New Zealand’s Taxpayers’ Union has attacked a 40% rise in insurance levies to fund the new national emergency service, echoing the claim that policyholders are unfairly penalised.

Fire services costs will increase by $NZ80 million ($73.75 million) annually despite government claims the merged Fire and Emergency New Zealand (FENZ) will result in cost savings and better efficiency.

“Not only are the costs going up, but the reforms will mean insurance-holders are unfairly targeted to fund the fire service,” the Taxpayers’ Union says.

“The changes do nothing to incentivise self-insurance and actually reward those who opt out of insurance altogether. How is that fair?

“What is worse, the Government has increased the economic burden on New Zealanders without any comparable increase in the level of service.”

The FENZ, an amalgamation of the New Zealand Fire Service, National Rural Fire Authority and 38 other rural fire bodies, will start operations on July 1. Premiums for house and contents and car insurance will rise to pay for the new service.