Legislation – Subsidy Control Act 2022

the subsidy is not used to directly or indirectly benefit so much of the insurer’s business as consists of providing export credit insurance against marketable risks.

(2)

In this section—

“export credit insurance” has the same meaning as in section 16;

“insurer” means a person who has permission to carry on the regulated activity of effecting or carrying out contracts of insurance under—

(a)

Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activities), or

(b)

paragraph 15 of Schedule 3 to that Act (EEA passport rights), as it has effect as a result of section 409 of that Act (Gibraltar);

“marketable risks” has the same meaning as in section 16;

“regulated activity” has the meaning given by section 22 of the Financial Services and Markets Act 2000, taken with Schedule 2 to that Act and any order under that section.

28Subsidies for air carriers for the operation of routes

(1)

A subsidy to an air carrier for the operation of a route is prohibited by this section unless the condition in subsection (2), (3) or (4) is met.

(2)

The condition in this subsection is that operating the route is a public service obligation of the air carrier imposed under—

(a)

Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the United Kingdom, or

(b)

Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (as it has effect in EU law).

(3)

The condition in this subsection is that the public authority giving the subsidy is satisfied that the subsidy will provide benefits for society at large.

(4)

The condition in this subsection is that—

(a)

the subsidy is a start-up subsidy for opening a new route to a regional airport, and

(b)

the public authority giving the subsidy is satisfied that the new route will increase the mobility of citizens and stimulate regional development.

29Services of public economic interest

(1)

The requirements in subsections (2) and (3) apply in relation to the giving of a subsidy to a SPEI enterprise for the purpose of the provision of SPEI services.

(2)

The public authority giving the subsidy must be satisfied that the amount of the subsidy is limited to what is necessary to deliver the SPEI services, having regard to—

(a)

costs in delivering the SPEI services, and

(b)

reasonable profits to be made in doing so.

(3)

The subsidy must be given in a transparent manner.

(4)

For the purposes of subsection (3), a subsidy is given in a “transparent manner” only if—

(a)

the subsidy is given in accordance with a written contract or other legally enforceable arrangement in writing,

(b)

the terms on which the subsidy is given are set out in the contract or arrangement, and

(c)

the contract or arrangement includes the information in subsection (5).

(5)

The information is—

(a)

the SPEI services in respect of which the subsidy is given;

(b)

the SPEI enterprise that is tasked with providing the SPEI services;

(c)

the period for which the SPEI services are to be provided (“the delivery period”);

(d)

the geographic area in which the SPEI services are to be provided;

(e)

how the amount of subsidy given in respect of the SPEI services is determined;

(f)

arrangements for the purposes of subsection (6) in respect of reviews and steps that may be taken for recovery.

(6)

Where a subsidy is given to a SPEI enterprise, the public authority giving the subsidy—

(a)

must, during the delivery period, keep under regular review the use of the subsidy to ensure that the condition in subsection (2) continues to be met, and

(b)

must take steps, in accordance with its rights under the contract or arrangement mentioned in subsection (4), to recover a subsidy to the extent that the condition in subsection (2) ceases to be met.

(7)

For the purposes of the duty in subsection (6)(a), checks must be carried out as to the use of a subsidy—

(a)

at least once every 3 years beginning with the day when the delivery period begins, and

(b)

at the end of the delivery period.

(8)

The duties under section 12(1) apply to the giving of a subsidy in accordance with this section to a SPEI enterprise for the provision of SPEI services only so far as the carrying out of that duty does not obstruct the carrying out of those services.

(9)

In this Act—

“SPEI enterprise” means an enterprise that is assigned with particular tasks in the public interest (including public service obligations);

“SPEI services” means services provided in the carrying out of those tasks.