FENZ Announces $50 Million Annual Savings Target Amidst Escalating Risks & Funding Concerns
WELLINGTON, NZ – fire and Emergency New Zealand (FENZ) is aiming to save $50 million each year from 2026/27, as the agency faces increasing demands and a shifting funding landscape.The proclamation comes after a recent directive from the government to save $60 million by 2029, and follows a period of revenue growth – nearly doubling since 2017 to approximately $800 million annually.
The savings target was initially set at $240 million over three years, but has since been revised to $150 million, according to an August memo from FENZ leadership. FENZ CEO Kerry Gregory stated in the memo that funding is becoming “less reliable” due to dropping insurance levy income, requiring the agency to “plan for the possibility that our funding will continue to go down.”
The cost-cutting measures are unfolding alongside an organisational restructure that has already yielded $14 million in savings as of August. Approximately half of FENZ’s $800 million annual budget is allocated to personnel – comprising 1800 paid firefighters,12,000 volunteers,and 1300 management and support staff. Another $100 million is spent on the fleet and gear.
Recent decisions have sparked concern among some firefighters, including a ban on rescues utilizing motorised boats, despite three volunteer brigades having already invested in this capability, including jetskis on the Waikato River. FENZ cited the capability as “dangerous” and beyond its current capacity. The agency has clarified that this decision is “not at all related to cost savings.”
FENZ currently operates six water teams equipped with rafts, but lacking motors. Some firefighters believe this represents an inadequate response to the growing risk of flooding, and suggest the agency is hesitant to allocate further resources to water rescue.
The agency is also navigating commitments made during 2022 pay talks regarding an increase in paid firefighters. While a working group proposed increasing frontline numbers, FENZ has agreed “in principle that a blanket increase was ‘not effective’ and increased firefighters should be placed where there is the greatest need.” FENZ maintains it is maximizing the use of existing staff before adding new personnel, and a risk-based assessment is underway, with data expected by Christmas to support a potential “uplift.”
Temporary increases in staffing have been implemented in Auckland (50 firefighters) and Gisborne (nine paid crew). FENZ stated the overall intention is “to enable Fire and Emergency New Zealand to focus on delivering our core business.”
despite the savings drive, Gregory emphasized the need to continue investing in personnel, buildings – including upgrades to existing stations – regulatory duties, and essential gear, such as replacing aging fire trucks. Deputy Prime Minister David Seymour recently acknowledged the need for meaningful fleet upgrades, noting that FENZ only established an asset maintenance plan in the last two years.
