By EUGENE BINGHAM
Ratepayers may have to foot the bill for the financially ailing Fire Service under proposals to halt big-business avoidance of the fire levy.
Government officials are considering ways to force all home and property owners to pay, after a review of Fire Service funding found that the organisation
was missing out on up to $100 million.
The present system imposes a levy on insurance policies against the risk of fire, but an increasing number of commercial properties are insured overseas or through schemes that sidestep the levy.
Other proposals include having another agency collect the levy, using Quotable Value data, or changing the law to make sure the levy is paid whether a property is insured or not.
It is understood that the rating system is regarded as the most efficient system, although the Government realises that councils would be anxious to avoid charges that could be seen as a rates rise.
Internal Affairs Minister George Hawkins said yesterday that decisions were some way off, although the Government was convinced change was necessary.
The Fire Service raises most of its money through the levy. Its operating budget was raised to $213 million this year, when the Government increased the rate of the levy from March 1.
Householders faced a maximum levy of $73 a year, up from $62. Insured motorists paid $5.84 instead of $4.96.
In its last annual report, the Fire Service Commission said it could not cover its monthly net expenditure because the levy income was not enough.
A study conducted by the commission found an increasing trend for big companies to use overseas insurance.
It is understood the level of avoidance has been conservatively estimated at $50 million, though officials believe it could be as much as $100 million.
Commission chairwoman Dame Margaret Bazley said this week that a review of Fire Service funding was crucial.
Mr Hawkins said collecting the levy through rates was one option, "but I'm not locked into it."
Potential problems included the differing ways in which councils calculated the rateable value of properties, and ratepayer perception.
