Drivers that rely on ‘third party, fire and theft’ insurance policies will be paying more from mid-2017, but the AA isn’t convinced.
Rural and urban fire brigades will be merged into one organisation, with a $303m change into a single entity to be completed over the next four years, internal affairs minister Peter Dunne has announced.
Dunne said the fire levy, collected from vehicle, property and contents insurance will fund the new organisation, called Fire and Emergency New Zealand.
Drivers with third party policies had not had to pay the levy through their policies, despite the Fire Service being required to attend thousands of vehicle accidents each year.
But this will change next year.
“It’s a recognition of the fact that one of the criticisms of the existing fire levy is that householders pay a levy, but why is a householder paying to fund someone who is extricated from a motor vehicle for instance?” Dunne says.
“We felt it was appropriate to put those charges where they might properly fall.”
The Automobile Association says people with no insurance would still “freeload” from the Fire Service – something which could have easily been fixed.
“There were other places where the levy could have been put, on road user charges and on excise tax – or indeed on the registration, which would have made sure that nearly everybody was paying their fair share.” said the association in a statement.
“The way it has been announced, there will be some people who are freeloading.”
