The Government has refined the scope of the review of Fire and Emergency New Zealand’s (Fire and Emergency) funding model to focus on improving an insurance-based levy.

The initial review focused on two high level options: an insurance-based model which would be similar to the regime legislated for in the Fire and Emergency New Zealand Act 2017 (FENZ Act), and a property-based model which would involve property owners paying a levy based on property data such as a property’s value, size or use.

Work completed on the initial review shows finding a solution that will result in significant benefits for Fire and Emergency and stakeholders is a complex undertaking.

A property-based model is costly, time-consuming and difficult to implement, as property data will need to be sourced from third parties and configured by the collection agent.

An insurance-based model, on the other hand, remains fundamentally fit for purpose, and improving the existing insurance-based model will address some of the concerns raised by stakeholders during the review. It also stands the best chance of being in place by 1 July 2024 when the new levy provisions in the Fire and Emergency New Zealand Act 2017 (the FENZ Act) are due to come into force.

The review will now focus on improving the insurance-based model in the FENZ Act.

As there are some inherent drawbacks in using an insurance-based funding model, the Department will continue working with stakeholders over the next few months to ensure Fire and Emergency is funded in a way that is as fair as possible.

Further public consultation will take place before any change to the amount of levy people are required to pay is made.

More information on the Fire and Emergency funding review can be found here: www.dia.govt.nz/firefundingreview

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