'Appalling look': Councillors slam proposed 33% hike to Watercare director fees

Author: Lane Nichols,
Publish Date: Thu, 30 Jul 2026, 2:43pm

Auckland councillors have baulked at a proposal to hike Watercare director fees by 33%, which has been labelled an “appalling look”.

The proposal was contained in a paper prepared by council staff and presented at today’s Auckland Council’s Appointments and Performance Review Committee.

The paper took councillors by surprise and earned a stern rebuke from committee chairman Daniel Newman, who labelled the fee hike an “appalling look”.

Newman said the paper was added to the meeting agenda “without consultation”.

It also included 18% pay increases for directors at Tataki Auckland and the Public Transport council owned organisation.

The proposals would see Watercare director fees jump from $56,160 to $75,000, and other director fees from $56,160 to $66,440.

Newman fired off a media statement saying the proposed increases were “not acceptable to elected members”.

“I had that paper withdrawn and expect a new paper to be submitted, which contains advice on, at best, dramatically lower increases,” Newman said.

“While the Government has increased fees for 22 Crown-owned companies and statutory bodies by between 80 to 104%, I don’t support anything like what was proposed for our council-controlled organisations.

“I encourage the council to rethink its approach and not be overly influenced by what central government does when it comes to directors’ remuneration,” Newman said.

Other councillors on the committee are understood to have supported Newman’s motion.

The Herald has sought comment from Auckland Council.

Newman told the Herald the fee hike proposal was a “head exploding moment” and completely unacceptable.

If staff did not amend the proposed pay hikes they would be voted down by councillors.

“Back on planet earth people are having to live with the consequences of high living costs and increases in the region of 33 and 18% are just not realistic.

“Either officers will recommend a very much lower increase or councillors will vote through a very low or no increase,” Newman said.

Staff had justified the increases on the basis of market pay rates, the complexity of the roles and pay rates for central government directors.

Newman said he earned about $140,000, which he said he was “not grizzling about”.

He noted his pay was for a fulltime role and councillors’ annual pay increases were much more modest than that proposed in today’s paper.

Lane Nichols is Auckland Desk Editor and a senior journalist for the New Zealand Herald with more than 20 years’ experience in the industry.