Media statement on behalf of IBANZ -Fire Service levies

The Insurance Brokers Association of New Zealand (IBANZ) is coming out strongly against the proposed Fire Service levies.

According to IBANZ CEO Gary Young, the levy is unfair and the organization will be campaigning very strongly on behalf of all people who are responsible for insuring assets, whether private or business related.

"The Fire Service is an emergency service and many New Zealanders need to use it at some time. To tie the cost to those who insure is inherently unfair. These are the responsible members of the public who are paying for protection. They are then asked to pay a second or even third time when the Government uses taxpayer funds, or the Councils use rate payer funds, to assist those who have no insurance.

"It's not a levy, it's a tax," says Mr Young. "And worse than that, it's a tax on the very people who are trying to do the right thing by making sure they are adequately insured.

He says it encourages people to either not insure or, as is very common, to under insure, by increasing the cost of insurance through the imposition of levies on top of premiums.

The Government has made it clear it does not want to be the "insurer of last resort" bailing out those who have not taken out protection through insurance and are left with nothing after a disaster. However by increasing the cost to insure, they are encouraging non insurance or under insurance and therefore the cost to them following a disaster.

IBANZ in representing the people who are insured in our community believes that the funding of a national emergency service should be spread across all members of the community. The cost should not be loaded on to what will become a diminishing number of responsible citizens who are prepared to protect their assets through insurance.

ENDS

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