Christchurch Mayor Lianne Dalziel defends a proposal to spend $1m to provide mental health support to Cantabrians.

Christchurch Mayor Lianne Dalziel is defending a proposed $1 million spend on mental health support for Cantabrians.

At a council meeting to approve the 2016-17 budget, Dalziel said the initiative was a "fantastic opportunity" to work with the central Government over the city's wellbeing and resilience.

"I welcome it," she said.

"We are still a city that has requirements for psychosocial wellbeing."

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The council has come under criticism for proposing to spend money on something that was not core business.

But Dalziel said the money would replace the $1m the previous council decided to take from the Christchurch Earthquake Mayoral Relief Fund to help fund the earthquake memorial.

Dalziel criticised the former council's decision, saying she could not understand it.

"It doesn't make sense to me, maybe they didn't realise they did it."

She said people from all over the world donated to the fund after the earthquakes to help rebuild the social wellbeing of the community, not to fund a memorial.

Dalziel said she started working last year to get the money reinstated to the fund, but it had already been transferred.

The council was now proposing to take that money from the participatory democracy budget.

Health Minister Jonathan Coleman signalled the new partnership fund in March, when he announced an increase of mental health funding for Canterbury.

The Government would match the council's contribution, by up to $1m a year for three years.

The council is expected to approve the annual plan on Thursday.