New Zealand insurers have made a fresh attack on the Government’s Fire Services Review for failing to consider significant changes to the funding model.

A discussion document published in May dismisses alternatives to the insurance-based levy, such as general taxation or a charge on property rates.

Submissions to the review have now been published, and the insurance industry does not hold back.

“We believe the current system is significantly flawed and requires more than a simple enhancement of the status quo,” the Insurance Brokers Association of New Zealand (IBANZ) says. “The approach of funding via insurance is outdated and no longer reflects the reality of the role of the Fire Service or the current environment in which the Fire Service operates.”

The Insurance Council of New Zealand’s submission says excluding general taxation and property-based funding models has “made a mockery” of the consultation process.

“These optimum approaches are ones that have been adopted overseas for sound reasons.

“To cast them aside when a fundamental review of the Fire Service is occurring is a dereliction of duty.”

Insurers Tower, AA and Vero make similar points.

All insurance industry submissions support reform option two, a mixed funding model, as “the lesser of two evils”.

This would provide funding from a mixture of sources, including an insurance-based levy and contributions from the Government and the motor vehicles sector.

“We realise that this time around we are not going to get it away from insurance,” IBANZ CEO Gary Young told insuranceNEWS.com.au.

“But some of the proposals would make it more difficult.”

The Government has received 236 submissions to the review, which also addresses structural issues within New Zealand’s urban and rural fire services.

Internal Affairs Minister Peter Dunne wants legislation introduced early next year, with the new Fire Service launched by the middle of 2017.