The appointment of two external appointees at the Invercargill City Council (ICC) will cost ratepayers $730,000 – $1500 a day – if they are needed until June 2022, an ICC council report says. 

Last month, the council resolved to appoint two external appointees for a period of up to 18 months to provide guidance and advice to elected council members.

The decision came following advice from independent evaluator Richard Thomson. 

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In his thorough investigation into the standard of governance at the ICC, Mr Thomson found there was a significant “leadership void,” within council and dysfunction among councillors. 

He said some councillors described the atmosphere around the council table as “toxic” and found that the effect of having a fourth deputy mayor in just four years had created a sense of disharmony around the council table. 

The Richard Thomson report came at the request of the Department of Internal Affairs in August, after reports of growing conflict at council surfaced in the media. 

One of the recommendations to the council was to appoint two external appointees to provide guidance and advice to elected council members, as well as the chief executive and the executive leadership team.

The external appointees will not have decision-making powers, they will operate as mediators to help elected members in making decisions and working cohesively as team.

The two appointees – who are yet to be named – will officially begin their new roles from January 1, for a term of up to 18 months. 

They will each be paid $1500 per day or $200 per hour, with the cost this to be paid out of the budget signed off by the council on November 12.

There will be two review periods – June 30 and December 30, 2021. 

The report states that the terms of their appointment may be shortened at either of those review periods, if the full council and the external appointees agree that one or both is no longer required. 

Extent of Authority 

The appointees will attend most meetings and workshops and sit at the council table. 

They will help to ensure that elected council members are able to function as a governing body, the mayor, deputy mayor, and committee chairs are able to provide leadership to other elected members and the Council organisation. 

They will make sure elected members can properly carry out their local governance role, have the capability and knowledge to make decisions effectively; and are able to work effectively with the council chief executive Clare Hadley as well as the executive leadership team. 

Appointees will also contribute to the Long Term Plan (LTP) process and any other key decisions.

One of the external appointees will be expected to Chair the Governance group which is being appointed to oversee the implementation of the review recommendations. 

“He or she will be expected to sign off reports which will go to Council and also to the DIA,” the report reads.

It’s expected that one appointee will also chair the weekly Chairs’ meeting. 

The ICC expects the appointees to form a view on the council’s ability to provide effective governance for the community and report back as necessary.

If they deem the council to still be dysfunctional, further action through the Local Government Act (LGA) 2002 will be considered. 

A drastic outcome, which is rare but not unheard of, is where the Minister of Local Government will use their powers to appoint a ‘Crown Observer,’ if they deem a council to still be underperforming. 

The crown observer would assist the council in addressing its problems and report back to the Minister on its progress. 

Environment Canterbury had a crown observer appointed to it in 2009 and Kaipara District Council had one appointed in 2012.

For extremely dysfunctional councils, the minister can also use their powers to replace a council with a commissioner, under the Local Government Act.

However, the ICC has stated that it is committed to resolving its issues through the Action Plan which includes the appointment of two external appointees. 

The appointees may also make recommendations to the mayor and councillors on whether further action is required to assist the council. 

“The External Appointees must ensure, as far as practicable, that the existing organisational capability of the Council is not diminished,” the report says.