The Taxpayers’ Union is today releasing a report highlighting the significant failure of Fire and Emergency New Zealand (FENZ) to realise the expected efficiency gains following the 2017 mega-merger of fire services. The report concludes
that the Minister of Internal Affairs should stop the 1 July levy increase and perform an independent examination into
the operation, management and governance of FENZ.
Key findings of the report include:The efficiency gains, expected by the 2016 Cabinet, have not materialised;Expenses have continued to increase very significantly; andSpending on consultants and professional fees have grown substantially.
The report’s author, Ray Deacon, said:
“It has become clear across multiple Taxpayers’ Union reports that Fire and Emergency has failed to deliver on its
promises and extracting an additional $85 million in levies from the domestic and commercial sectors of the economy
across each of the next two years is simply unjustified, as this report explains.
“A demand for a further 5.2% increase lacks credibility. Minister van Velden is right to question the need for this. But
the Minister needs to go much further.The 12.8% levy increase from 1 July 2024 needs to be stopped.A full and comprehensive independent post-implementation review of the actual costs and benefits of the merger needs to
be undertaken.
“It is difficult to believe that Cabinet would have approved the merger if the actual expenditure was known.”