Terms of Reference for the Fire Review Panel

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1 Terms f Reference fr the Fire Review Panel Purpse The Fire Review Panel (the Panel) is appinted t prvide independent advice t the Minister f Internal Affairs (the Minister) abut hw the Gvernment can achieve: a clear mandate and perating platfrm fr fire services functins; effective, efficient fire service peratins that will prvide value fr mney in the future; and a sustainable, stable and equitable funding system fr fire services. The review is the first phase f any refrm f New Zealand s fire services arrangements. Cntext There is an expectatin that mdern twenty-first century fire services perate effectively, efficiently, and seamlessly with the rles perfrmed by ther emergency service prviders. Cabinet has agreed t a review f fire services t ensure fire services wrk efficiently and effectively and cntinue t prvide value fr mney in the future [CAB Min (12) 21/6 refers]. Current cntext New Zealand s dual urban and rural fire management systems are gverned under tw clsely interlinked Acts the Fire Service Act 1975 (FSA) and the Frest and Rural Fires Act 1977 (FRFA). The FSA establishes the New Zealand Fire Service Cmmissin (the Cmmissin) as a Crwn entity and the New Zealand Fire Service (NZFS), fr which the Cmmissin is respnsible. There are als 76 rural fire authrities, established under and perating in accrdance with the FRFA. The Cmmissin is als the Natinal Rural Fire Authrity (NRFA), and has respnsibility fr the crdinatin f rural fire management by the rural fire authrities. Funding arrangements The Cmmissin/NZFS and rural services are funded frm tw separate systems. The Cmmissin and NZFS are funded almst exclusively frm a levy calculated n the amunt fr which prperty is insured against the risk f fire. Rural fire authrities are funded predminantly thrugh lcal authrity rates (r departmental apprpriatins fr the Department f Cnservatin and New Zealand Defence Frce). The prblem New Zealand s fire services currently face a number f prblems. The activities perfrmed by ur fire services, particularly the NZFS s capability t deal with nn-fire emergencies, have develped ver time in respnse t cmmunity demand. As a result, frmal accuntability fr functins perfrmed by the fire services des nt match peratinal reality, and sme f the activities they perfrm verlap with thse f ther emergency service prviders. Funding arrangements fr fire services d nt align with the functins undertaken, and d nt necessarily prvide a stable and sustainable base.

2 Scpe f wrk Cabinet has agreed fr the Panel t prvide advice n hw the fllwing utcmes might be achieved: Outcme 1: that New Zealand s fire services have a clear mandate and perating platfrm fr the functins they perfrm, and that it is clear hw thse intersect with functins perfrmed by ther emergency services prviders; Outcme 2: that the Cmmissin and fire services are rganised and perating as effectively and efficiently as pssible and will prvide value fr mney in the future; and Outcme 3: that there is sustainable, stable and equitable funding fr fire services, with the surces f that funding aligning with the functins that they perfrm Outcme 1: Fire service functins and perating platfrm assess the current NZFS and rural fire authrity functins and hw these intersect with rles f ther emergency management agencies and services prviders, including; ambulance services and rescue rganisatins; and the Natinal Cntrller, Civil Defence Emergency Management (CDEM) Grups, and grup and lcal cntrllers established under the Civil Defence Emergency Management Act 2002; analyse any gaps r verlaps in the delivery f first respnse emergency services invlving the NZFS and ther fire services, and identify ptins fr future rles and functins f New Zealand s fire services; and prvide recmmendatins n future statutry and nn-statutry functins fr New Zealand s fire services, including the impacts f thse recmmendatins n ther services and hw they might be managed. Outcme 2: Effective and efficiently rganised fire services assess New Zealand fire services by lking at: current and future client bases, including demgraphic changes; capability trends, including resurces and human capital; and strategic expenditure needs, including planning and asset management; cnsider and analyse ptins fr gvernance and structure that wuld enable New Zealand s fire services t perate as efficiently and effectively as pssible, while taking int accunt: the histrical assumptins abut staff numbers and their lcatin (t ensure that the NZFS has an ptimal mix f paid and vlunteer firefighters); 2

3 the ecnmic value that gvernment and cmmunities receive frm vlunteers in ur fire services, and measures t enable and encurage vlunteers service, including cnsidering cmpeting demands by ther emergency service prviders; the Cmmissin s capital investments including the building types and lcatin f fire statins, and the types f fire appliances, cmmunicatins systems and ther investments; the apprpriate mechanism fr asset management (including depreciatin) and renewal, including the level f reserve funds; and ther activities, such as its training facilities and research grants; and prvide recmmendatins n hw the Cmmissin s business perating mdel culd be imprved, and when and hw any such changes culd be implemented. This may include changes t: prvide a mdern Crwn agent rganisatinal frm that is cnsistent with the Crwn Entities Act 2004, 1 r mre substantial changes t rganisatinal frm; and accelerate the amalgamatin f rural fire authrities, in accrdance with the bjectives f the Enlarged Rural Fire Districts prgramme. Outcme 3: Fire service funding assess the Cmmissin s funding base data and identify future funding ptins, based primarily n a levy n insurance cntracts; undertake an analysis f future funding ptins against the fllwing criteria: prvide sufficient funding t ensure the fire services can perfrm the functins agreed by Gvernment; be administratively simple t calculate and cllect; be stable and predictable; be equitable s that: (a) (b) thse wh receive the varius services perfrmed by the NZFS cntribute t the csts fr bth fire and nn-fire related activities; and levy payers in rural fire districts receive benefits that reflect their needs and cntributin; and minimise distrtins in investment decisins, insurance price and cverage; and prvide recmmendatins fr the Cmmissin s future funding base s it can be mre sustainable, stable, equitable and cmmensurate with future functins and business perating mdel, including: 1 Fr example, rganisatinal accuntabilities are cmprmised because the tw Acts allcate functins directly t lcal statutry fficers, rather than t the respnsible Crwn entity t delegate. 3

4 hw imprvements culd be made t the current insurance-based levy; whether there are ther viable funding surces; and the impacts f thse recmmendatins n ther services and hw they might be managed. In additin t the abve, the Panel may als prvide advice n any ther issues it determines are relevant. Outside scpe The Panel will nt prvide advice n whether: New Zealand needs a natinal fire service in the frm f the NZFS; the NZFS shuld maintain its cre fire-related rles; management f fire n frest and rural lands shuld be prvided by rural fire authrities; the NZFS shuld be funded by the Crwn; and the industrial relatins framewrk applying t firefighters shuld be refrmed. Scpe clarificatin Where the Panel and Department f Internal Affairs (the Department) are unable t determine whether an issue is within scpe, r becme aware that an interested party has a different view than the Panel and the Department n whether an issue is within scpe, the Panel Chair and Department may jintly seek a determinatin frm the Minister as t whether he cnsiders the issue t be within scpe. Deliverables The Panel will develp a prject plan t meet fur stages f wrk: Prblems identified and substantiated by evidence; Range f ptential ptins identified; Key ptins identified; and Optins fully develped and assessed, and recmmendatins drafted. Interim reprt The Panel will prvide the Minister with an interim reprt by Tuesday 2 Octber 2012 utlining the analysis undertaken t date under the stages f wrk utlined abve. Draft final reprt The Panel will prvide a draft final reprt t the Department by Tuesday 4 December Final reprt The Panel will prvide advice t the Minister n later than Tuesday 11 December 2012 in the frm f a final reprt with recmmendatins. 4

5 Cnsultatin It is nt intended that the Panel will undertake extensive cnsultatin. Hwever, in undertaking its wrk the Panel is t adpt a cllabrative apprach with relevant stakehlders, and may invite fcused input frm selected rganisatins and individuals as apprpriate, including but nt limited t: the Cmmissin (including the Natinal Rural Fire Authrity), New Zealand Plice, Lcal Gvernment New Zealand, the United Fire Brigades Assciatin f New Zealand, the New Zealand Prfessinal Firefighters Unin, and Natinal Ambulance Sectr Office; the Ministries f Civil Defence & Emergency Management, Defence, Health, Primary Industries, Business, Innvatin and Emplyment, and Transprt 2 ; the Departments f the Prime Minister and Cabinet and Cnservatin; ther central agencies including the State Services Cmmissin (particularly in respect t the machinery f gvernment), the Treasury, the Accident Cmpensatin Crpratin, Te Puni Kōkiri, Canterbury Earthquake Recvery Authrity, and New Zealand Defence Frce; St Jhn Ambulance, and Wellingtn Free Ambulance; and any relevant prfessinal, emplyer, r insurance industry bdies. 2 The Ministry f Transprt als includes New Zealand Search and Rescue, which represents the cllective search and rescue interests f the New Zealand Defence Frce, Maritime New Zealand, Civil Aviatin Authrity, the Department f Cnservatin and New Zealand Plice. 5

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