Manukau councillor Efeso Collins accused staff of racial discrimination at Tuesday night's swearing in ceremony at Auckland Town Hall.
Collins said his wife, four-year-old daughter and elders were initially told that they could not sit where they were because it was reserved for council guests. When his wife said they were guests, no-one believed them, he told Radio New Zealand.
"The fact that we don't look 'normal', and that's the problem - too many people offering the suggestion, which is essentially racially discriminatory, that brown people don't belong there.
"If I'm still being challenged like that now you can imagine what the experience of the very people I'm representing are every day when we are confronted with this type of thinking," RNZ reported.
Mayor Phil Goff told the Herald today he was incredibly concerned to hear about the incident and had passed on his concerns to Collins.