The Insurance Council of New Zealand (ICNZ) has asked Internal Affairs Minister Peter Dunne to explain how he intends to fund a proposed new national emergency service provided by Fire and Emergency New Zealand (FENZ).

Mr Dunne has flagged letting FENZ, which begins operations on July 1, take charge of disaster response.

ICNZ says it would be unfair to impose levies on property owners who take out home insurance.

“This is election year and we challenge all political parties to commit to funding our emergency services fairly and sustainably,” ICNZ CEO Tim Grafton said.

“Unless there is a commitment to fund FENZ from general taxation for the public good it will provide, it is monstrously unfair to load the burden for running a mega emergency service by taxing those who insure their own property.”

ICNZ has long objected to funding FENZ through a levy paid on insurance for contents, property and motor vehicles. FENZ is an amalgamation of the New Zealand Fire Service, the National Rural Fire Authority and other urban and rural fire services.

Mr Dunne told local media last week there is a strong case for “grafting” emergency services onto FENZ.