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Home / New Zealand

Consumer Watchdog: Funerals are dead pricey

By Rebecca Lewis
Herald on Sunday·
17 Oct, 2009 03:00 PM4 mins to read

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The cost of death on a grieving family can be anywhere up to several thousand dollars. Photo / The Aucklander

The cost of death on a grieving family can be anywhere up to several thousand dollars. Photo / The Aucklander

The rising cost of dying has been slammed by a funeral director who claims "greedy" companies are exploiting grieving families.

Three years ago the Funeral Directors Association of New Zealand estimated the average cost of a funeral at $8800. The organisation refused to update the figure this week, but Herald
on Sunday inquiries found the bill can reach $12,000.

Lynda Hannah, of environmentally friendly funeral company Living Legacies, said more than half went to funeral directors for disbursements. These are costs that funeral directors pay themselves and later recoup from their clients such as embalming, flowers, catering and newspaper notices.

"The total cost is way too high and it's because of greed," said Hannah, who charges between $50 and $750 a day. "These people can exploit the vulnerable at the worst times of their lives, when they're grieving. They're not going to shop around for a bargain."

One woman, posting on the Consumer New Zealand website, was shocked to receive a $10,500 bill for her father's funeral this year. The invoice covered two nights in the morgue, coffin and burial plot. After further enquiries she discovered she was also being charged separate service, embalming and hearse hire fees.

"I just find it upsetting to have to go through all this after you've suffered a loss," she posted. "Their whole purpose is to make these types of events easier for people to cope with."

The Funeral Directors Association represents about 85 per cent of funeral homes in New Zealand.

Vice-president Tony Garing said a professional service fee was normal and covered the cost of staff working on a funeral over a number of days. Bills varied hugely because families had different needs but the number of complaints about costs had declined as directors became more upfront.

"My experience over 26 years is that people often don't know a lot about funerals, so we present them with a range of costs and talk them through it. Most directors provide written estimates, which gives families an opportunity to cut costs."

All funeral homes contacted by the Herald on Sunday said clients were given an estimate and would be told of changes.

John Rhind Funeral Directors in Christchurch charges between $4500 to $9000 for cremation but as little as $1000 for burial.

Harbour City Funeral Home in Wellington charges about $7000 for cremation and $8000 for burial.

Beth Shan Funeral Directors in Napier charges between $3500 and $9000 for cremation but refused to reveal burial prices.

Battersby Funeral Services in Auckland charges up to $4000 for burial and between $5000 and $6000 for cremation.

Hannah, who works in Motueka, near Nelson, isn't the only funeral director to take a stand. Gary Brownless gifted his business Legacy Funerals to the people of Tauranga under a trust when he retired in 2007. It has since allocated more than $300,000 to community groups.

Brownless said funerals were getting more expensive, and those in charge should always do their best to keep costs down for grieving families.

"This business runs on reputation, so if there's a blatant ratbag out there I imagine they won't stay in business for long."

SUFFERING LOSS UPON LOSS

Funeral costs vary hugely according to family wishes. In 2006, the Funeral Directors Association of New Zealand estimated the average bill as $8800.

A huge chunk is spent on professional service fees - the amount paid to the funeral director. This can range from $3000 to $3500 and may include embalming, hearse hire and staff.

Another large portion goes on disbursement - extras which the funeral director pays for and claims back from the family later. They can include catering, flowers and donations to celebrants. The coffin is additional, costing anywhere from $600 to $6000. Cardboard caskets - a greener way to bury your loved ones - sell for as low as $350.

Burial fees vary - vice-president of the Funeral Directors Association Tony Garing said Westland District Council this year hiked its fees 600 per cent to $600 or $1025 to pre-purchase. Plots cost even more in Auckland, with the Auckland City Council charging about $1300 and Waitakere City Council between $1300 and $3950.

THE COST OF DYING

Professional Service fees: $3000 to $3500
Coffin: $250 to $6000
Cemetery burial plots: $1000 to $3000
Disbursements: up to several thousand dollars

rebecca.lewis@hos.co.nz

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