Not entirely sure why the commemoration of Sir Ed’s life should be an either/or situation. By all means name a mountain after him, but please call it Mt Ed, not Mt Hillary - wouldn't want Hillary Clinton to claim it. And please don’t spend thousands of dollars consulting with every man and his Iwi about which mountain, just do it cheaply and quickly. Acutally might be better to do this in Nepal, I'm sure they will love it.
And, have a public holiday in his honour – I don't think it need necessarily relate to any particular date, just a Friday some time in the middle of winter would be good, thus bringing much relief to workers during this long stretch without a break. Since I run my life around the Australian Stock Exchange it won't be of any benefit to me, but you can't say I don't do anything nice for you wage slaves.
As for continuing his work in Nepal, then by all means raise money to enable this work to continue. I suggest that the fundraising activity could be undertaken in the week of the Sir Ed's national holiday. But it is totally inappropriate that it comes out of taxpayers account – it is the individuals’ choice where their charity dollar is applied (or not) – it is not the governments.