Consultation on a proposed increase to the Fire and Emergency transistional levy for 2024/25 and 2025/26Last updated: April 27, 2023
Consultation on a proposed increase to the Fire and Emergency transistional levy for 2024/25 and 2025/26
Published: April 27, 2023
Submitting To: Fire and Emergency New Zealand (FENZ)
Issue for Business: Fire and Emergency New Zealand (FENZ) is proposing an increase of 12.8% in the transistional levy component across all levied insurance policies for the 2024/25 and 2025/26 financial years to pay for the significant cost increase largely resulting for the new collective employment agreement settled in December 2022 between Fire and Emergency NZ (FENZ) and the NZ Professional Firefighters Union (NZPFU).
Action: BusinessNZ has made a submission to FENZ recommending that given the significant public good aspects of many of the services provided by the FENZ, the total cost increase in the transitional levy, forecast for the financial years 2024/25 and 2025/26, be funded from general taxation, partially compensating for the significant shortfall in FENZ's current government funding.
Outcome: FENZ are currently analysing submissions but is likely that they will proceed with their proposed policy rather than look at new funding mechanisms simply because they have discounted other methods of funding -despite the deficiencies associated with current funding methods.