strategic Rail Authority

Statutory background to directions and guidance

Section 207(5) of the Transport Act 2000 ("the Act") enables the Secretary of State to give to the Strategic Rail Authority ("the Authority") directions and guidance in relation to the manner in which it is to exercise its functions in order to comply with section 207(1) to (3) of the Act. He may also give the Authority directions not to exercise any of its functions in a particular manner (or not to do so without consulting or obtaining his consent).

This document sets out the Secretary of State's directions and guidance relating to the functions in respect of property, rights and liabilities transferred to the Authority from the British Railways Board (hereafter "the Board"). They seek to replicate the appropriate objectives set for the Board by Ministers on 15 February 2000.

Section 209 of the Act requires the Secretary of State to publish these directions and this guidance in such manner as he considers appropriate and he will make this document publicly available on the department's corporate web site.

In this document, directions to the Authority are in italics

Directions and guidance

Channel Tunnel usage contract

Responsibility for the Channel Tunnel Usage Contract remains with the Board. The Authority must work closely with the Board to assist in securing the novation of the Usage Contract to the Authority as soon as possible.

British Transport Police

The Government has announced its intention to establish a national Police Authority for the British Transport Police as soon as the legislative timetable permits. In the meantime, the Authority must continue to undertake the duties required of it in the British Transport Police Force Scheme 1963.

Residual activities

The Authority must ensure proper management of all residual property, rights and obligations transferred to it from the Board so as to protect the interest of the Secretary of State and minimise any call on public expenditure.

In particular, the Authority must ensure:

• that claims of all kinds are settled in accordance with approved claims control procedures;
• that all assets and liabilities transferred to the Authority from the Board are managed so as to secure best value for money for the taxpayer, subject always to any directions from the Secretary of State in specific cases; and
• that, in the exercise of its power, duties and obligations as designated employer of all pension funds covering past employees of the Board or its predecessors, it has regard to the costs to the employer in the longer term arising from any future benefit improvements.

Control of subsidiaries

Where a function is exercised by a subsidiary of the Authority, the Authority must exercise its control over the subsidiary so as to ensure that it complies with these directions and has regard to this guidance, as if the function were being exercised by the Authority directly.