Councillors could face inquiry for releasing documents to Echo

SENIOR city councillors have been reprimanded for speaking to the Echo and releasing financial documents and could face an internal investigation.

Cllr Rob Hannaford and Exeter City Council leader Adrian Fullam were summoned to appear before the authority's scrutiny committee to account for their actions, which led to an article appearing in the Express & Echo revealing an £11m shortage in the council's budget to pay for projects such as the proposed new swimming pool at Clifton Hill.

A copy of the council's capital budget forecast was faxed to the Echo by Cllr Hannaford, although most of the information was already in the public domain.

Cllr Hannaford and Cllr Fullam then gave statements to the Echo regarding the document.

The Scrutiny Committee voted on Wednesday night, with two abstentions, to refer the matter to a local government monitoring officer who will decide whether the matter should be referred to the regional standards committee for investigation.

Cllrs Fullam and Hannaford were asked to defend their comments, which appeared in the Echo last month citing serious concerns over the deficit.

They were also asked to explain why the budget papers had been sent to the Echo.

Cllr Jeff Coates, who chaired the meeting, said releasing the document and speaking to the Echo had serious implications.

"It is very hard to overstate the potential damage that the so-called revelations have made, particularly to the reputation of the city council," he said.

"What has happened has seriously undermined the reputation of this council and possibly brought the council into disrepute."

Corporate Service Director Glyn Bellerby said: "The alleged gap of £11.1m is simply the amount that we have to close by either borrowing or achieving further capital receipts or grant monies.

"We are no longer a debt-free authority, we are borrowing this year, but we are not in dire financial straights."

Defending his actions, Cllr Fullam said: "I don't deny the comments I made. If the press ask me a straight question, I like to give a straight answer.

"They asked me about the figures and I said it is true we have an £11m deficit

"For the first time, we are moving into a borrowing situation which has implications.

"Borrowing is an entirely legitimate way to provide services, and capital programmes are good, but in my view there has to be serious consideration into what services will be displaced to fund the borrowing.

"I said we are not happy that there have to be cuts as a result of the previous administration.

"I told the Echo if we are to fund that level of expenditure it would mean council tax increases and cuts in services. I said we are looking at all areas of expenditure.

"I said what I said, and I think it's valid."

But Cllr Fullam did say he regretted that the information had been released to the press without first consulting council officers.

He said: "The information was faxed to the Echo by one of our portfolio holders, and I find that very regrettable and that it happened under my leadership.

"It's not right or appropriate that this information should first come to the attention of members in the Echo headlines. It was an error or judgement."

Cllr Hannaford issued an apology for releasing the budgetary papers, but stood by his comments as they appeared in the Echo.

He said: "It is with great regret that I released budget papers to the Echo about the council budget.

"Despite the fact that most of this information was already in the public domain, I should have realised that some of those details were confidential.

"I apologise sincerely for my actions but I hold my hand up to making those statements in the Echo on August 23.

"I'm not prepared to resign for telling the truth.

"It is not good enough for members of the city council to blame the Express & Echo for their financial position."