Agreements, Communications and Payments to/with Logainair

Summary

The requester sought agreements, communications, and payment details regarding Loganair's air services and financial assistance during the COVID-19 pandemic. The Department of Infrastructure disclosed specific contracts and email correspondence but withheld details of sums paid due to statutory exemptions.

Key Facts

• The request was received on 24 November 2020 and responded to on 26 January 2021.
• Disclosed documents include Heads of Terms dated 23 March 2020 and a contract dated 30 November 2020.
• An additional contract extending the original term was signed on 1 December 2020.
• Email correspondence between the Department's CEO and the Treasury's CFO was released.
• Details of specific sums of money paid to Loganair were withheld under exemptions.

Data Disclosed

• 24 November 2020
• 26 January 2021
• 23 March 2020
• 30 November 2020
• 1 December 2020
• July 1st 2020
• 11 October 2011
• 20 working days
• section 30(2)(b)
• section 35(c)

Exemptions Cited

• Freedom of Information Act 2015 section 30(2)(b)
• Freedom of Information Act 2015 section 35(c)

Original Request

Dear Department of Infrastructure, I am writing to make a freedom of information request for all the information to which I am entitled under the relevant Freedom of Information provisions. I am an Isle of Man resident. Please send me: 1) A copy of any agreement(s) in effect between the Isle of Man Government and Logainair relating to the provision of air services between the Isle of Man and the United Kingdom; and 2) Any communications or correspondence between, or on behalf of the Isle of Man Government or any of its ministers and any employee, CEO, or persons with significant control or interest in Loganair from July 1st 2020, relating to financial assistance given to Loganair in the wake of the Covid-19 public health crisis. 3) Details of any sums of money paid to Loganair, by the Isle of Man government, in way of state aid, financial grants, amendments to existing contract(s) or similar made since July 1st 2020. I believe that this is likely to be included with the Freedom of Information definition of 'all information held by authorities listed in Schedule 1 of the Act and which was created on or after 11 October 2011.' I would like the above information to be provided to me as electronic copies by email to me. If the files are too large to transfer by email, I am happy to attend your offices with a USB stick. If you prefer alternative arrangements, please contact me to discuss. If this request is too wide or unclear, I would be grateful if you could contact me as I understand that Manx law requires you to advise and assist requesters. If any of this information is already is already publicly available, please advise and assist me to locate the information I am seeking, with page references and URLs if necessary. If the release of any of this information is prohibited on the grounds of breach of confidence, I ask that you supply me with copies of the confidentiality agreement and remind you that information should generally not be treated as confidential if such an agreement has not been signed. I understand that you are required to respond to my request within the 20 working days after you receive this letter. I would be grateful if you could confirm in writing that you have received this request. I look forward to hearing from you.

Data Tables (1)

Full Response Text

Department of Infrastructure Sea Terminal Building, Douglas, Isle of Man, IM1 2RF

Contact: FOI Response Team Telephone: (01624) 686642 Email: dpo-doi@gov.im

Our ref: 1571137 26 January 2021

Dear ###

We write further to your request which was received on 24 November 2020 and which states (sic):

"Please send me: 1) A copy of any agreement(s) in effect between the Isle of Man Government and Logainair relating to the provision of air services between the Isle of Man and the United Kingdom; and 2) Any communications or correspondence between, or on behalf of the Isle of Man Government or any of its ministers and any employee, CEO, or persons with significant control or interest in Loganair from July 1st 2020, relating to financial assistance given to Loganair in the wake of the Covid-19 public health crisis. 3) Details of any sums of money paid to Loganair, by the Isle of Man government, in way of state aid, financial grants, amendments to existing contract(s) or similar made since July 1st 2020. I believe that this is likely to be included with the Freedom of Information definition of 'all information held by authorities listed in Schedule 1 of the Act and which was created on or after 11 October 2011.' I would like the above information to be provided to me as electronic copies by email to me. If the files are too large to transfer by email, I am happy to attend your offices with a USB stick. If you prefer alternative arrangements, please contact me to discuss. If this request is too wide or unclear, I would be grateful if you could contact me as I understand that Manx law requires you to advise and assist requesters. If any of this information is already is already publicly available, please advise and assist me to locate the information I am seeking, with page references and URLs if necessary. If the release of any of this information is prohibited on the grounds of breach of confidence, I ask that you supply me with copies of the confidentiality agreement and remind you that information should generally not be treated as confidential if such an agreement has not been signed."

In accordance with your request, please find enclosed: 1. Heads of Terms dated 23rd March 2020; 2. A copy of the contract dated 30th November 2020, along with 2a. an additional contract dated 1st December 2020 extending the term of the original contract; 3. Copies of email correspondence between the Department’s Chief Executive Officer and the Chief Financial Officer of the Treasury;
4. Copies of email correspondence between the Department’s Director of Ports and the CEO and Chief Commercial Officer of Loganair. While our aim is to provide information wherever possible, in this instance part of the information and question 3 of your request is exempt from disclosure under sections 30(2)(b) and 35(c) of the Freedom of Information Act 2015. Accordingly, some of the information has been redacted, the reasoning is explained further in the paragraphs below. Third party personal data and email addresses/telephone numbers have also been redacted. It is also noted that the pandemic is ongoing, border restrictions remain in place and the appointment of Loganair for this essential service has only recently concluded. At this stage, it is uncertain how long the border restrictions will remain in effect. The contract contains information relating to the costs of return air travel for patients, therefore the commercial interests of the Department of Health & Social Care have also been considered. Economy and Commercial Interests The amount of financial assistance provided to Loganair is exempt from disclosure under section 30 of the Act, which relates to economy and commercial interests. The reasons why this exemption applies are as follows: Section 30(2)(b) is a prejudice-based exemption, only applying in instances where harm to the economy would or would be likely to occur. We are satisfied that disclosing the information would likely be harmful to the economy and commercial interests of the Isle of Man. Our consideration of prejudice and its likelihood of occurring, in respect of section 30(2)(b), is that disclosure of the amount of financial assistance may also cause harm to the commercial interests of Loganair and any other airline which may tender for similar service provision in the future. Section 30 of the Act is a qualified exemption and therefore subject to a public interest test. In assessing where the public interest lies, the following factors have been considered: Factors in favour of disclosure: • Transparency and openness by disclosing the information; • Accountability to the general public in respect of pandemic-related expenditure. Factors in favour of maintaining the exemption: • Harm to the commercial interests of Loganair;

• Reputational damage to the DOI arising from disclosure with commercial airlines, particularly Loganair; • Damage to the economy of the IOM by releasing the information, if in future the tender exercise needed to be repeated this could put some airlines at an unfair advantage, and Loganair at a disadvantage • Reputational and commercial damage to the DHSC in respect of commercial airlines, particularly Loganair; • Harm to the commercial interests of other airlines operating between IOM/London routes; Conduct of Public Business Section 35 of the Act is also a qualified exemption and therefore also subject to a public interest test. In assessing where the public interest lies, the following factors have been considered: Factors in favour of disclosure: • Transparency and openness by disclosing the information; • Accountability to the general public in respect of pandemic-related expenditure. Factors in favour of maintaining the exemption: • Government needs to be able to react accordingly during the pandemic and period of border restrictions to preserve vital transport links. It is crucial that commercial interests of operators be protected during this unprecedented time. There is a possibility that the information could be disclosed once the border restrictions have been removed; • The appointment process may need to be repeated again during the border restrictions. Disclosure could potentially nullify any process in the near future. Taking these factors into account, the Department of Infrastructure has determined that at this point in time the factors in favour of maintaining the exemption outweigh the factors in favour of disclosing the information. A written question on the total cost of underwriting the Island’s air routes was recently asked in Tynwald, the response to question 53 can be viewed online at https://www.tynwald.org.im/business/hansard/20002020/t201215%20Early%20Writte n%20Answers.pdf. Should you wish to resubmit your request once the borders are fully unrestricted, it can be re-considered under different circumstances

Please quote the reference number 1571137 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact us and we will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded. If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact us. Further information about freedom of information requests can be found at www.gov.im/foi. We will now close your request as of this date.

Yours sincerely

FOI Response Team