When Fire and Emergency New Zealand has approached the government for an increase in levies, what was the methodology used to indicate need?

Answer

Fire and Emergency most recently sought an increase in levies in 2024 through the statutory consultation process for setting new levy rates under Part 3 of the Fire and Emergency Act 2017. Supporting material, including a Cost Recovery Impact Statement outlining the methodology, financial assumptions, and the impacts of alternative revenue scenarios, is publicly available on Fire and Emergency’s website. I am advised that revenue projections under the status quo assume annual levy-base growth in line with historical trends, driven by inflation and increases in insured property values. Estimated future costs reflect NZPFU settlement impacts, wage and cost inflation (based on Treasury forecasts), and a growing capital programme to address asset depreciation. I am further advised Fire and Emergency holds sufficient reserves to meet working capital needs, maintain a liquidity buffer to manage the timing of levy payments, and cover the potential costs of a significant adverse event.