Sir Tim plans to stay in the job

His Worship Sir Timothy Richard Shadbolt JP - just call me "Mayor Tim" - says his Knighthood "won't do me any harm" as he lines up a ninth term as Mayor of Invercargill.

The colourful politician spent his first day as Sir Tim answering his phone from well-wishers and a some long lost cousins, including Judge Barry Lovegrove in the Hokianga and John Parkin from his commune days.

• Panic precedes pride for new knight

"It's been a very positive reaction and quite overwhelming. I think people have appreciated the journey I have gone through in life and this is one more chapter.

"I just want to thank all the people I haven't been able to get back to. I really appreciate their support," Shadbolt told the New Zealand Herald.

Shadbolt, who has had a love affair with the southern city which is clearly mutual since making his way to Invercargill in 1993, is one of nearly 200 New Zealanders recognised for their outstanding work in this year's New Year Honours.

Other New Zealanders to be honoured included the Warehouse founder Sir Stephen Tindall, made a knight grand companion of the New Zealand Order of Merit and Olympic medalist Barbara Kendal, made a companion of the NZ Order of Merit.

Prime Minister Jacinda Ardern paid tribute to four new dames - former retirement commissioner Dame Diana Crossan, former Wellington mayor Dame Kerry Prendergast, film-maker Dame Gaylene Preston and distinguished profession Dame Margaret Brimble.

Ardern also acknowledged the work of our new knights, criminal justice advocate Sir Kim Workman, Shadbolt, our longest serving mayor, business leader Sir Rob McLeod, and paediatrician Sir Ian Hassall, the first Commissioner for Children.

"It is a special day for every one of these 196 people receiving honours. I congratulate them all and offer my sincere thanks for their contribution.''

Shadbolt told the Herald he "most definitely" planned to run for a ninth term at this year's local body elections in October.

"I have been asked if this would have an impact on the elections, the knighthood, and my response was 'well it won't do me any harm'," Shadbolt said.

At this stage, Shadbolt said first-term councillor Toni Biddle has also thrown her hat in the ring for the mayoralty and a council seat.

"It can be a strategy to heighten your profile to run for the mayoralty and to run as a councillor.