COUNCILLOR’S TRADING

Greymouth Evening Star, 28 September 1928, Page 12

COUNCILLOR’S TRADING

MR HUNTER'S RESIGNATION

(Special to “Star.”)

CHRISTCHURCH, September 27

Mr G. R. Hunter, Labour member of the City Council, has resigned following an inquiry by the Audit Department into an alleged technical breach of the Municipal Corporations Act.

The Point Elizabeth Coal Miners’ Co-operative Coal Depot of which Mr Hunter is a 1 partner, has been supplying coal to the City Council through a third party, who bought the coal before selling it to the Council. The Audit Department claims that this transaction is a technical breach of the Act, but took no stqps to remove Mi* Hunter from office. A byelection will be held on Tuesday, October 23. Nominations will close at noon on Friday, October 12. A statement concerning Mr Hunter’s resignation was made to-day by the Mayor (Rev. J. K. Archer) in the

presence of Mr Hunter and with his consent. The Mayor said that Mr. Hunter had given as his reason for resigning the fact that he was feeling the pressure of business very keenly. He was funding he would have to give more attention to his business in the North Island, as well as iii'tfie - South Island. Moreover as the result of the pressure under which he had been working,' his health had not been > satisfactory during recent months. “That, however as I see it, is not quite the whole story,” added the Mayor, “because I think the business pressure under’ which Mr Hunter has suffered has been accentuated by some alleged irregularities in regard to trading with the Council. Mr Hunter maintains, and I without qualification accept his statement, that if there has been irregularities, they have been committed in ignorance. In the first place, complaint was made some six months ago by the Audit Office, concerning the use of a truck for^carting stone from the Council’s quarries. This truck had been the property of the company to which Mr Hunter be-

longs, but arrangements -were made

by means of which a previous employee of Mr Behan, one of Mr Hunter’s partners, should purchase the truck on time payment system. This he is actually doing, according to a proper agreement, which was drawn up between the parties. Within a comparatively short time, the whole purchase money will be paid. However, the original payments were made to the company of which Mr Hunter

is a member. Exception to this was taken by the Audit Department. As soon as the objection of the Audit Department was received, the method of payment was abandoned. Mr Hunter ordered the owner of the truck to cease carting for the Council. No such carting had been done since. The second difficult with the Audit Department arose in connection with the supply of coal from Mr Hunter’s, company, which does both wholesale and retail business, to the Council. This was supplied to the Council through a third party, just as the Council might have been supplied by any coal company doing business in the City doing retail business. Mr Hunter was absolutely convinced there was nothing irregular, seeing the third party bought the coal outright and sold it to the Council at a profit. Unfortunate-

ly, a complication arose through this third party not having a banking account. It is a fact that he used the banking operations of the company to which Mr Hunter belongs. As soon as this was pointed out to Mr Hunter, he' took professional advice on the matter, in order to assure himself that nothing improper or irregular was tak-

ing place. He received that assurance in a most emphatic manner. However, the Audit Office took a different view of things, and came, to the conclusion that the operation was a technical broach of the provisions of the Municipal Corporations Act, though the Department did not take steps to force Mr Hunter out of office. Personally, I exceedingly regret Mr Hunter has severed his connection with the Council. Both as an individual Councillor' and a Chairman of the Works Committee, he has rendered most efficient service to* the City, which lias taken up an immense amount of his time. His absence from the Council will be a big loss,, in view of the enterprises which the Council is about to undertake, particularly the reading scheme. Mr Hunter’s services would have been invaluable. Personally, I hope sufficient pressure will be brought to bear upon him to induce him to reconsider his decision, and offer himself for reelection. Of course lie will have to consider the effect such action might have upon his health, but possibly a way may be found of overcoming even that difficulty.” Supplementing the Mayor’s statement, Mr Hunter said he was so satisfied that riie whole transaction in regard to the supply of coal to .the Council was in order, that even after the objection was first raised by the Audit Department, he allowed the arrangement to continue. So far as the City was concerned, a saving of 11/- a ton had been made in the cost of coal. In the aggregate, the saving amounted to a. very considerable sum. Mr Hunter said that he had placed his resignation in the hands of the Labour Representation Committee, which would take whatever action it deemed advisable. He would, be leaving for the North Island the following evening, and would be absent from Christchurch for some time.

In view of the near approach of the Parliamentary elections, and the fact that seven members of the Council are candidates, the resignation of Mr. Hunter will reduce the effective strength of the Council at an inopportune time. The Mayor, Councillors D. G. Sullivan. 11. T. Armstrong, E. R.

McCombs, Clyde Carr, F. R. Cooke, and E. H. Andrews will shortly be em gaged in an election campaign, and will not. be able to devote much time to Council business.