Mr G. R. Hunter Resigns From City Council.

Star (Christchurch), Issue 18577, 27 September 1928, Page 10

Mr G. R. Hunter Resigns From City Council.

ACTION FOLLOWS INQUIRY BY AUDIT DEPARTMENT INTO SALE OF COAL TO THE MUNICIPALITY.

MR G. R. HUNTER, a 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 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 steps to remove Mr Hunter from office. A by-election will be held on Tuesday, October 23, and nominations will close at noon on Friday, October 12.

A statement concerning Mr Hunter's resignation was made to-day by the Mayor, the Rev J. K. Archer, in the presence of Mr Hunter and with his consent. The Mayor said that Mr Him ter had given as his reason for resigning the fact that he was feeling the pressure of business very keenly, and that he was finding that he would have to give more attention to his business in the North Island, as well as in the South Island. Moreover, as a result of the pressure under which he had been working his health had not been quite satisfactory during recent months. “ That, however, as I see it, is not quite the whole story,” added the Mayor, “ because I think that 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 have been irregularities they have been committed in ignorance. Use of Motor Truck. “ In the first place a 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 belongs, but arrangements were made by means of which a previous employee of Mr J. Beban, one of Mr Hunter’s partners, should purchase the truck on the time payment system. This he is actually doing according to a proper agreement which was drawn up between the parties, and within a comparatively short time the whole of the purchase money will be paid. However, the original payments were made to the company of which Mr Hunter is a member, and 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, and Mr Hunter ordered the owner of the truck to cease carting for the council, and no such carting had been done since. Supply of CoaL “ The second difficulty with the Audit Department arose in connection with a supply of coal from Mr Hunter’s company, which does both a wholesale and a retail business, to the council. This was supplied to the council through a third party, just as the coun cil might have been supplied by any coal company doing business in the city doing a retail business, and Mr Hunter is absolutely convinced that in it there was nothing irregular, seeing that the third party bought the coal outright and sold it to the council at a profit. “ Unfortunately a complication arose through this third party not having a banking account, and the 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 taking place, and 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 breach 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 that Mr Hunter has severed his connection with the council. Both as an individual councillor and as chairman of the Works Committee he has rendered most efficient service to the city, which has taken up an immense amount of his time, and his absence from the council will be a big loss. In view of the enterprises which the council is about to undertake, particularly the roading scheme, Mr Hunter’s services would have been invaluable, and personally I hope that sufficient pressure will be brought to bear upon him to induce him to reconsider his decision and offer himself for re-election. Of course he will have to consider the effect that such an action might have upon his health, but possibly a way may be found of overcoming even that difficulty.”

Mr Hunter’s Statement. Supplementing the Mayor’s statement, Mr Hunter said he was so satisfied that the 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 11s a ton had been made in the cost of coal, and in the aggregate the saving amounted to a very considerable sum. Mr Hunter said he had placed his resignation in the hands of the Labour Representation Committee, which would take whatever action was deemed advisable. He would be leaving for the North Island the following evening and would be absent from Christchurch for some time.

An Inopportune Time. In view of the near approach of the Parliamentary election and the fact that s. /en of the 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 and Councillors D. G. Sullivan, H. T. Armstrong, E. R. M’Combs, Clyde Carr, F. R. Cooke and E. H. Andrews will shortly be engaged in the election campaign and will not be able to devote much time to council business.