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First-tier Tribunal (General Regulatory Chamber) |
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You are here: BAILII >> Databases >> First-tier Tribunal (General Regulatory Chamber) >> Learmond-Criqui v Information Commissioner & Anor [2023] UKFTT 687 (GRC) (21 August 2023) URL: http://www.bailii.org/uk/cases/UKFTT/GRC/2023/687.html Cite as: [2023] UKFTT 687 (GRC) |
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General Regulatory Chamber
Information Rights
B e f o r e :
Tribunal Member Rosalind Tatam
Tribunal Member Stephen Shaw
____________________
JESSICA LEARMOND-CRIQUI |
Appellant |
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- and - |
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THE INFORMATION COMMISSIONER |
First Respondent |
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and |
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THE SECRETARY OF STATE FOR SCIENCE, INNOVATION AND TECHNOLOGY |
____________________
For the Appellant: Jessica Learmond-Criqui as a Litigant in Person
For the First Respondent: Richard Bailey, Solicitor within the Information
Commissioners' Office.
For the Second Respondent: Horatio Waller of Counsel.
____________________
Crown Copyright ©
Result: The Tribunal dismiss the appeal.
Introduction:
Factual Background to this Appeal:
History and Chronology:
"Re the request for a direction below, the National Security Strategic Investment Fund (NSSIF) had on government's behalf sought professional financial advice on the company's prospects into the purchase of OneWeb by the government.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/902931/OneWebrequest_for_ministerial_direction.pdf
The letter above states: 'That work involved scrutinising the business plan from the firm's management, including its revenue projections, through a financial model. It drew on expertise provided by a space-sector consultant. The model was also adjusted to ensure that it reflects a more conservative projection of the likely returns'.
The request is for a copy of the report sought by NSSIF which relates to the statement above.("the First Part of the request")
In addition, a request is made for any reports considering the health impacts of using electromagnetic radiation / radiofrequency radiation from satellites on humans, animals, pollinators and trees in considering the implications of this investment".(the Second Part of the Request")
S1 FOIA General right of access to information held by public authorities.
1. Any person making a request for information to a public authority is entitled —
(a) to be informed in writing by the public authority whether it holds information of the description specified in the request, and
(b) if that is the case, to have that information communicated to him.
However these rights are subject to certain exemptions set out in Part II of FOIA. For the purposes of this case, the relevant exemption in Part II is s. 43(2) FOIA which provides that:
"Information is exempt information if its disclosure under this Act would, or would be likely to, prejudice the commercial interests of any person (including the public authority holding it)".
Section 43:
Section 43 FOIA is a qualified exemption to disclosure and is therefore subject to the public interest test under section 2(2)(b) FOIA. This states that a public authority does not have to provide the information if; "in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.".
Prejudice:
The First Tier Information Rights Tribunal in Christopher Martin Hogan and Oxford City Council v the Information Commissioner (EA/2005/0026 and 0030) ("Hogan") set out the following useful steps to take when considering whether disclosure would be likely to prejudice commercial interest, which we adopt in this case:
a. Identify the "applicable interests" within the relevant exemption,
b. Identify the "nature of the prejudice". This means:
i. Show that the prejudice claimed is "real, actual or of substance";
ii. Show that there is a "causal link" between the disclosure and the prejudice claimed.
c. Decide on the "likelihood of the occurrence of prejudice" ([28] – [43]).
Likelihood of Prejudice:
The meaning of the words "would or would be likely to" prejudice has been considered by the Tribunal and Courts' on a number of occasions.
The "would be likely to prejudice" test was analysed in the context of the s.29(1) exemption of the Data Protection Act 1998 in R (Lord) v Secretary of State for the Home Department [2003] EWHC 2073 (Admin). Munby J at [100] considered that:
"likely" … connotes a degree of probability where there is a very significant and weighty chance of prejudice to the identified public interests. The degree of risk must be such that there "may very well" be prejudice to those interests, even if the risk falls short of being more probable than not". (emphasis added)
The Tribunal has endorsed Munby J's observations when considering the equivalent language in Part II of FOIA: In the Tribunal in Hogan v Information Commissioner [2011] 1 Info LR 588 summarised the two standards of chance, would and would be likely, as follows:
"there are two possible limbs on which a prejudice-based exemption might be engaged. Firstly, the occurrence of prejudice to the specified interest is more probable than not ["would"], and secondly there is a real and significant risk of prejudice, even if it cannot be said that the occurrence of prejudice is more probable than not ["would be likely"]." ([33])
The First Tier Information Rights Tribunal in John Connor Press Associates v Information Commissioner (EA/2005/0005) also added clarity with regards to the minimum level of chance to satisfy the "would be likely to" test, considering at [15] that:
"We interpret the expression "likely to prejudice" as meaning that the chance of prejudice being suffered should be more than a hypothetical or remote possibility".
The approach in Hogan at [29] – [35] has since been approved by the Court of Appeal in DWP v Information Commissioner [2016] EWCA Civ 758: per Lloyd Jones LJ at [27].
It is important to note that whilst the chance of prejudice needs be significant and weighty, the extent of the prejudice does not need to be, although it will be relevant to the public interest balance. It is sufficient that "some commercial disadvantage" is likely to be suffered (Newham LBC v Information Commissioner EA/2011/0288 at [41]).
Public interest test:
The material time to consider the public interest balance is the time of the response to the request. – see Montague v Information Commissioner & Department of International Trade [2022] UKUT 104 (AAC) ('Montague') – which in this case is 29 September 2020. The Tribunal considered the timing of the likelihood of prejudice also as at the end of September 2020 (consistent with Montague).
Commissioner's Decision Notice:
i) The harm alleged by BEIS relates to the commercial interests of OneWeb and therefore accepted that the alleged prejudice is relevant to the section 43 exemption;
ii) The causal relationship between releasing the withheld information and prejudice to the commercial interests of OneWeb is real and of substance [19];
iii) Disclosure 'would' prejudice the commercial interests of OneWeb and OneWeb's investors and that the anticipated prejudice is more likely than not [20];
iv) As a consequence of the above, the Commissioner was satisfied that the exemption under section 43(2) was engaged [21];
v) The public interest in maintaining the exemption under section 43(2) outweighed the public interest in disclosure on the facts of this particular case [26- 30];
vi) Given the Commissioner's conclusion on the application of section 43(2), the Commissioner did not consider it necessary to also reach a conclusion on the application of section 41 [31].
vii) In relation to second part of the request the Commissioner alleges that the Complainant has not complained to the Commissioner about BEIS' response to their additional request regarding material considering health impacts.
viii) The Commissioner also stated that he was aware BEIS had engaged with the UK Space Agency to also confirm that no reports on satellite radiation health implications exist within the remit of the UK Space Agency.
ix) The Commissioner at Paragraph 12 of the DN considered the scope of his investigation to be solely related to BEIS' application of FOIA section 41(1) and 43(2) exemptions to the report.
Grounds of Appeal:
(I) £500 million of taxpayer's money was spent on purchasing OneWeb for which the Government should be accountable;
(II) The purchase of OneWeb was against the advice of the UK Space Agency and against the advice of BEIS;
(III) The Government misled the public into thinking that OneWeb would replace Galileo and that therefore it was important for the public to have sight of the advice the Government received;
The Commissioner's Response:
I. Disclosure of the information would prejudice the commercial interests of OneWeb, impairing the success of the company in terms of its ability to compete and secure contracts, which would adversely impact on the returns on the investment of public money;
II. There had, at the material time (i.e. prior to the response to the request), been public scrutiny of the Government's decision to invest by the BEIS Strategy Committee on 17 September 2020 (on the same day as the request). The Committee held an evidence session to have a technical overview of UK satellite strategy and of satellite-based broadband against the backdrop of the OneWeb deal (there has been further scrutiny by other select committees though after the material time);
III. Non-disclosure agreements ("NDA") had been created with regard to the financial model analysis and technical assessment.
Response of Second Respondent:
"Firstly, the Report is based upon, and presents, information provided by OneWeb to the Government that attracts confidentiality by virtue of the NDA. The disclosure of the Report in 2020 would make the SoS liable to an action for breach of confidence from OneWeb pursuant to the NDA.
Secondly, the Report contains information the disclosure of which would likely make the SoS liable to OneWeb in an equitable action for breach of confidence. The Report clearly meets the Coco v AN Clark (Engineers) Ltd criteria.
Thirdly, the Report itself states that it is confidential to the Consultancy, and it should not be disclosed except in accordance with the terms of the engagement letter. The disclosure of the Report in 2020 would have made the SoS liable to an action for breach of confidence from the Consultancy."
Appellant's Reply;
Second Respondents further submissions on background:
At Para.2." On 17 September 2020 Ms Learmond-Criqui ("JLC") sent an email requesting disclosure of documents pertaining to that decision from what was then the Department for Business, Energy and Industrial Strategy ("BEIS") ("Request 1") [OB/127-128]. On the same day, JLC submitted a separate request directed to the UK Space Agency ("the UKSA") ("Request 2"). BEIS has since been split, and the newly formed Department for Science, Innovation and Technology ("DSIT") now has responsibility for this area of policy [OB/183/11]".
At Para.3. "Request 1 sought disclosure of the following from BEIS:
Part A: a report commissioned by the National Security Strategic
Investment Fund ("NSSIF") providing financial services into OneWeb's
prospects.
Part B: "any reports considering the health impacts of using
electromagnetic radiation/radio frequency radiation from satellites
on humans, animals, pollinators and trees in considering the
implications of this investment."
At Para. 4. "In relation to Part A of Request 1, DSIT has since disclosed openly that it holds this report, prepared by the consultants, Lazard. It is within the closed bundle [CB/14]. DSIT maintains its decision to refuse disclosure, under ss41 and 43 of the Freedom of Information Act 2000 ("FOIA"). In relation to Part B of Request 1, DSIT's position throughout the proceedings has been that it holds no reports fitting this description."
At Para 5. "The decision by BEIS to refuse Request 1 was upheld by the Information Commissioner ("the IC") in the decision letter 5 August 2022 [OB/1-9] on the basis of s43 of the FOIA and having found that the public interest in maintaining that exemption outweighs the public interest in disclosure. Because of this conclusion, the Commissioner did not need to consider the reliance on s41 of the FOIA."
At Para 6. "Part B of Request 1 was repeated in identical terms by JLC within Request 2 to the UKSA. Request 2 additionally sought disclosure of a "technical report" created by the Aerospace Corporation. This is a separate document from the Lazard Report."
At Para 7. "The decision by the UKSA to refuse Request 2 was upheld by the IC in a separate decision letter dated 3 May 2023 (Reference IC-218830-V4B8 - not in the bundle). Notwithstanding the overlap, this appeal concerns Request 1 only. JLC has sought permission to join this appeal with her appeal for Request 2, which at the date of writing has not been granted by the Tribunal."
Witness Statement of William Hardy:
Late Application from Jessica Learmond-Criqui:
Analysis:
1.) Counsel directed the Tribunal to the Lazard Report and the non-disclosure agreement which are contained within the closed bundle. The Tribunal were taken to each part of the report, and Members scrutinised the accuracy of the summary of its content within the letter of Ms Beckett to the Secretary of State, when she described the assessment as having "involved scrutinising the business plan from the firm's management, including its revenue projections, through a financial model".
2.) The Panel asked questions to Mr Hardy on whether the report reached a "rational commercial case for investing" in OneWeb, as Ms Beckett stated.
3.) The Tribunal also scrutinised the extent to which the information within the report is already within the public domain, for example as a result of the US bankruptcy proceedings. Mr Hardy confirmed that he did not have knowledge of the extent of information in the public domain.
4.) Counsel's general submission was that the information is not in the public domain. The Tribunal were directed by counsel to the documents generated by the US Bankruptcy Court proceedings, within OB/545 onwards. The submission was made that the information made publicly available through those proceedings was limited in subject matter to the assets, liabilities and financial affairs of OneWeb, and it did not purport to reveal information about the business plan, or projections for revenue, funding and expenditure. Further, the submission was made that limited detail was disclosed within the schedules concerning those subject matters.
5.) The Panel scrutinised Mr Hardy's closed witness statement. The Panel explored the extent to which the report addresses the issues of interest to the Appellant and the public, and in particular the extent to which the investment was motivated by an objective to use OneWeb's satellites for PNT capabilities. In that regard, the Tribunal scrutinised the accuracy of Mr Hardy's witness statement paragraph 23, final sentence. The Panel were given a technical overview by Mr Hardy of the concept of adding resiliency to PNT services and shown that these concepts were explained to the Select Committee at OB/430 and OB/447.
6.) Finally, the Tribunal were taken to the non-disclosure agreement in order to scrutinise its breadth.
Is Section 43 engaged:
The Public Interest:
"1. The letter Sam Beckett wrote on 26 June 2022 summarises the scope and purpose of the Lazard Report and the key conclusions that were reached [OB/19-21]. It is not necessary for the public to see the full report to understand these matters.
a) The scope and purpose of the Lazard Report is described in Ms. Beckett's letter as involving "scrutinising the business plan from the firm's management, including its revenue projections, through a financial model".
b) Ms. Beckett summarised the outcome of the Report as setting out a "rational commercial case for investing".
c) Her letter goes on to refer to potential returns and commercial risks that Ms Beckett derived from the Lazard Report.
2. Transparency had already been significantly achieved into the investment through the information about OneWeb and the Government's decision to invest within it that was made publicly available before JLC submitted her request for information."
Conclusion:
Brian Kennedy KC
17 August 2023.