Thank you again, DV. I had read that quote from the Scottish Government Minister but am not sure that I fully follow it:
"Having reflected on the evidence at Stage 1 [Justice Committee Report], the Government believe that it is inconsistent to have discretionary FAIs into military deaths abroad (but only if the death is notified to the Lord Advocate) and coroners’ inquests into such deaths in England and Wales, but not when the death occurs in Scotland."
That rather makes it sound as if the power to hold a discretionary FAI into a service death in Scotland does not exist at all, whereas as you know the power does already exist where the Crown Office considers it "expedient in the public interest", which is the essence of a "discretionary inquest".
The employment status of the deceased is immaterial to the exercise of that power under section 1(1)(b) of the 1976 Act.
Good luck and keep going.