A person authorised by or under an enactment to operate a tramway (“the lessor”) may with the consent of the Secretary of State grant to another person (“the lessee”), for a period agreed between the lessor and the lessee, the right to operate the tramway (or any part of it) and such related statutory rights as may be so agreed.

The terms of any agreement made by virtue of subsection (1) above shall be subject to the approval of the Secretary of State.

Where an agreement is made by virtue of subsection (1) above, references in any enactment to the lessor shall, if and to the extent that the agreement so provides, have effect as references to the lessee.

This section shall apply only to tramways in operation at the passing of this Act.