New Zealand reviews funding model for Fire and Emergency services

Internal Affairs Minister Brooke van Velden announced that the Department of Internal Affairs will examine alternatives to the insurance‑levy system that currently funds Fire and Emergency New Zealand (FENZ). About 95% of FENZ’s $800 million annual budget comes from levies on property and motor‑vehicle insurance premiums.

The Insurance Council of New Zealand said insurers have long questioned whether the levy is the most appropriate mechanism, warning that it adds pressure to insurance costs and could affect affordability. ICNZ chief executive Kris Faafoi said the model “relies on a levy applied to insurance premiums… insurers have long questioned whether it remains the most appropriate way to fund such a core public service.”

Federated Farmers and the Forest Owners Association have also written to the minister, urging a broader review. Vice‑president Colin Hurst argued that rising levy costs and perceived declines in rural fire‑service resources mean farmers risk subsidising urban areas, stating, “We deserve assurance that farmers and rural businesses aren’t subsidising the urban residential sector.” The groups want the review to assess both the fairness of the levy and the quality of services delivered to rural communities.