Councillors controversial pay policy up for debate again

Councillors acting as directors of council-owned companies must donate their director's fees. Photo: Geoff Sloan
Councillors acting as directors of council-owned companies must donate their director's fees. Photo: Geoff Sloan
A policy which has divided opinion around the Christchurch City Council table in the past will return for debate in the new year.

The policy forces councillors acting as directors of council-owned companies to donate their director's fees to council funds, such as the mayor's welfare fund and the innovation and sustainability fund.

The policy only applies to councillors on the ChristchurchNZ and Christchurch City Holdings Ltd boards. It was introduced to the city council in 2013.

 

The policy was adopted last term to the disapproval of former city councillor David East and now fourth-term city councillor James Gough. Cr East called it "revolting."

City councillors are currently paid $97,280 a year. City councillors who are directors would receive an additional $55,000 if remunerated for the role.

Cr Gough, a member of right-leaning political group, Independent Citizens, said the policy was "bizarre."

"This additional work and liability would see some directors remunerated but others not when they are both expected to do the same work and take on the same liability," he said.

"I believe it’s nothing more than a touchy-feely political decision that was largely made by people who do not fully comprehend what corporate governance actually is."

Cr Gough's two Independent Citizens allies Sam MacDonald and Catherine Chu shared his sentiments.

Cr MacDonald said it wasn't about the money, but the recognition.

"In my view when you have got billions of dollars in assets and all that risk, I think there should be some form of compensation," he said.

Cr Chu said councillors should be paid for the role as remuneration plays a part in attracting quality candidates.

Independent councillor Aaron Keown said the policy was not something he believed in.

However, Deputy Mayor Andrew Turner, who is the caucus leader of the Labour-aligned political group The People's Choice, said city councillors were already paid a "decent salary."

 

The People's Choice has seven out of 16 councillors around the city council table.

Cr Turner expected all seven councillors to share his views on the policy.

"It has been my view in the past and it has always been The People's Choice view."

The policy also has the support of Mayor Lianne Dalziel.

"It is part of a councillors role to undertake these different roles and it isn’t right that those who happen to serve on the few boards that pay fees get more remuneration than their colleagues who serve on boards and committees that don’t pay fees," she said.

Independent councillors James Daniels, Phil Mauger, Sara Templeton and Mike Davidson also told starnews.co.nz they supported the policy.