Lochaber Smelter "monitoring reports" extracts: FOI Review

Information requested

Original Request 202500496386
I am requesting specific extracts from the "monitoring reports" produced by external advisors (Deloitte, Teneo, or similar) regarding the Scottish Government's financial guarantee to the GFG Alliance (Alvance British Aluminium) for the Lochaber Smelter.

Please provide:

1. The "Risk Dashboard" Only: The single page or section from the two most recent quarterly monitoring reports (covering late 2024 and 2025) that displays the "RAG Status"
(Red/Amber/Green) or equivalent "Risk Rating" for the counterparty.

Clarification: I am not requesting the detailed commercial trading data, cash flow forecasts, or proprietary operational figures, which I accept may be exempt under Section 33(1)(b). I am requesting only the top-level risk classification (e.g., the colour or rating code) assigned to the project by the government's advisors.

2. Breach Notifications: A schedule of any formal "Reservation of Rights" letters or "Notices of Default" issued by the Scottish Government to any GFG Alliance entity between 1 January 2024 and the date of this request.

3. Advisory Spend: The total amount (£) paid to Deloitte and Teneo for advice related to the GFG Alliance/Lochaber Guarantee during the financial year 2024-2025.

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 have conducted a comprehensive review of the response, and the reasons behind withholding some of the requested information.

The wording of your initial request was:

Please provide:

• The "Risk Dashboard" Only: The single page or section from the two most recent quarterly monitoring reports (covering late 2024 and 2025) that displays the "RAG Status" (Red/Amber/Green) or equivalent "Risk Rating" for the counterparty.
• Clarification: I am not requesting the detailed commercial trading data, cash flow forecasts, or proprietary operational figures, which I accept may be exempt under Section 33(1)(b). I am requesting only the top-level risk classification (e.g., the colour or rating code) assigned to the project by the government's advisors.
• Breach Notifications: A schedule of any formal "Reservation of Rights" letters or "Notices of Default" issued by the Scottish Government to any GFG Alliance entity between 1 January 2024 and the date of this request.
• Advisory Spend: The total amount (£) paid to Deloitte and Teneo for advice related to the GFG Alliance/Lochaber Guarantee during the financial year 2024-2025.

Your request for a review

You requested a review as follows:

I am dissatisfied with the response because the decision to withhold information under Section 17 (Information Not Held) and Section 36(1) (Legal Privilege) is logically inconsistent with the financial facts disclosed. Please release:

• The "RAG" or "Risk" status summary from the most recent Deloitte report (or confirm explicitly that none exists).
• The schedule of Notices/Reservation of Rights letters sent to GFG Alliance.

Please search again. If you maintain "Information Not Held", please explicitly confirm in your review outcome that Ministers receive no summary risk rating from Deloitte despite the £551k annual spend.

Results of the review

I have concluded that the original decision should be confirmed with modifications. Your review request falls into two parts:

1. Your request that a further search is carried out for the information requested which was covered by the section 17 Notice (Information not held). I can confirm that a further search was carried out and although Scottish Government has various risk management processes in place the contract you mentioned, which provides a summary of the financial information provided to Scottish Government by the management of the Smelter Co and the Hydro Co, does not cover the information you requested. Therefore, I have concluded that the section 17 Notice does apply.

2, The application of Section 36(1) (Legal Privilege) to the information requested.

I have concluded that an exemption under section 36(1) does not apply to the information to which it was applied and have therefore withdrawn reliance on this exemption. However, I have concluded that this information should be withheld under section 30(c)((prejudice to effective conduct of public affairs).

An exemption under section 30(c) of FOISA (prejudice to effective conduct of public affairs) applies to some of the information you requested. It is essential for Ministers and officials to be able to communicate, often in confidence, with external stakeholders on a range of issues, including matters of a commercially sensitive nature. Disclosing the content of these communications, particularly without the consent of the stakeholder, is likely to undermine their trust in the Scottish Government and will substantially inhibit communications on this type of issue in the future. These stakeholders will be reluctant to participate in meetings or provide their views fully and frankly if they believe that their views are likely to be made public. Discussions remain ongoing and decisions have not yet been taken.

These discussions relate to detailed and sensitive commercial matters. Disclosure of the information requested would significantly harm the Government’s ability to carry out many aspects of its work, and could adversely affect its ability to gather all of the evidence it needs to make fully informed decisions.

An exemption under s30(c) is subject to the ‘public interest test’. Therefore, taking into account all of the circumstances of this case, I have considered whether the public interest in disclosing the information outweighs the public interest in applying the exemptions.I recognise that there is a public interest in disclosing information including the wider significance of this industry to Scotland, its economy and the local community together with the Scottish Government’s commitment to being an open, transparent and accountable government.

However, there is also a public interest to avoid causing or creating an adverse impact on the competitiveness of the businesses involved, protecting the close and trust-based relationships that the Scottish Government needs to maintain with companies, advisors and other bodies to conduct business effectively. This relates particularly to external parties where there are events ongoing and to avoid weakening the Scottish Government's position in any future negotiations that may be required with the GFG Alliance in relation to the Lochaber site. Likewise protecting the process of due diligence that allows commercial scrutiny while avoiding adverse impacts on the wider economy in Lochaber and Scotland, and on the GFG workforce. Where companies have not consented to disclosure doing so could make businesses less likely to engage with the Scottish Government and substantially prejudice its ability to take action to secure the future of commercial operations and jobs.

While our aim is to provide you with information wherever possible, on this occasion after reviewing the information on a line-by-line basis we are unable to provide you with some of the information you have requested as statutory exemptions under FOISA apply as mentioned previously. Details of the exemptions together with the public interest test in applying the exceptions can be found in the annex attached.

I have concluded, therefore, that the original decision should be upheld but with modifications as mentioned as on balance I have determined that the public interest test lies in favour of exempting the information from release.

About FOI

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

FOI 202500499440 - Information Released - Annex

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