Evidence setting out economic benefit of GFG Alliance deal with Scottish Government: FOI review

Information requested

Your request, reference 202100222209
1) Any business plan, business case, or document setting out the economic benefit of a deal between GFG Alliance and the Scottish Government, received by the Scottish Government in either 2015, 2016, or 2017.

2) The advice provided to the Scottish Government from EY around the Lochaber guarantee, unredacted.

3) Specifically, the detail of the advice provided by EY to the Scottish Government on the pricing of the charge to GFG Alliance for the guarantee.

4) Since 2016, please provide a quarterly or yearly breakdown (i.e. Q1 2017: £2m) of the total amount expected to be paid to the Scottish Government by GFG Alliance over the 25 years of the guarantee.

5) Since 2017, please provide a quarterly or yearly breakdown (i.e. Q1 2017: £2m) of the total amount actually be paid to the Scottish Government by GFG Alliance from Q1 2016 to date.

Your review request, reference 202100238248
I am writing to you to request an internal review.

I believe my request is sufficiently narrow to not fall foul of the cost exemption and you have provided no evidence as to why it would do so, nor suggested what the cost of such a search may be.

Response

I have been asked to look at your request afresh, to decide whether the original response should be confirmed, with or without modifications, as appropriate, or that a fresh decision should be substituted. I can confirm that I was not involved in the handling or decision-making around the original response.

I have considered this case again, and I have conducted a comprehensive review of the response, and the reasons behind withholding the requested information. I have concluded that the original decision should be overturned. As such, I have attached responses below to the specifics of your questions. Furthermore, I have set out what relevant exemption applies to each of your questions and the reasoning for applying these can be found in the Annex. 

1) Attached is all documentation within the scope of your request setting out the economic benefits of a deal within the supporting documents – the business case you reference and plans. These documents contain both personal and commercially sensitive data therefore sections 33(1)(b) and 38(1)(b) apply. In addition the Scottish Government has already published significant documentation relating to the Guarantee and Reimbursement Agreement so section 25(1) applies. Links to the already published material can be found here Gupta Family Group: documentation 2016 to 2020 - gov.scot (www.gov.scot).

2) The Scottish Government has already published the advice it received from EY on the Lochaber guarantee. This information was released in line with the FOISA statute and while our aim is to provide information whenever possible, in this instance we were unable to provide any more information than was initially released as exemptions under FOISA apply, specifically sections 33(1)(b) and 38(1)(b). Further information on what exemptions are applied and why can be found in the Annex.

3) The Scottish Government has already published the advice it received from EY on the Lochaber guarantee. This information was released in line with the FOISA statute and while our aim is to provide information whenever possible, in this instance we were unable to provide any more information than was initially released as exemptions under FOISA apply, specifically sections 33(1)(b) and 38(1)(b). Further information on what exemptions are applied and why can be found in the Annex.

4) The overall estimated value of the Lochaber guarantee fee is reported annually in the Scottish Government’s Consolidated Accounts. In 2016-17, the total discounted value of the fee premiums over the 25 year period was valued, as per methodology required by IAS 17 Provisions, at £18.7m. The Scottish Government Consolidated Accounts for the year ended 31 March 2020 (published in December 2020) show the carrying value of this financial asset in the accounts was reduced to nil as a result of the implementation of the new accounting standard. The level of the guarantee fee charged in particular time periods is commercially confidential therefore an exemption under section 33(1)(b) FOISA (commercial prejudice) applies.

5) The level of the guarantee fees received by the Scottish Government in particular time periods is commercially confidential therefore an exemption under section 33(1)(b) FOISA (commercial prejudice) applies.

Due to the size of the files we are unable to upload the documents referred to above. If you wish to consider, please contact us at the address below and we will be happy to provide.

ANNEX A
Reasons for not providing information

Section 25(1) – Information Otherwise Accessible
Some of the information you have requested is available from Gupta Family Group: documentation 2016 to 2020 - gov.scot (www.gov.scot).
Under section 25(1) of FOISA, we do not have to give you information which is already reasonably accessible to you.

Section 33(1)(b) – Commercial Interest and the Economy
An exemption under section 33(1)(b) of FOISA applies to some of the information you have requested because it is likely to prejudice substantially the commercial interests of the parties. This exemption applies because disclosure of this particular information would, or would be likely to, prejudice substantially the commercial interests of the commercial entities involved. This exemption is subject to the ‘public interest test’. Therefore, taking into account of all the circumstances of this case, we have considered if the public interest in disclosing the information outweighs the public interest in applying the exemption. We have found that, on balance, the public interest lies in favour of upholding the exemption. We recognise that there is some public interest in release to ensure full transparency. However, this is outweighed by the public interest as there is a risk to the companies commercial interests.

Section 38(1)(b) – Personal data
This exemption applies to some of the information requested because it is personal data of a third party, i.e. names and contact details, and disclosing it would contravene the data protection principles in Article 5(1) of the General Data Protection Regulation and in section 34(1) of the Data Protection Act 2018. This exemption is not subject to the ‘public interest test’, so we are not required to consider if the public interest in disclosing the information outweighs the public interest in applying the exemption.

About FOI
The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.