12 Oct 2016

Air NZ claims proposed fire levy will cost millions

3:57 pm on 12 October 2016

Air New Zealand will have to fork out millions of dollars more under a new fire service funding model, the airline says.

An Air New Zealand plane at Auckland Airport.

Photo: 123RF

A select committee is hearing submissions on the Fire and Emergency Bill, which would collect a levy from contents, property and vehicle insurance, and would become the principal source of funds for the Fire Service.

Air New Zealand head of government and industry affairs Duncan Small said the company's aircraft had been exempt from the fire levy, but that would change under the proposed law.

The airline already paid for fire services through landing fees, he said.

"The costs of risk of fire and fire services are recovered from all airlines as part of landing charges, so that you pay based on the amount that you land at an airport.

"But [paying] through the fire service levy would impose substantial costs and create some equity and public policy issues."

It would also be easier to collect the levy from Air New Zealand than overseas airlines, creating an unfair disadvantage to the company, Mr Small said.

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