Key Takeaways
- Tauranga City councillors have the highest minimum allowable remuneration in New Zealand, at $123,516 annually
- This amount is higher than that of larger cities, including Auckland, Christchurch, and Wellington
- The Remuneration Authority sets the remuneration for councillors, taking into account the council’s governance remuneration pool, number of councillors, and individual councillor work commitment
- Tauranga Mayor Mahé Drysdale believes that ratepayers are getting good value for money from their elected members, despite criticisms from the Taxpayers Union
- The council’s chief executive is also among the highest-paid in New Zealand, with a remuneration package of over $600,000
Introduction to the Controversy
The recent revelation that Tauranga City councillors have the highest minimum allowable remuneration in New Zealand has sparked controversy and debate. According to the Local Government Elected Members Determination 2025, Tauranga City councillors are set to earn a minimum of $123,516 annually, surpassing the remuneration of councillors in larger cities such as Auckland, Christchurch, and Wellington. This has led to criticisms from the Taxpayers Union, which argues that the high pay is unjustified and disrespectful to ratepayers.
The Remuneration Authority’s Decision
The Remuneration Authority, which sets the remuneration for councillors, has explained that the minimum allowable remuneration for Tauranga City councillors is higher due to the smaller number of councillors and the resulting higher work commitment. The authority takes into account the council’s governance remuneration pool, number of councillors, and individual councillor work commitment (CWC) when determining the minimum remuneration. In the case of Tauranga City Council, the authority has rated the CWC as 0.9, indicating a part-time commitment. However, the authority acknowledges that assessing the CWC can be challenging and that the rating may not be perfectly accurate.
Criticisms and Counterarguments
The Taxpayers Union has criticized the high pay, arguing that it is unfair to ratepayers and that councillors should pay back salary increases until council costs are under control. However, Tauranga Mayor Mahé Drysdale has defended the remuneration, stating that councillors work hard and take their responsibilities seriously. He believes that ratepayers are getting good value for money from their elected members, citing the council’s prudent financial management and decisions that have saved ratepayers tens of millions of dollars.
The Council’s Financial Management
The Tauranga City Council has confirmed a 9.9% overall rates increase in the 2025/26 Annual Plan, down from the 20% initially proposed. The council has also overseen significant assets and managed substantial annual spending and investment. Mayor Drysdale has emphasized the council’s focus on prudent financial management and its commitment to delivering long-term benefits for the growing community. However, the Taxpayers Union remains skeptical, arguing that the high pay for councillors is a symptom of a larger problem of inefficient council spending.
The Chief Executive’s Remuneration
In addition to the high pay for councillors, the Tauranga City Council’s chief executive is also among the highest-paid in New Zealand. The 2024/25 Annual Report revealed that the chief executive’s remuneration package included a salary of $599,433, employer contributions to superannuation schemes, and a car benefit. This has raised further questions about the council’s financial management and the value for money that ratepayers are receiving. While the council has defended the chief executive’s remuneration, citing the need to attract and retain top talent, critics argue that the high pay is excessive and unjustified.
Conclusion and Future Implications
The controversy surrounding the high pay for Tauranga City councillors and the chief executive highlights the need for greater transparency and accountability in local government. As the council continues to manage significant assets and make important decisions about spending and investment, it is essential that ratepayers are assured that they are getting value for money. The Remuneration Authority’s decision to set the minimum allowable remuneration for Tauranga City councillors at $123,516 annually has sparked debate and criticism, and it remains to be seen how this will impact the council’s relationships with ratepayers and the wider community.