Commentary on provisions of Act Section 57: Rail: franchising of passenger services
The Railways Act 1993 ("the 1993 Act") provides that the bodies and persons listed in section 25(1)(a) to 25(1)(f) (public sector operators) shall not be a franchisee. Accordingly, those bodies and persons listed in section 25(1) of the 1993 Act may not bid for, or operate, passenger rail services under a franchise agreement in Great Britain.
	Subsection (3) of the section will have the effect of lifting this prohibition in relation to Scottish franchise agreements. It will allow a public sector operator to be a franchisee in relation to a franchise agreement for the provision of services that begin and end in Scotland (Scotland-only services) and such other cross-border services that are designated by the Scottish Ministers to be provided under that same franchise agreement.
	Subsection (4) of the section provides that the disapplication of section 25(1) of the 1993 Act in relation to Scottish franchise agreements will apply only in relation to an invitation to tender issued by the Scottish Ministers under powers set out in section 26(2) of the 1993 Act on or after subsection (3) comes into force.