FENZ collected levies unlawfully, minister says
Fire and Emergency New Zealand collected its fire levy against the law, the minister in charge, Brooke van Velden, says.
She made the statement on 17 September 2026. She is the minister responsible for Fire and Emergency New Zealand (FENZ) RNZ.
Van Velden said she no longer has confidence in chief executive Kerry Gregory. Gregory heads FENZ. She said Gregory seriously breached the no surprises rule — the expectation that a chief executive gives the minister early warning of major problems.
Van Velden said she learned of the levy issue about two weeks ago. She said she heard only because the board chair said she needed to know. The chief executive had not kept her informed as expected, she said.
She said she did not know Fire and Emergency had spent nearly half a million dollars examining the collection issue. The agency spent the money as it looked into the problem, she said.
She said Fire and Emergency had been referred to the Serious Fraud Office. The referral was on the board's advice, she said. The Office investigates serious or complex fraud.
The levy system, the fees on insurance that fund FENZ, has been under review for more than two years. Van Velden is seeking alternatives to ease the financial burden on levy payers, according to a 2024 statement Beehive. FENZ sought a 5.2% increase in levy revenue for 2026-2029. A 12.8% levy increase will apply.
A new Part 3 levy is due to start in 2026 RNZ. It aims to broaden the base across residential, commercial and vehicle categories. Van Velden held the Internal Affairs portfolio at that time, with responsibility for the levy policy work.
Van Velden also holds the Workplace Relations and Safety portfolio Beehive. In that role she is seeking public feedback on experiences with employment advocates, how employment disputes are experienced in practice, and where improvements could be made.
The broader context here is a funding model where levies are set in law and collected by the agency itself. An unlawful collection, a large internal cost not reported to the minister, and an SFO referral on board advice test three accountability lines at once. They are the legal basis for the levy, the no surprises link between chief executive and minister, and board oversight of executive action.
Looking at what this means for the Beehive, a public withdrawal of confidence in a chief executive is rare and hard to walk back. The board must manage the employment relationship while the agency keeps collecting levies and prepares for Part 3. Open questions include the period of non-compliance, the handling of funds already collected, and how the SFO process will sit with levy decisions already in train.
