Wellington Chamber of Commerce
Media Statement
Thursday 30th March 2017

Fire Service levy rise could have been avoided, says Chamber

The increase in Fire Service levies announced today could have been avoided had the Internal Affairs Minister listened to business and the insurance industry, says Wellington Chamber of Commerce Chief Executive John Milford.

“The increases will mainly hit low-income consumers, and they will hit businesses, which will not have a cap on levy increases on their insurance policies like domestic policies will.

“If there’s a backlash over this, Minister Peter Dunne has only himself to blame.

“Business has said all along that the money to run the new Fire and Emergency NZ should come from general taxation because all New Zealanders benefit, not just those who pay insurance.

“Funding from general taxation would have ensured all taxpayers were contributing to something they are benefiting from, would have removed the confusing legislation that has given rise to possible levy minimisation, would have been highly cost effective because the government would have used existing tax collection systems, and would have been relatively stable and predictable compared to an insurance levy.

“In addition, funding decisions would have been subject to Treasury scrutiny, potentially increasing Fire and Emergency NZ’s accountability and efficiency.

“But maybe there’s just too much logic there.

ends

© Scoop Media