Crown Observer will cost Wellington City ratepayers $1000 a day

Wednesday, 13 November 2024

Wellington Mayor Tory Whanau reacts to plan to have a Crown observer

The Wellington City Council Crown observer is being paid $1000-a-day, meaning his salary will churn through an average home’s annual rates payments for every seven days on the job.

Local Government Minister Simeon Brown this week announced Lindsay McKenzie would be his eyes and ears over the troubled council, with 11-term National MP Nick Smith, now mayor of Nelson, confirming it was him who floated McKenzie’s name.

McKenzie, who said he saw the fly-in-fly-out job as a two-day-a-week gig for which he would commute from his Nelson home, on Tuesday told The Post he was proudly “politically agnostic”.

Meanwhile, the terms of reference for McKenzie show the council has to pay him $1000 per day. That means in seven days of working he will be paid the same amount a $1.4m Wellington home pays in rates each year.

Local Government Minister Simeon Brown, left, earns $296,000 a year with the Crown Observer he has appointed to the Wellington City Council, Lindsay McKenzie, on $1000 per day, which equates to up to $260,000 a year depending on how many days he works. Wellington mayor Tory Whanau is on a $189,000 salary.

A large part of the reason for Brown appointing an observer came down to council spending.

After the council recently voted to keep its 34% stake in Wellington Airport, it has to amend its long-term plan and make up the money the sale would have made. It has just eight days from Wednesday to figure out what it plans to spend on and what spending it wants to cut with everything from a Golden Mile revamp to saving a pool to a skate park all in jeopardy.

Brown announced he was going to install an observer soon after the council voted to keep its airport shares but also due to “recent incidents such as walk-outs, refusal to participate in votes, and representatives engaging in repeated public criticism of one another and council staff”. It took him 20 days to appoint McKenzie, who starts in Wellington on Wednesday.

Lindsay McKenzie came recommended by former National MP Nick Smith.

The $1000-a-day fee, outlined in a Department of Prime Minister and Cabinet publication, assumes and minimum six hour work day with part days paid pro-rata.

McKenzie will work until July 31 or earlier if appropriate.

New Zealand has 260 working days a year, meaning he will earn the equivalent hourly rate of a $260,000 salary, making him better paid than Mayor Tory Whanau, who has a $189,000 salary, but puts him at half the pay of council chief executive Barbara McKerrow who is on a $513,970 salary. Brown, who is imposing an observer on the council, has a $296,000 salary.

City councillor Diane Calvert said, given the money the council had wasted on a $550,000 bike rack and associated infrastructure and $1.4m spent on moving two bus stops, McKenzie’s pay was “value for money if he is able to help the Council curb its expenditure”.

No other councillor nor mayor commented on his pay and all were also asked about having a long-time National MP having a role in his appointment.

Only councillor Sarah Free responded. She said she was pleased McKenzie had local body experience.

Brown, in emailed statement on Tuesday, said he looked for the “right skills, experience, and availability to work closely” with the council.

“Mr McKenzie’s name was included on a list of potential candidates from the Department of Internal Affairs that had the right mix of capabilities for this appointment,” he said. DIA organised the appointment process.

“The Mayor of Nelson had also recommended that Mr McKenzie be considered for the role, as he believed he had the right experience and attributes.”