It had previously refused to confirm any details as to how much each party was spending on the work, citing commercial confidentiality.
The Guernsey Press challenged this under the access to public information code, arguing that a public interest test should have been applied and questioning how the release of a one-off project cost that cannot be tendered for again could be commercially sensitive.
‘The extension of the duty free sales area is being funded by the current concession holder, Randalls. The company was prepared to commit a significant budget to that development, which presented an opportunity to also expand and improve the existing security area,’ Guernsey Airport said in its response.
All design and construction costs for both elements are being met by Randalls.
Guernsey Airport has now confirmed it will be spending around £30,000 on LED lighting in the new screening area, upgrading CCTV in the search areas and installing air conditioning.
‘These elements were either part of ongoing improvements, such as the installation of LED lighting, or would have been required in due course.
‘For instance, CCTV is having to be replaced as we transition from analogue to digital and existing equipment reaches the end of its working life and can no longer be replaced, like for like.
‘Similarly, low ceilings and multiple items of equipment producing heat made the search area unbearably hot in the summer, and air conditioning will afford a more comfortable environment for all users.’
The airport said that Randalls’ investment would not be released, citing two exceptions – information whose disclosure would prejudice the commercial interests of the States and whose unwarranted disclosure would harm the competitive position of a third party.
Despite being asked, it provided no documentary evidence to support its decision or showed how it had balanced the public interest against commercial sensitivity.
‘Before announcing the works, Guernsey Airport liaised with Randalls in the preparation of a news release for local media.
‘It was agreed the investment would not be disclosed, as the company considers that to be commercially sensitive, and might be used by competitors to gain advantage in any future tendering process. It has confirmed that remains its position.
‘Besides the costs (i.e. £30,000) to upgrade lighting/equipment in the secure area, which is routine capital expenditure, there is no public money required.
‘Guernsey Airport therefore considered there to be very limited public interest in disclosing the overall cost of the scheme. That is outweighed by the wider financial benefits that, generally, can arise from such partnership opportunities – and specifically so in this instance.’
The project itself was not tendered for, nor was the duty free contract re-tendered.
‘The works have been commissioned by our tenant, against a specification provided by the airport. As long as that specification is met we have no requirement for a third-party to seek tenders.’
Guernsey Airport said that States procurement rules allow for variation of contract terms, including lease extensions, to be negotiated without tendering where a more partnership-based approach benefits the States and the public purse.
‘Randalls’ investment in the duty free shop is providing much-needed improvement to security facilities at the airport, without recourse to public funds, or passenger or landing charges.
‘It also offers opportunities to increase non-aviation income, which is an important revenue stream to offset other charges.
‘In return for this investment, Guernsey Airport agreed a five-year extension to the company’s current lease. It is expected the concession will be tendered again before the end of that lease, which expires in 2029.’
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