• Lindsay McKenzie starts as Wellington City Council’s Crown observer today, earning $1000 a day. 
• McKenzie will work two to three days a week, flying between Nelson and Wellington, with travel expenses covered by the council. 
• Wellington Mayor Tory Whanau previously said it was “frustrating” that her council had to cover the cost. 

Wellington City Council’s Crown observer starts today, and the Terms of Reference document show he will be paid $1000 per day. 

Lindsay McKenzie has been appointed to the role and says he expects to work two to three days a week. 

When the appointment of an observer was announced, Wellington Mayor Tory Whanau said it was “frustrating” that the “unexpected cost” had to be met by the council. 

Whanau also said at the time she was waiting on advice as to whether she could ask the Government to foot the bill. 

McKenzie, a former chief executive of the Tasman and Gisborne district councils, was announced as the observer this week. 

Lindsay McKenzie has served as interim chief executive at Nelson City Council and CEO of Tasman District Council. Photo / Supplied 

Local Government Minister Simeon Brown said McKenzie had significant governance and senior leadership experience in local government. 

“My assessment is that the financial and behavioural challenges facing the council represent a significant problem,” Brown said. 

Whanau previously welcomed the Government’s move to appoint an observer. 

She said the minister had fairly pointed out examples where councillors had walked out of meetings and she acknowledged the council had tough decisions ahead. 

“We must do better,” she said. 

McKenzie’s term will finish at the end of July 2025 or earlier if appropriate. 

He told the Herald the role would be parttime and he plans to work two to three days a week. 

McKenzie said he expects to work more as he gets set up, but believes things should settle after the holiday break, when he will start working an average of two days a week. 

He will fly from Nelson for the job, with travel expenses also to be paid by the council. 

Wellington Mayor Tory Whanau speaks to media after the Government appointed a Crown observer to the city's council. Photo / Mark Mitchell 

The Department of Internal Affairs, which manages government intervention in local government, said $1000 is the set rate for a Crown observer. 

“The Crown Observer is responsible for ensuring any expenses claimed are reasonable and necessary”, its local government policy states. 

The Department of Prime Minister and Cabinet sets out the daily rate and states a working day is “about 8 hours”. 

“Where a total of 6 hours is worked in one day, a daily fee may be paid.” 

In Tauranga, where four commissioners replaced the mayor and councillors between February 2021 and July 2024, the commission chair was paid $1800 per day and commissioners $1500 per day. 

Local Government Minister Simeon Brown said he doesn’t expect the observer role to be a full-time job for McKenzie. 

“I anticipate that his time commitment will initially be higher as he meets with councillors and staff to build up a strong understanding of the issues the council faces and how he will address them.” 

He told Newstalk ZB yesterday McKenzie would sort through the “dysfunction between personalities” at Wellington’s council and will help the mayor and councillors to “get on”. 

Local Government Minister Simeon Brown. Photo / Mark Mitchell 

He said McKenzie would provide external advice and assist with a fresh pair of eyes, though it’s up to the council whether it follows the Crown observer’s guidance. 

“[He]… has not been part of all the drama over the last little while and can provide an extra set of advice.” 

The Government sought advice on possible intervention after the council stopped the controversial sale of its 34% share in the airport — upending the Long Term Plan (LTP). 

The council now has to amend the LTP and possibly cut hundreds of millions of dollars in capital spending to create additional debt headroom to respond to the insurance risks the airport sale was designed to solve. 

Ethan Manera is a multimedia journalist based in Wellington. He joined NZME in 2023 and is interested in local issues, politics and property development in the capital. Ethan is always on the lookout for a story and can be emailed at [email protected].