Wellington council will have to pay for Crown observer out of its own coffers

Tuesday, 22 October 2024

Councillors Diane Calvert and Ray Chung react to news the Government is appointing a Crown observer to the Wellington City Council.

As the Government moves to appoint a minder for Wellington City Council’s elected members and staff, it can now be revealed that the council will also have to pay for the privilege.

A terms of reference document handed to the council by Local Government Minister Simeon Brown’s office, and leaked to The Post, states that the Crown Observer will charge a daily rate and can claim expenses.

It’s understood that they will be drawing the equivalent of an approximately $200,000 salary.

Brown’s rationale for appointing the observer was “significant financial challenges”, including $2.6 billion in “under insurance”.

The Crown Observer won’t technically have decision making powers, but they will have a suite of powers that will help guide an outcome, the terms document shows

Local Government Minister Simeon Brown’s terms of reference will give the Crown observer a suite of powers that will help guide an outcome.

The observer is there to “provide guidance” to both elected members and senior staff, it says.

It appears that a lot of that will have to do with what information councillors are presented with to make decisions.

The terms require the observer to ensure staff are giving councillors “high quality advice”.

They can also draw on the Department of Internal Affairs or “other parties”, possibly consultants, that they consider necessary to fulfil their role as observer.

That role is primarily to ensure that the 2024-34 Long-Term Plan is “sustainably” delivered and meets obligations to ratepayers.

The terms state they must ensure the mayor [Tory Whanau] is “able to provide leadership” to other elected members.

The observer will be attending all official council meetings and will be able to call elected members and senior staff into private meetings.

The terms say that the council is required to reply with “any reasonable request to provide relevant information” and “make available and accessible the resources required” to fulfil their role.

It’s possible that the observer may also be something of a referee, with terms stating they must ensure the Mayor is “able to provide leadership” to other elected members.

“The impact of inaction or ineffective action will be significant, and it is unclear whether council members can effectively work together, and with council staff,” the document says.

“Recent council meetings have seen councillors walk out, refusing to participate in votes, and confusion regarding decisions, amendments, and voting. Councillors have also made repeated public criticism of one another and council staff.”

According to the terms, this may not be the end of intervention by central government.

The observer is empowered to “make recommendations as appropriate” to Brown on whether he should take further action.

“[This] includes whether the minister should appoint another ministerial body to provide assistance,” the terms say.

The observer will be making monthly reports to the minister, and is expected to present and interim report by the end of February next year.

Their tenure will begin once a notice has been published online, and is currently expected to last until July next year.