Local government accountability beats commercial confidentiality, say Paul Dacam & Jamie Potter
A recent High Court ruling on the interpretation of a legislative provision dating back to the early 19th century is likely to have considerable ramifications for those contracting with local authorities.
In particular, the ruling significantly increases the risk of disclosure of sensitive information provided by contractors to local government authorities, irrespective of any potential commercial prejudice or breach of confidentiality.
The case R (on the application of the Veolia ES Nottinghamshire Ltd) v Nottinghamshire County Council [2009] All ER (D) 78 (Oct) involved an application by Veolia for judicial review of the decision of Nottinghamshire County Council (Notts CC) to disclose certain documents relating to a waste management PFI contract between Veolia and Notts CC (the PFI contract) that Veolia had won through a public tender.
The documents in question had been requested by an environmental activist, in his capacity as a local elector, and comprised the payment and performance mechanism and KPI schedules to the PFI contract, as well as the itemised invoices submitted by Veolia to Notts CC.
