The news Christchurch City Council's chief executive, Tony Marryatt, has rejected his $NZ68,000 pay rise as too little too late for some Christchurch locals, who are demanding his resignation.
Mr Marryatt announced on Friday he had instructed the council's payroll office to stop paying him his 14.4 per cent pay rise, which took his salary from $NZ470,400 to $NZ538,529 a year, effective from July 1, 2011.
Mr Marryatt says his decision is "based on what's best for the council and its staff".
His announcement came after Canterbury Earthquake Recovery Minister Gerry Brownlee and Local Government Minister Nick Smith held crisis talks with city councillors on Friday to resolve divisions on the council.
Mr Marryatt has pledged to pay back the $34,000 he's received to date, if councillors honour the commitment they made on Friday to "work together collegially".
"If they can be true to this commitment, I will make a similar commitment in the same spirit of good faith."
Mayor Bob Parker welcomed Mr Marryatt's decision, calling it "a gesture of tremendous faith and belief in the council and our desire to work together".
However, locals unhappy about the pay rise still plan to protest outside the council's offices on Wednesday.
No Payrise For Tony Marryatt protest organiser Peter Lynch told Fairfax NZ the group wants Mr Marryatt to pay the money back.
"I can't believe that is all he has done ... He should've been fired."
Wider Earthquake Communities' Action Network spokesman Reverend Mike Coleman wants Mr Marryatt to step down.
"He had to be told to turn down the pay rise. That's the kind of integrity that this man has."
The council agreed on Friday to the appointment of former Nelson City and Tasman District mayor Kerry Marshall as a Crown observer to help address governance issues and rebuild public confidence, following the pay debacle.
"The role of the Crown observer will be to rebuild good professional relationships between the mayor, councillors and staff and to provide guidance on how they can effectively govern at this challenging time," Local Government Minister Nick Smith says.The Oscars: Who will win? Yahoo! Entertainment
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