The decision tips the balance in favour of the revelation of
information held by local authorities, even if it is deemed
commercially sensitive. The Council had argued that releasing the
information would be economically detrimental to the area. The
decision can be appealed.
A journalist had requested information from the Council about
the deal struck between it and Ryanair over the airline's use of
Derry City Airport. The Council blacked out financial specifics
contained in a fax from Ryanair outlining the deal, and the
journalist complained to the Information Commissioner.
The request was made by Brian Hutton of the Belfast Telegraph
under the Freedom of Information Act (FOIA), and was initially
refused altogether by the Council. It later provided a copy of a
fax outlining the agreement but with specific details blacked
out.
The Council argued that it was permitted to keep the information
private under exemptions contained in sections 29 and 42 of the
Act, which allow a local authority to deny information if it would
prejudice the economic interest of any part of the UK, or the
commercial interest of the authority itself. It also relied on an
exemption relating to breach of confidence.
Ryanair has previously been involved in disputes about its deals
with airports. The European Commission had found that the local
authority behind Charleroi airport had provided some un-notified
assistance to Ryanair which broke EU rules.
The Information Commissioner backed Hutton and ordered that the
information be released, and this decision was appealed to the
Information Tribunal. It in turn found that the Council, which owns
Derry Airport, had been warned about the possibility of similar
action.
"There was evidence that in about 2000 the local government
auditor raised with the Council his concerns that the terms of the
Ryanair Agreement might have an impact on EU Competition Law and
State aid," said Tribunal Deputy Chairman Chris Ryan in his ruling.
The Council took legal advice on that point at the time and
continued the arrangement.
Ryan said that many of the specifics of the case could not be
disclosed until either the conclusion of an appeal or the date for
the lodging of an appeal has passed. He said there was an important
principle at stake, though.
"We are not concerned with the detail of the debate which may
result if we order disclosure of the Ryanair Financial
Information," said Ryan. "The only legitimate concern is the
balance to be struck between the public interest in disclosing
information that may illuminate that debate, on the one hand, and
the public interest in maintaining the relevant exemption, on the
other," he said.
Ryan upheld the original decision of the Information
Commissioner. Although there would be prejudice to the commercial
interests of the Council, which was already running the airport at
a loss for the more general economic benefit of the area, Ryan said
that this had to be weighed against the public interest in having
the information made public.
The public interest of disclosure outweighed the public interest
of the economic interest of the area, he said. Against the
background of the Charleroi decision, he said, there was a clear
public interest in the details of the deal, though his detailed
argument was submitted in confidence in order to preserve the
confidentiality of the deal until the appeal date has passed.
