A new organiser is being sought for the Nelson Santa parade after organisers quit following the Māori Santa backlash.

Nelson councillor Gaile Noonan said a new organiser for the parade would be announced this week.

The Nelson Santa Parade Trust has stepped down after last year's Māori Santa controversy.

The resignation of the Nelson Santa Parade Trust was announced at Thursday's Community Services Committee.

Councillor Brian McGurk asked if the Santa Parade Trust's decision to stop operating the Santa Parade was a "fallout from the incidents last year." 

Noonan, who is chair of the committee, said councillors could "come to that conclusion".

"If you were running it and you had the flak that they had to undertake when they're a voluntary group ... well I'd be doing exactly the same thing," she said.

McGurk agreed. "Yeah, I'd have to say that the response is not unexpected."

The backlash from last year's Santa Parade, which featured Hana Kōkō, is behind the Nelson Santa Parade Trust's decision to step down.

In the 2018 parade Santa's traditional red and white garb was replaced with a red korowai (Māori cloak). The trust's decision to replace their traditional Santa Claus with Hana Kōkō was criticised by some Nelson residents and parents who said it distressed their children not to see a traditionally dressed Santa.

Community Arts Works Trust designed the costumes and art for the parade. 

A new organiser for Nelson' Santa Parade is expected to be announced this week.

Faye Wulff, of Community Arts Works Trust, said outside the meeting the trust would continue its tradition of having a float in the parade, but it was not yet sure what its involvement in this year's parade would be beyond that.

Nelson Santa Trust chair Roger Wilson said the the previous organisers would be "giving lots of assistance to the new coordinators" and "a lot of thought" was going into the future organisation of the parade. 

Prior to last year's parade the NCC approved $15,000 per year from 2018-2028 in funding from the CBD Enhancement Fund for the annual parade.

The council has been seeking an alternative provider for the parade. Quotes were sought from a range of event coordinators. Noonan said the council was currently in negotiations with the preferred organiser and its identity would be announced next week.