Minister Brooke van Velden has asked the Department of Internal Affairs to examine alternative, more efficient ways of funding Fire and Emergency New Zealand.
“95% of Fire and Emergency’s income is collected from levies on property insurance protecting against the risk of fire,” Van Velden said.
“The Fire Service levy was introduced in 1975 and, despite changes to the core services FENZ delivers, is still the funding model used today.”
“The Fire and Emergency New Zealand Act 2017 added a number of non-fire-related functions for FENZ to perform, such as responding to medical emergencies, maritime incidents, and severe weather events and disasters.”
“Given the widened mandate, there is a valid question about whether this model is fair for levy payers and fit for purpose.”
From 1 July 2025 to 31 March 2026, recorded data shows that only 59% of Fire and Emergency New Zealand’s responses were for actual fire incidents, with a portion made up of false alarms and other non-fire callouts.
“Given the significance of the levy, it is timely to consider whether its design and operation remain appropriate or whether improvements are possible.”
A longstanding concern with the current model is “free-riding”, where some property owners choose not to take out insurance but still benefit from Fire and Emergency New Zealand’s services.
The Department of Internal Affairs is expected to consult with key stakeholders and assess concerns with the existing system, alongside exploring alternative funding models for Fire and Emergency New Zealand. The review will also consider the practicality and implementation challenges of any proposed changes.
Van Velden said it is important that the revenue used to fund Fire and Emergency New Zealand is reliable, fit for purpose, and future-proofed.
“This work will give us greater understanding about whether insurance is the only feasible collection method or if there are other practical alternatives. I look forward to seeing feedback from the targeted consultation.”
This work will not impact the newly set levy rates, which are locked in for the next three years from 1 July 2026.
Instead, it will serve as an evidence base to inform any future review of the regulatory or legislative framework governing fire and emergency funding and service delivery.