Minister of Internal Affairs Peter Dunne has responded to criticisms thrown at the Fire and Emergency New Zealand Act.
The new legislation, which was passed by Parliament last week, brings together NZ’s patchwork of fire services into one national organisation – the Fire and Emergency New Zealand (FENZ).
Dunne addressed the two issues raised in the critical piece
“Fire service reform will create new problems” by Taxpayers’ Union’s Mac McKenna - higher costs brought by the merger and the “unfair” levy on insurance for funding the service,
New Zealand Herald reported.
Speaking about the funding scheme, Dunne said the insurance levy “has the great benefit of being a long-standing arrangement in this country,” and does not pose a “free riding” problem to Kiwis as 95% of houses in NZ are insured. He also said that other funding options have been explored, including local property tax, which exempts many properties from rates.
“We will have a more transparent levy system as a result of this legislation,” Dunne said, as the “levy rates will be consulted on and reviewed every three years.”
“Transparency will extend to how the amount of levy collected on different kinds of property relates to the costs of activities and responses associated with that type of property. So, for example, the public will be able to see that the levy collected on motor vehicles will cover the costs of responding to motor vehicle incidents - no more, no less.”
Dunne conceded that the current levy system is “somewhat of a blunt instrument” when it comes to how it treats lower-risk and high-risk property, the report said.
“We are seeking to address this through regulation, without making the system overly complex. Over time I expect to see a more nuanced system which recognises that lower-risk property should attract a lower rate of levy, and vice versa,” he said.
Regarding the cost of reform, Dunne said as one of the most significant public reforms, “the process needs to be adequately funded” for it to succeed.
“It is about ensuring that every brigade, large or small, volunteer or career-staffed, is well trained and equipped, and that every New Zealander can feel confident they are getting the best possible fire and emergency response in their area,” Dunne said.
Dunne added that the reform will shore up support for and recruitment of volunteer firefighters; and address under-investment in rural fire, estimated to cost to up to $30 million per annum.
The minister said the reform will do the country good in the long run.
“Efficiencies and economies of scale will be found over time. I expect FENZ expenditure to be higher than usual for the next three years, and thereafter we expect to see efficiencies,” he said.
“However we are not rushing to cut costs on day one, as Mr McKenna would like to see. Change needs to be evolutionary to give time to new initiatives to bed in, for cultural issues within different organisations to be addressed, and critically to ensure there is no interruption of frontline services.
“Mr McKenna and those of similar ilk miss the point about the breadth and scale of this reform. Sadly, they seem unwilling to make any attempt to learn,” Dunne concluded in the
NZ Herald report.
Related stories:
Broker highlights problems with new fire levy system
FENZ changes will raise underinsurance levels
FENZ actions “beggars belief” - ICNZ
