Christianity was in a troubled state but there were signs of hope, retired bishop, the Rt Rev Richard Randerson, of Wellington, told those attending a vicar's induction at All Saints' Church in North Dunedin on Saturday.
Bishop Randerson said the Roman Catholic faith was "torn" over the sexual abuse scandal, while the homosexual debate was dividing the Anglican Church.
To the media, Christianity was often little more than a joke, an irrelevant institution on the sidelines, he said.
However, a sign of hope was media commentators having recently called for respect for churches' good works.
Also, Bishop Randerson had been asked to speak at two conferences, one for scientists, and the other for landscape architects, who were seeking guidance on ethical and spiritual matters.
He sensed in society a search for spirituality and a resurgence of a quest for meaning.
Into this challenging environment stepped Mr Wallace, Bishop Randerson said.
Mr Wallace acceded to a "rich heritage" at All Saints'.
Crucially, he had the opportunity to shape young minds - and future leaders - as chaplain to Selwyn College.
The former Otago University student was on "home turf", he said.
Bishop Randerson had fond memories of his own time studying at Selwyn College.
Mr Wallace (39) has returned to Dunedin from Geneva, Switzerland, where he was general secretary of the World Student Christian Federation since 2004.
He is married to Julanne Clarke-Morris, with whom he has three children, Ewen (6), Finlay (3), and a baby, Theodora, who was born in September.
Both Mr Wallace and his wife had attended the University of Otago.
