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A funfair boss is demanding action after he says a council employee used a 'racial slur'.
The exchange happened as one of his posters was being taken down.
Carlos Christian, who runs Iwade-based Smiths Family Funfairs near Sittingbourne, was setting up at Cliffe playing fields near Strood when he spotted the sign being removed from a post.
Mr Christian, 36, said: "I stopped the truck and demanded to know who the man was and what authority he had for taking down my billboard.
"He refused to identify himself so I went to get my billboard."
During a scuffle, Mr Christian claims the official, who later admitted he was from Medway Council, raised his voice in a dispute.
He allegedly used a racial slur, telling him it "doesn't mean you can do what you like".
Mr Christian, a father-of-two, said: "I was disgusted. I am not a gypsy. I am a travelling showman.
"But even if I was a gypsy, he had no right to use that sort of language. He is prejudiced. This guy has no place at the sharp end dealing with the public and representing Medway Council.
"To say I am outraged is an under-statement. I wonder if he has behaved like this to other minority groups?"
The clash happened at 5pm on Thursday on the road leading to Cliffe Woods. Mr Christian was returning to the fairground site with his father-in-law Tommy Smith.
Police were called to deal with an alleged public order offence.
Police spokesman James Walker said: "Police received a report at 5.36pm which stated a dispute had taken place between two men in Town Road, Cliffe Woods.
"During the dispute, one of the men is reported to have racially abused the other.
"Officers have recorded the details and initial inquiries are under way."
A Medway Council spokesman said: “We are aware of a disturbance while one of our officers removed promotional material which had been illegally fly-posted on a highways directions sign in Cliffe Woods.
"The safety of our officers is paramount and we have measures in place to ensure their welfare while they carry out their duties.
“We take reports of inappropriate behaviour against them extremely seriously and we will be fully assisting the police with their ongoing enquiries.”
Travelling shows, like fairs and circuses, can get permission to put up temporary posters on condition they are taken down immediately after the event.
Mr Christian said: "I am not complaining about him taking down my sign, just his behaviour and language. It was totally unacceptable.
"He was so rude and prejudiced. Imagine if he had said something similar to a black man or a woman?
"The council should do something about this. It made me feel upset and angry."
The funfair was at Cliffe over the weekend. Before that, it had been at Barton's Point Coastal Park, Sheerness.