Tauranga Council Silent on Marty Grenfell Payout After Resignation

The council announced Tuesday evening that Grenfell would step down effective Wednesday, following a publicly excluded emergency meeting regarding the Davison report. The external review, conducted by retired High Court judge Paul Davison KC, examined the circumstances surrounding the January 22 landslide at a Mount Maunganui campground that killed six holidaymakers. While Davison found that no individual’s acts or omissions directly caused the deaths, his report detailed decades of missed opportunities by the council to address known landslide risks.

Tauranga MP Sam Uffindell criticized the timing and lack of clarity surrounding the exit, telling local reporters that Grenfell’s resignation should have happened sooner. Uffindell noted that Grenfell previously stated on August 19 that he was the best person to lead the organization, marking a sharp pivot in his position six weeks later.

Questions Over Payouts and Transparency

Neither the council’s public statement nor Mayor Mahé Drysdale has clarified whether Grenfell’s resignation is directly linked to the Davison report findings. When approached by Local Democracy Reporting, the council communications team stated that Tauranga City Council would not provide any further comment.

Uffindell raised community concerns regarding a potential financial exit package for Grenfell, whose total remuneration was valued at just under $600,000 in the draft 2025/26 Annual Report. He argued that local businesses and residents would prefer rates relief or community support rather than funding a substantial severance payment.

Employment lawyer Blair Scotland of Dundas Street explained that resigning employees are not required to provide reasons and can be paid out for their contractual notice periods rather than working through them. Scotland noted that additional payments can be negotiated through confidential settlements, though such practices vary widely across the public sector.

Council Meetings Held Under Legal Privilege

The emergency council meeting that preceded the resignation announcement was closed to the public under the Local Government Official Information and Meetings Act. The agenda listed only “Davison report implications,” citing the need to maintain legal professional privilege.

Elected officials have declined to answer whether the mayor or other members formally requested Grenfell’s resignation, or what specific reasons prompted his departure. Grenfell had previously been reappointed to a five-year term as chief executive in 2023.