Commentary on provisions of Act Section 1: Prohibition on franchise extensions and new franchises
Subsection (2) removes sections 25 to 26ZA of RA93 and introduces a new section 25A. This new section prohibits appropriate franchising authorities from extending existing franchise agreements or entering into new franchise agreements.
	The only exception is that, where the Secretary of State is the appropriate franchising authority, the Secretary of State may extend an existing franchise agreement or directly award a new franchise agreement to an existing franchisee under section 30A of RA93 where satisfied that it will not be reasonably practicable to provide, or secure the provision of, railway passenger services under s30(1) of RA93 by way of awarding a contract to a public sector company. This power may only be exercised in accordance with section 30B of RA93. These sections are discussed in more detail in paragraphs 21 to 26 below.
	Subsection (3) amends section 23 of RA93 to provide a duty for the appropriate designating authority to designate such railway passenger services it considers "ought to be provided under section 30 to section 30C." The amendment replaces the previous duty to designate such services as ones which "ought to be provided under franchise agreements". It removes the presumption that such services will be provided by private sector franchisees and creates the new presumption that they will be provided by public sector companies. Services previously designated under section 23(1) of RA93 are treated as services designated under the section as amended.