Minister Says FENZ Breached Levy Law and Kept Her in the Dark
Fire and Emergency New Zealand breached its own law on levy collection and decided its minister did not need to know, Brooke van Velden says.
Speaking on 17 September 2026, Ms van Velden, the minister responsible for Fire and Emergency, said the agency was "breaching its own law in regards to levy collections" and thought she "did not need to know about its breaching of levy collection law" RNZ. The levy is the charge on insurance policies that funds FENZ. The minister said she had been kept in the dark about a compliance failure under the law FENZ itself administers.
She said she did not know FENZ had spent close to half a million dollars looking into the levy issue. She called that spending "completely unacceptable" and said it pointed to a "lack of accountability across the public service". That figure updates earlier reporting. A report had criticised FENZ for giving wrong answers and spending $275,000 on PR and lawyers RNZ.
Ms van Velden said she "no longer had confidence" in chief executive Kerry Gregory after a "serious breach of the no-surprises clause". She stood by that position. The no-surprises convention means chief executives give ministers an early heads-up about major risks or failures, especially where Parliament or the public is likely to ask questions.
She said FENZ had been referred to the Serious Fraud Office on the board's suggestions. She said she was acting on the board's advice, not directing the referral herself. No detail was given on the scope of what was referred or what threshold was met.
The Governance and Administration Committee, the select committee of MPs that scrutinises public sector management, has recommended the Government look at changing FENZ's board and whether FENZ should be allowed to buy its own fire trucks. The board question relates to ministerial powers under the Crown Entities Act and the Fire and Emergency New Zealand Act. The trucks question relates to operational independence and how large equipment purchases are planned and approved.
Separately, the chair of the Privileges Committee called an urgent meeting over a leaked FENZ report RNZ. Privileges is the committee that deals with leaks of select committee papers and interference with Parliament.
The broader context here is the working relationship between minister, board and chief executive when a levy-funded agency faces questions about its own revenue. A formal loss of confidence is different from day-to-day criticism. The board employs the chief executive, while the minister answers to Parliament for the agency. With the Serious Fraud Office referral and the committee's recommendations on governance and trucks, the next decisions to watch are on people, structures and possible law changes.
