The Public Service Association (PSA) has called on the New Zealand government to intervene in Fire and Emergency New Zealand’s (FENZ) proposed cost-cutting measures, which include a significant reduction in non-firefighting staff and a 10% decrease in annual expenditure. The PSA’s concerns come as the government finalises a moderated increase to the FENZ levy, a move that will affect both the agency’s funding and the insurance sector’s financial planning.
The government has capped the FENZ levy increase, which is collected through insurance policies on property, vehicles, and contents, at 2.2% for July 2026 – down from a previously proposed 5.2%. Internal Affairs Minister Brooke van Velden said the choice was intended to address funding requirements while avoiding excessive financial strain on New Zealand residents. FENZ has also been directed to identify $60 million in savings over the next three years.
According to the PSA, FENZ staff were recently presented with a 260-page consultation document outlining plans to cut 13% of non-firefighting roles nationwide. Employees have been given two weeks to provide feedback before the new structure is confirmed ahead of the Christmas period.
Fleur Fitzsimons, national secretary for the PSA, said: “The government must step in and stop these short-sighted cuts – FENZ is telling its workers to do more with less, which will impact FENZ’s ability to deal with emergencies and prevent future emergencies.” The PSA highlighted that the proposal includes the net loss of 46 roles in the Operational Response branch and 45 roles in the Prevention branch, including four wildfire specialists. Fitzsimons questioned the timing of such reductions, citing recent wildfire events and the need for preparedness in the face of climate-related risks.
FENZ’s restructuring proposal includes consolidating regional management from five regions to three. While the agency has stated that frontline firefighter and communications centre positions will be protected, other roles may be affected as part of the review.
FENZ chief executive Kerry Gregory told staff: “We can’t keep doing everything for everybody, and that’s not a bad thing. Our people are carrying a heavy workload, and our new strategic direction allows us to focus our energy and resources on what matters most.” Gregory emphasised that statutory duties, such as firefighting and emergency rescue, will remain unchanged.
The Professional Firefighters’ Union has raised concerns that up to 230 roles could be impacted, including positions related to previously agreed firefighter recruitment. Recent operational changes, such as the discontinuation of motorised watercraft rescues, have also prompted discussion within the sector. FENZ clarified that this decision was based on safety and capability, not cost-saving measures.
The insurance industry has generally supported the government’s decision to moderate the levy increase. Insurance Council of New Zealand (ICNZ) chief executive Kris Faafoi described the revised levy adjustment as an appropriate response, considering the broader economic environment. “We know that New Zealanders are finding it tough dealing with the cost-of-living crisis, and we support the government’s move to ensure Kiwis don’t pay anything more than they have to,” Faafoi said.
The PSA has indicated it will oppose the proposed changes and submit feedback outlining associated risks. The consultation period is scheduled to end before the close of the year, with the final structure to be announced soon after.
