Download PDF: Annual report for the year ended 30 June 1999

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Download PDF: Annual report for the year ended 30 June 1999

NEW ZEALAND

SERVICE

engaging the

community...


CONTENTS

● Chairperson’s Letter 2

● Commission Overview 4

● Reducing the Incidence and 6

Consequences of Fire

● Fire Service Governance 11

● Fire Service Management and Operations 13

● National Rural Fire Authority 18

● Fire Service Levy 20

● Outcomes 21

● Statement of Responsibility 28

● Report of the Audit Office 29

● Statement of Accounting Policies 30

● Statement of Financial Performance 34

● Statement of Financial Position 35

● Notes to the Financial Statements 38

● Statement of Objectives and 46

Service Performance

● Organisation Structure 54

● Directory 56

...a year of

positive progress

1


Chairperson’s

Letter

Hon Jack Elder

Minister of Internal

Affairs

Dear Minister

In accordance with the Fire Service Act 1975, the

Forest and Rural Fires Act 1977 and the Public Finance Act

1989, I present to you the report of the New Zealand Fire

Service Commission for the year ended 30 June 1999.

The Commission is pleased to report that the strategic

decision to refocus the work of the New Zealand Fire

Service on its core business - reducing the incidence and

consequences of fire - is achieving positive results. Total

fire incidents fell from 24,664 in 1997/98 to 22,067

in 1998/99 - an 11% reduction. More impressively,

urban fires fell by 15% in the same period. Fatalities

attributable to fire continued to decline from the 1996/97

high of 52; with 46 fire deaths recorded in 1997/98 and

42 in 1998/99.

Total fire incidents down

Urban fires down

Total deaths down

11 %

15 %

96/97 - 52

97/98 - 46

98/99 - 42

The Commission acknowledges that much remains to be

done before all New Zealanders and in particular, the

very young, the elderly, Maori and other ethnic at-risk

groups, may be said to enjoy a truly fire-safe

environment. The Commission is confident, however,

that it has in place an appropriate mix of fire risk

management strategies. These will further reduce the

incidence and consequences of fires in the years ahead.

The Commission draws to your attention several

significant initiatives (detailed elsewhere in this report)

which engaged and upskilled the community in fire

prevention and fire safety issues during 1998/99. In

both the urban and rural sectors, partnerships have been

formed with key community and industry groups to

improve the delivery of fire prevention and fire safety

programmes.

Other significant milestones in the 1998/99 year

include the Home Safe Home national television and

print media campaign, the related kitchen and caravan

fire safety campaigns and the innovative work of the

first iwi fire safety liaison officers. The Commission is

grateful to all those from within and outside the Fire

Service who have given of their time and energy to

contribute to these initiatives.

Good progress has been made in addressing the

needs of volunteer brigades. Representation on the eight

Fire Region Operating Committees has provided

volunteer brigades with a direct say in the management

of the Fire Service. A more targeted approach to

expenditure on station maintenance has reduced the

maintenance backlog. Most significantly, a portion of

the savings made from the management and support

staff restructure of December 1997 funded the

equivalent of 20 new full-time volunteer support positions

across the country.

Government’s desire that paid front line employees

should be employed on flexible terms and conditions

consistent with best state and private sector work place

practice remains a top priority for the Commission. We

regret to report that with respect to the majority of paid

front line employees, whose collective contract expired

as long ago as February 1994, no progress has been

made. Events following the end of the financial year give

cause for cautious optimism.

During the course of the year the Deputy Chairperson

and Chairperson resigned from the Commission.

Following my appointment in May, the Commission

moved rapidly to develop and distribute a Statement

of Strategic Direction. The statement sets out the

Commission’s commitment to measured and progressive

reform of the Fire Service. The Commission looks

forward to reporting substantial progress against that

reform agenda next year.

Yours sincerely

Dame Margaret Bazley, DNZM

Chairperson

3


Commission

Overview

COMMISSION MEMBERSHIP CHANGES

The Commission has four members - three are appointed by the Governor-General on the recommendation of

COMMISSION STRATEGIC

DIRECTION

the Minister of Internal Affairs. One of these three is appointed by the Governor-General as Commission

In June 1999, following the changes to the membership In addition to its role as the Crown’s principal manager

Chairperson. The fourth member is the Secretary for Internal Affairs.

of the Commission referred to earlier, the Commission of fire risk in New Zealand, the Commission has four

The year under review saw several changes to the membership of the Fire Service Commission.

decided to take stock and develop a Statement of main statutory functions:

Strategic Direction. This was communicated to all staff • overall co-ordination of fire prevention and fire safety

• In July 1998 Mr Roger Estall was reconfirmed as Chairperson of the Commission on a four days

and volunteer brigades on 7 July 1999. The Statement as required by section 20 and section 21 of the Fire

per week basis.

is made up of four high level elements.

Service Act 1975 and section 12(2) of the Building

4

• On 10 December 1998 Mr Douglas Martin resigned his position as Deputy Chairperson and

member of the Commission.

• On 16 December 1998 the Commission appointed Mr Brian Stanley as the new Deputy Chairperson.

• On 1 April 1999 Mr Neville Young was appointed to fill the vacancy created by Mr Martin’s resignation.

• On 20 May 1999 Mr Roger Estall resigned from his position as Chairperson and member of the

Commission.

• On 21 May 1999 Margaret Bazley was appointed to the position of Chairperson and member

• Focus on Fire Prevention, Fire Safety and

Fire Outcomes;

This places greatly increased emphasis on fire

prevention and fire safety while also working to

improve the outcomes from traditional emergency

response activities.

Act 1991;

• governance of the New Zealand Fire Service as

required by section 14 of the Fire Service Act 1975;

• exercise of the role of the National Rural Fire Authority

as required by section 14A of the Fire Service Act

1975 and Section 18(2) of the Forest and Rural Fires

Act 1977; and

5

of the Commission.

• Resource Re-allocation and ‘Value for Money’ • collection and audit of the Fire Service levy as

The Minister of Internal Affairs’ letters of appointment for new Commission members continued

Expenditure;

required by section 47B and sections 48 to 53A of

to focus on the Government’s strategic goals. These include:

This aims to resource appropriately the increased fire

prevention and fire safety work. It also requires all

the Fire Service Act 1975.

• development of the Fire Service in support of Government’s comprehensive emergency

resourcing decisions to pass a risk-based, “best value

management strategy;

for money” test consistent with the Government’s

The remainder of this Annual Report discloses:

• reform of the Fire Service within set financial parameters, to achieve increased efficiencies in

overall goal of ensuring a cost effective Fire Service.

the Commission’s performance of its four main

the delivery of fire safety and fire suppression services;

statutory functions;

• settlement of the firefighters’ employment contract consistent with current state and private sector

• Best Practice Organisation;

the operations of the NZ Fire Service;

employment best practice;

This aims to achieve a culture of continuous • the financial performance of the Commission’s

• increased investment in the fire safety and fire suppression needs of volunteer fire brigades;

improvement and reform in the Fire Service through operations for the year; and

• maintenance of the investment in fire safety and fire suppression needs of rural fire authorities

constant exposure to best practice in external • the financial position of the Commission at

and high recognition of the Commission’s responsibilities as the National Rural Fire Authority;

organisations.

30 June 1999.

• delivery of the outputs purchased from the Fire Service by both the Crown and the Commission

• Strong Fire Service Governance and Management;

as required by the Fire Service Act 1975.

This is to enable the Fire Service to:

- deliver on its statutory mandate;

- respond to the needs of all stakeholders;

- become resilient to shocks through good

risk management; and

- support the Government’s emergency

management reforms.

The Statement of Strategic Direction is intended to guide

decision making in the medium term. It is not a work

programme for achievement in the short term.

COMMISSION STATUTORY

FUNCTIONS


6

Reducing

the Incidence and

Consequences of Fire

The Commission is committed to achieving three key goals by 30 June 2001. These are:

• reducing the number of house fires by 25%;

• reducing the number of house fire fatalities by 50%; and

• reducing the mean property loss by 30%.

A key factor in managing fire risk is community awareness. To help achieve these goals, the following

programmes were developed to raise community awareness about the dangers of fire.

IMPROVING COMMUNITY FIRE SAFE BEHAVIOUR

The Home Safe Home programme

The Home Safe Home programme focuses on helping New Zealanders take responsibility for keeping themselves and

their families safe from fire. It aims to reach them where they are most at risk from fire - in their own homes.

There are several campaigns and promotional tools in the broader Home Safe Home programme which will run over

three years. All are highly visual. Home Safe Home campaigns initiated in the 1998/99 year were promoted

through national television and print media, and were actively supported by local fire brigades working directly with

their communities.

Through Home Safe Home, fire safety educators in the field now have a range of practical education tools including

Home Safe Home booklets in five languages - Chinese, Maori, Samoan, Tongan and English. These enable local fire

safety officers to reach a wide audience of at risk groups within the community.

Sub sets of the Home Safe Home campaign deal with more specific messages.

One highlights dangers in the kitchen where nearly 25% of residential structure fires start.

90 %

The key messages were: “Don’t leave the kitchen when cooking - not even for a minute”; and,

“Use a wet tea towel to put out frying pan fires”.

71 %

of New Zealanders aged 18 to 54 saw the

Fire Service’s kitchen fire safety TV ads

of those who saw the ads could recall the

kitchen fire messages

Another sub set relates to safety in caravans and sleep-outs. Firefighters and fire safety officers

visited caravan parks nationwide to raise awareness of fire-safe behaviour in caravans through

advice and educational material. Key problems discovered and addressed included:

• caravans too close to each other;

• unsafe or leaking fuel (LPG) cylinders, lines and connections; and

• a lack of smoke alarms in caravans.

The campaign ran throughout the summer and was later broadened to permanent caravan dwellers.

7


extinguisher and lightweight fire hose use in buildings.

Their new skills and knowledge help keep communities

and workplaces safer.

The Commission also provided funding assistance to

the New Zealand Food and Manufacturing Industry

Training Organisation (FMITO) to develop New Zealand

Qualifications Authority (NZQA) accredited training

material on fire alarms, fire sprinklers and other fire

equipment.

This is part of the Commission’s strategy to ensure New

Zealand has buildings with reliable automatic systems

Buildings

and features that provide a fire safe environment.

• Rest Homes

The likelihood of someone dying in a licensed rest

8

Focusing on at-risk groups

Many groups at risk from the hazards of fire are not

easily engaged in programmes designed to raise fire

danger awareness and improve fire safety behaviour.

The Fire Service has sought to improve its access to these

groups by entering into a wide range of formal and

informal partnerships with community groups.

The Manukau “Ambassadors” are a good example.

These community workers partner the Fire Service in

getting the fire safety message into the homes of the 142

ethnic cultures in Manukau. The pilot programme involved

To reinforce safety messages to Pacific communities the

Fire Service partnered Television One in the screening of

a kitchen fire safety programme on TV One’s Tagata

Pasifika programme.

Working with young fire lighters

The pilot Juvenile Intervention Programme expanded

nationwide following recognition of its success in

reducing repeat fire lighting offending by young

people. Last year the programme worked with about

700 young people nationwide.

BETTER FIRE SAFETY LAW

AND COMPLIANCE

The Fire Service continues to work with the Building

Industry Authority (BIA) and Standards New Zealand

(SNZ) to upgrade Approved Documents and Standards

dealing with public fire safety aspects of buildings, work

environments and consumer products.

Consumer Products

Fire Service technical advice in the 1998/99 financial

year contributed greatly to the enactment of legislation

home as a result of a fire has been substantially

reduced. The majority of licensed rest homes now have

upgraded fire warning/suppression systems, coupled

with approved fire safety evacuation schemes.

Almost 95% now have sprinkler systems installed. This

joint project with the Ministry of Health is an excellent

example of the results that can be achieved when

central government agencies work together towards

a common goal. The smoke alarm programme with

Housing New Zealand is another example.

• Housing New Zealand Smoke Alarm Programmes

9

nine health and welfare organisations and included Trained fire officers partnered experts from Police, Police

prohibiting the supply of cigarette lighters that do not The Fire Service partnered Housing New Zealand in

Plunket, Parents as First Teachers, Health Pacifica, Youth Aid, the Child Youth and Family Services

meet the required child resistant standards.

installing multiple smoke alarms in its rental

representatives of the Chinese community, City Mission

and Maori Nutrition. It was a joint venture between the

Department (CYFS), and other community youth

agencies in this work.

The Fire Service believes that this legislation will help

reduce the number of fires caused by children “playing”

properties, a massive project involving 240,000

smoke alarms installed in some 60,000 properties.

Manukau Fire District and the Manukau City Council. Future plans include the development of a national fire

with cigarette lighters. The Fire Service, nevertheless, A particular feature of the smoke alarms used by

In selected high risk communities the Fire Service setter database, a best practice and procedure manual,

continues to push the message that all cigarette lighters Housing New Zealand is that they have a ten year

partnered with agencies such as the local crown health and formal protocols with the other programme partners.

and matches should be kept out of the reach of young battery life. After ten years Housing New Zealand

enterprise and Te Puni Kokiri to install smoke alarms and

children.

will replace the entire alarm.

provide fire safety advice to every household in those

communities.

Arson

The increasing number of deliberately lit fires resulted

in specialist arson investigation teams being formed

After the new legislation was passed, staff from national

office and regions worked to support the Ministry of

Already these alarms have prevented injuries and

allowed occupants of Housing New Zealand houses

The Fire Service has also taken the Home Safe Home

with the Police. These teams have been put together

Consumer Affairs and Ministry of Commerce to introduce to get out and stay out. The Fire Service will

programme to various ethnic festivals and community

to utilise the combined fire knowledge and forensic

and implement the product safety notice banning the encourage other residential landlords to follow the

events. In February, using Rotorua’s huge Te Arawa

investigation skills of the team members; to profile arson

sale of any but child resistant disposable cigarette lighters example of Housing New Zealand.

Maori Sports Festival as a stage, the Home Safe Home

Maori language campaign was launched.

scenes, collect evidence and improve detection rates.

from May 1999.

The Fire Service is also represented on the joint

• Smoke Alarms - one is not enough

International research has shown smoke alarms

Other events included:

Fire safety training

Australian/New Zealand Standards committee currently should be installed in all bedrooms and in all

the Pacifica Arts Festival;

In addition to running promotional campaigns, the Fire

considering an appropriate standard to cover these principal rooms in the house.

the Home Safe Home campaign launch to the

Service trained 12,295 people in fire safety and

types of cigarette lighters.

Wellington Tongan community.

related skills such as fire warden training, and fire


The benefits of multiple smoke alarms in houses

are well recognised and actively promoted by the

Fire Service. The availability of long-life battery

photoelectric models, as well as ionisation detectors,

means that smoke alarm coverage can be tailored

to provide the most effective coverage for each

household.

Fire brigades continue to educate people in the use of

smoke alarms in the home. Many of these initiatives are

supported by local Mayors, service organisations and

businesses, with firefighters installing alarms in key areas

within communities.

invited to submit more detailed proposals. In the final

analysis, 10 of these projects were funded and the

contracts let by the end of the financial year.

The major projects cover epidemiological studies of fire

incidence and fire injuries, methodologies for identifying

and influencing vulnerable groups, residential sprinkler

systems and fire detection in rest homes.

These research projects are intended to help the Fire Service

find ways of reducing:

the number of fires; and

the risk to life and property from fire.

Fire Service

Governance

Introduction

In addition to its statutory responsibility for the co-ordination

of fire risk management in New Zealand, the Commission is

responsible for the governance of the New Zealand Fire Service.

In one community, Ngaruawahia, smoke alarms University of Canterbury

donated by the local publican and installed by Since 1994, the Commission has funded a lectureship

firefighters saved nine lives, just hours after their in fire engineering at the university of Canterbury and

The Commission discharges its governance The Purchase Agreement

installation. Though the house was gutted, all nine given money for research and student scholarships. The

responsibilities through:

Ministerial approval for the Commission’s 1998/99

sleeping occupants were alerted to the fire danger early university now has a very successful masters programme

• The appointment of a Chief Executive with

budget was delayed until 4 June 1999 due to

enough to escape unhurt.

and a well respected research facility.

qualifications, competencies and experience

injunctions issued by the Employment Court restraining

appropriate to the role;

the Commission from implementing its restructuring

10 RESEARCH

Backed by continued Commission support, the university

made the lectureship permanent from the start of the

• The Chief Executive’s Performance Agreement which

sets out the Commission’s expectations and priorities;

proposals. Nevertheless, the Commission agreed an

interim Purchase Agreement with the Chief Executive

11

Contestable Research Fund

At its July 1998 meeting the Commission agreed to

establish a contestable research fund of $500,000

for 1998/99. The purpose of the contestable research

1999 academic year and expanded its lecture staff. The

provision of a steady source of Masters in Fire

Engineering has raised the level of expertise within New

Zealand and will continue to do so.

• The annual Purchase Agreement between the Fire

Service and the Commission, which in turn must

reflect the Commission’s budget approved by the

Minister of Internal Affairs in consultation with the

at the commencement of the 1998/99 financial year

and exercised its governance responsibilities through

rigorous monthly monitoring of financial performance

against the interim Purchase Agreement.

fund is to advance knowledge in fire prevention and Fire engineering graduates of the masters programme

Minister of Finance;

fire management in New Zealand in order to meet are ensuring that the professional engineers and

• The Instrument of Delegation which authorises

The Instrument of Delegation

the Commission’s statutory function as laid out in the architects they work with in the public and private sector

the Chief Executive to exercise certain of the

The Instrument of Delegation approved by the

Fire Service Act 1975 (Part II).

receive expert advice on how to make buildings more

Commission’s statutory powers subject to relevant Commission and issued to the Chief Executive in June

The Commission determined a set of research priorities

for the 1998/99 financial year. These focused on:

• human behavioural aspects of fire;

the knowledge and perceptions people

fire safe.

Northland Fire Region

The Northland Fire Region is charged with conducting

applied field research for the NZ Fire Service. The

policy direction; and

• The Audit Committee of the Commission which

reports to the Commission on matters of prudential

policy and compliance.

1998 was operative throughout the year. In May 1999

a supplementary Instrument of Delegation was issued

to clarify the Chief Executive’s authority to enter into

various classes of contracts.

have of fire risk; and

• how risky behaviours may be influenced.

region was selected for this role due to its diverse fire

hazardscape and socio-economic mix. All brigades,

Resignation of Chief Executive and

appointment of Chief Executive (Acting)

The Prudential Control Environment

As a result of removing an entire layer of management in

Other research priorities included aspects of rural fire paid and volunteer, participate in the research effort.

Mrs Jean Martin, Chief Executive, resigned with the 1997/98 year, weaknesses in the internal control

protection and the issue of reducing false alarms.

A Research Advisory Group, chaired by the Principal

Fire Engineer, was convened to invite and assess

Projects undertaken in 1998/99 included:

• on board computer databases capable of providing

responding crews with pre-arrival information about

effect from 25 May 1999. The Commission moved

immediately to appoint Mrs Alison Timms as Chief

Executive (Acting).

systems of the Fire Service were identified by the Internal

Audit Manager and the Audit Office.

Throughout 1998/99 the Commission and Fire Service

research proposals - and make recommendations for

funding to the Commission.

The group invited expressions of interest for funding in

November 1998. Some 70 submissions were received

and assessed. Of these, 20 research groups were

the fire scene;

• evaluation of thermal imaging cameras and positive

pressure fan technology; and

• bulk funding of volunteer fire brigades to minimise

administrative work load, consistent with audit and

financial reporting obligations.

Chief Executive Performance Agreement

The Commission has established a Performance

Agreement with the Chief Executive (Acting) for the

1999/2000 financial year.

management worked hard to upgrade the

control environment. The Commission is pleased with

the improvements and remains committed to further

improvements.


MANAGEMENT

Fire Service

Management

and Operations

The Audit Committee

Royal Honours and Awards

In August 1998 the Commission adopted revised Terms The Commission was pleased to note the recognition

of Reference for the Audit Committee consistent with its of long and meritorious service to the Fire Service and

STRUCTURE

four key statutory functions. The work associated with National Rural Fire Authority in the New Year and

The Chief Executive is responsible to the Commission for the general conduct of the Fire Service and its efficient,

upgrading the prudential control environment and ensuring Queen’s Birthday Honours.

effective and economical management.

Year 2000 readiness required the Audit Committee to meet

New Year Honours included the Queen’s Service Medal

The National Commander is the operational head of the Fire Service responsible for the prevention, suppression and

six times during the course of the year under review.

for Public Service awarded to:

extinction of fires and the safety of people and property endangered by fire.

12

Mr Malcolm McCaw continued to serve as an independent

member of the Audit Committee throughout the year,

providing advice in respect of audit and other financial

management issues.

Year 2000 (Y2K) Readiness

The Commission has paid particularly close attention to

• Colin Growcott, Chief Fire Officer,

Hokitika Volunteer Fire Brigade;

• Allen Procter, Fire Region Commander,

Eastern Fire Region; and

• Harry Shackleton, formerly firefighter,

Masterton Volunteer Fire Brigade.

The National Rural Fire Officer is responsible for carrying out the National Rural Fire Authority’s role and functions on

a daily basis, for rural lands covered by the Forest and Rural Fires Act.

As at 30 June 1999 the New Zealand Fire Service had:

• a corporate office in Wellington;

• a national service centre in Wellington providing administrative support to the Fire Service;

• eight regions each headed by a Fire Region Manager;

13

the Fire Service’s Y2K readiness. While there can be no Queen’s Birthday Honours included the Member of the

• 348 fire districts (urban);

absolute guarantees, the Commission is satisfied that NZ Order of Merit awarded to:

• 437 fire stations;

the process followed by the Fire Service to ensure Y2K • Graeme Booth, Chief Fire Officer,

• 28 auxiliary brigades attached to but outside the fire districts;

readiness has been best practice. Independent external Laingholm Volunteer Fire Brigade;

• approximately 800 fire appliances;

advice has been sought where appropriate. Particular • Murray Dudfield, National Rural Fire Officer,

• 348 management and support staff;

attention is being paid to the Communication Centre National Rural Fire Authority; and the Queen’s

• 74 staff in three emergency communication centres in Auckland, Wellington and Christchurch;

environment, in conjunction with the New Zealand Police. Service Medal for Public Services to:

• approximately 8,000 urban volunteer firefighters;

Conflict of Interest Register

• Trevor Gilbert, Station Officer (retired),

• 1,641 paid firefighter positions.

The Conflict of Interest register which contains all Onehunga Fire Brigade.

VOLUNTEERS

declarations of interest by members of the Commission

Volunteer firefighters are an integral part of the Fire Service, providing fire prevention and emergency response to

was maintained throughout the 1998/99 year.

urban fire districts and surrounding rural lands throughout New Zealand. They deal with 38 percent of all non-false

alarm incidents, and 32 percent of incidents including false alarms. They also attend 55 percent of all motor vehicle

Asset Management

incidents where Fire Service assistance is required, provide civil defence emergency help, assistance to police,

The Commission’s governance objective is to ensure

hazardous substance containment and clean up, and fire awareness education.

that all assets are selected, acquired, funded,

maintained and disposed of on a best practice basis.

They receive no payment for the services they perform for their communities.

Substantial progress has been made and further

SENIOR MANAGEMENT CHANGES

progress is anticipated next year.

There were a number of senior management changes during the year. These included:

• The appointment of the new National Commander, Mr Ken Harper, formerly Deputy Fire Chief for the

Northern Ireland Fire Brigade, on 25 January 1999;

• The appointment of the new Chief Executive (Acting), Mrs Alison Timms, replacing former Chief Executive,

Mrs Jean Martin, who resigned in May;

• The appointment of a Strategic Business Development Manager, Mr Kevin Stacey, a new management position

carrying responsibility for ensuring assets are selected and maintained on a best practice basis.


ORGANISATIONAL DEVELOPMENTS

continued to decline over the year. However, the

• Fire Service Maori Fire Safety Initiative

Fire incident reporting redevelopment

The service made significant progress on upgrading average cost of long term injuries is increasing and will

The iwi fire safety liaison officer position established The redevelopment of the Fire Incident Reporting System

management capacity and organisational infrastructure be the focus of further efforts in the new financial year.

in Bay-Waikato was reviewed and a (FIRS) was commenced during this reporting year. The

during the year.

During the year a comprehensive independent review

recommendation made to implement similar roles in high level business requirements of the new system were

A new set of policies and procedures was developed of the OSH systems and processes in place in the

other regions. This recommendation currently forms identified and a pilot of web-based technology trialled

for the Fire Service. The aim of these policies, 137 in all, Fire Service was undertaken. Key recommendations

part of the 1999/2000 draft EEO programme. as the basis for data capture. Detailed system design

was to supplement and enhance the accountability

regime, and improve the control environment so that the

Fire Service adopts best business practice, obtains value

for money, and safeguards assets and resources.

The policies cover all functional areas - finance;

human resources; information technology; legislative

compliance; asset management; and communications,

media and promotions.

The policies were developed through a consultative

process and progressively rolled out. This process

continues in the 1999/2000 year.

from this review will be actioned in the 1999/2000

year, including the appointment of a national OSH

co-ordinator to further improve the organisation’s health

and safety standards and performance.

• Workplace injury insurance contracted out

The Fire Service entered into an insurance contract

with @Work Insurance Ltd after a comprehensive

tender and assessment process. The Fire Service’s

aim is to work progressively with @Work over the

1999/2000 year to achieve greater selfmanagement

and a level of self-insurance. This

strategy has the potential to further enhance the

ACHIEVEMENTS IN INFORMATION

TECHNOLOGY

Regional network implemented

The roll out of local area networks to seven of the eight

regional offices was completed. These networks link the

regional offices of the Fire Service and the National

Rural Fire Authority to the corporate office and the

National Service Centre. This wide area network now

provides internal and external electronic mail, access to

shared network services and information access on a

national basis. The eighth regional office (Bay-Waikato)

and application development will be advanced during

the 1999/2000 year.

Establishment of a Human Resource

Management Information System (HRMIS)

for the whole workforce

In the 1998/99 year the Fire Service made considerable

progress towards its long term goal of establishing a

common, networked HRMIS that would provide a

management tool for its paid and volunteer workforce.

By year’s end the Fire Service had concluded extensive

testing and assessment of a preferred system.

14

ACHIEVEMENTS IN HUMAN RESOURCES

Training

organisation’s OSH objectives,

significant cost efficiencies.

and achieve

will be installed when the office relocation is completed

early in the next financial year.

It is intended that the new system will be progressively

implemented in the 1999/2000 year, providing a

sound human resource information base for the future.

15

During the year the Fire Service achieved its goal of Equal employment opportunities

Wide area network pilot for fire

moving to a NZQA-based training framework.

The equal employment opportunities (EEO) programme

stations completed

Shared Information Technology

More than 80 percent of the 295 Community Safety Team

members passed the unit standards required to move to

the next progression level (an estimated 800 hours of

training and assessment per person).

In addition, 500 training agreements covering a minimum

developed during the year complements other human

resource initiatives aimed at improving workplace culture

and staff/management relationships.

Following are some key EEO improvements put in place

over the year.

A pilot was completed to trial new technology that will

enable all paid and volunteer stations to connect to the

Fire Service wide area network and access email and

other network services and information. This network will

be implemented in the 1999/2000 year to support

national information systems including human resources,

Environment (SITE)

In December 1996 the Fire Service and the New

Zealand Police entered into an agreement to share

certain information technology developments associated

with emergency call taking, processing and resource

dispatching. The SITE Agreement provided for the Fire

of 16 compulsory units and a small range of elective units • EEO Policy finalised and staff pamphlet completed

fire incident reporting and a national Intranet service. Service to co-locate three new communications centres

were made available to volunteers. Firefighters employed The Fire Service’s Equal Employment Opportunities

in dedicated facilities owned by the Police.

under the expired D1 contract were consulted about a

process for transferring them on to the NZQA framework

through formally recognising their prior learning.

Health and Safety

During the 1998/99 year the Fire Service established

policy has been developed and is being promoted

nationally. A pamphlet for staff outlining some key

information about Equal Employment Opportunities

within the Fire Service has also been developed for

distribution to all stations and offices.

Fire Service web site upgraded

The Fire Service web site was redeveloped and

upgraded during the year. It features publicity and fire

safety information in English, Maori, Samoan and

Tongan. This is part of fulfilling the Commission’s overall

aim that the Fire Service will engage the community and

In July and August of 1998 the Fire Service progressively

closed the six old “comcens” and cut over to the three

new co-located centres. A variety of problems were

experienced which gave rise to public concerns about the

Fire Service’s continued ability to provide a timely and

a regular monthly reporting process to measure the • EEO Statistical Database evaluation

encourage people to take greater responsibility for their

reliable emergency response service. The problems were

effects of health and safety initiatives introduced during The proposed Human Resource Management

own fire safety. Readers are encouraged to explore the

progressively addressed during the year with some still

the year. These include the introduction of regional Information System was evaluated for its capacity

site at www.fire.org.nz.

in progress.

Occupational Safety and Health (OSH) advisors, and

the Safe Person concept.

to enable the Fire Service to record detailed EEO

statistical data. Data collection will be one of the

initiatives in the 1999/2000 EEO Programme.

The national site includes regional linkages in readiness

for the further development of regional web sites that will

ACHIEVEMENTS IN ASSET MANAGEMENT

During the 1998/99 financial year, ten new volunteer

The Safe Person methodology allows firefighters to

allow local people to get information and publicity on stations were constructed to replace stations that needed

assess and manage risks to their personal safety.

• Pregnancy Policy developed and finalised

programmes specific to their area.

upgrading.

The number of new injuries and the cost of these injuries

A pregnancy policy, developed after earlier

consultation with women firefighters, was finalised.


These new volunteer stations were at: Wairoa, Piha, Some of the priority training delivered included:

Operational Readiness

were involved in rescues and other special service

Norsewood, Collingwood, Eketahuna, Edendale, • First aid refresher and basic training;

During the year a national committee was formed assistance. The storm affected the communities of

Nightcaps, Kawakawa, Wyndham and Waitara. The • Fire hazard management;

to plan and co-ordinate operational strategies and Dargaville, Pakanae, Whirinaki, Pawarenga and

majority were of a standard modular design and • Motor vehicle extrication; and

readiness for Millennium Celebrations and the possible Pangaru. The brigades responded to calls for help from

construction, providing upgraded appliance garaging • Occupational safety and health (serious harm

impact of Y2K on communities. The committee traumatised residents despite road closures and

and facilities, at an economic cost.

and basic).

developed standard templates which enabled all districts communications problems.

The volunteer station at Motueka was significantly

upgraded during the year and will cover local needs for

In addition the NSC continues to provide comprehensive

technical support for the Fire Service’s computer-based

to establish their capability to meet the specified range

of contingencies.

On 1 May 1999 heavy rain in Rotorua and the Western

Bay of Plenty Region resulted in 100 calls for assistance

many years to come.

information systems.

Non-Fire Emergencies

with flooding emergencies.

A new station was built at Karori, Wellington. This

required extensive community consultation and the

meeting of complex resource consent requirements.

To reduce internal servicing and administration costs, the

NSC reviewed all national contracts and strengthened

supplier relationship management processes.

On 14 July 1998 torrential rain across much of

Auckland, Waikato and Bay of Plenty resulted in over

160 calls for assistance. The Auckland Communication

Policies and Procedures

A review of the National Commander’s Operational

Procedures and Operational Management Policies has

The Commission adopted a targeted approach to the

Centre successfully processed these despite impending

resulted in a greater emphasis on safety in the

maintenance backlog and applied $1.9 million to OPERATIONS

co-location to the new communication centre.

operational environment. A new hazard identification

16

deferred building maintenance in 1998/99. In addition

$6.2 million of capital expenditure was applied to

replacing older stations.

Additions to the appliance fleet included 17 Scania

pumps, 13 Mitsubishi pumps and nine Mitsubishi

Canter pumps.

Community Fire Tragedies

October 1998 was notable for the loss of two major

landmarks in the Wellington Region. The Lower Hutt

community lost a valued community facility in the 68-year-old

Hutt Recreation Ground Grandstand. The incident was

notable for the speed with which the blaze took

Civil Defence Emergencies

There were no national civil defence emergencies

declared during the 1998/99 financial year.

Nine local level civil defence emergencies were

declared by local authorities during the period. Seven of

these declared emergencies were for flooding which

and action table has been included with each

operational procedure. This will help firefighters identify,

minimise and isolate hazards at incidents they attend.

This is a major step forward in our commitment to safety

and health. It should return positive results in the form of

reduced injuries to staff - both paid and volunteers - at

operational incidents.

17

Further work is being undertaken to evaluate the type of

appliances the Fire Service needs for the future.

hold of the structure and the fact that despite the

building being occupied by children attending a holiday

programme no lives were lost.

occurred as the result of heavy rainfall in late October

and early November 1998.

The adoption of the Safe Person Concept and the

introduction of the New Zealand Co-ordinated Incident

ACHIEVEMENTS IN FINANCIAL

MANAGEMENT AND PLANNING

Progress was made in managing the Fire Service’s internal

financial risks. More robust business planning and

In the same month the Johnsonville community lost

the Mitre 10 hardware store together with the loss

of 50 jobs.

As the result of flooding the Mayor of the Buller District

Council declared a state of civil defence emergency on

19 October. A second declaration was made in the

same district on 27 October 1998 as the result of further

Management System (CIMS) are other examples of

developments during the year that will improve incident

ground safety in future years.

reporting processes were developed to support the regional On 16 December fire destroyed a 100-year-old historic

substantial rainfall. On both occasions the local fire Improved Resources

structure set up in the 1997/98 year. The planning and building in Nelson. The building was occupied by four

brigades, and in particular the Karamea Brigade, played The Fire Service made major investments in firefighting

reporting processes were refocused to reflect the businesses that suffered extensive losses as a result of the

a significant role in assisting members of the public. technology during the year to provide better tools to

organisation’s emphasis on the achievement of outcomes. blaze. The building was not protected by sprinklers

On 21 October 1998 the Kapiti District Council declared

firefighters for saving life and property, while keeping

which, had they been installed, could have minimised

a state of civil defence emergency as the result of high

themselves safe from harm.

NATIONAL SERVICE CENTRE (NSC)

the loss.

rainfall and flooding. The Fire Service attended a total These investments in modern firefighting resources include:

CONSOLIDATION

In April the Pacifica Seafood mussel processing plant

of 128 incidents during a two-day period. Incidents • the research, evaluation and purchase of positive

Established in the preceding financial year, the National

in the Rai Valley was destroyed by fire. While the efforts

occurred in the lower half of the North Island but were Pressure Ventilation fans (PPV);

Service Centre consolidated its internal servicing and

of the firefighters were commendable, the fire resulted

predominantly centred on the Kapiti Coast, Horowhenua, • the progressive equipping of fire appliances

administrative support to the corporate office and regions.

in the loss of plant and buildings that placed the

Wanganui, and New Plymouth Fire Districts. This was nationwide with compressed air foam (CAF) capability,

Highlights of the NSC’s 1998/99 year included ongoing viability of the plant in question. The processing

followed by a second declaration by both Kapiti and and

attaining accreditation as a Government Training Entity operation has since been relocated with the loss of many

Wanganui District Councils covering the period 28 to • the completion of the three year programme for

(GTE). During this financial year the Centre provided jobs in this small community.

30 October 1998 when a substantial number of special supply of structural firefighting protective clothing

around 15,000 hours of operational training a month

service and flooding incidents were attended.

to all firefighters.

mostly to volunteer brigades, along with regional

In January the far north of the North Island experienced This will help the Fire Service to meet its goals of

financial and budgetary training.

flash flooding. Volunteer brigades throughout the region enhancing firefighter and public safety.


National Rural Fire Authority

COMMISSION

RESPONSIBILITY

reaching high or extreme for short periods in most

3,165 wildfires were recorded, with a total of 17,699 hectares burnt. In comparison to

areas. Central Otago experienced the most severe

previous years, not only did 1998/99 record the most hectares lost in a 10 year span,

fire danger and a record drought code of 1034 was

but more hectares were lost in 1998/99 than in the last three years combined.

Through its Chief Executive and the National Rural reached at Clyde on 9 March 1999.

Fire Officer, the Commission, acting in its capacity as

the National Rural Fire Authority, is responsible for

127 wildfires, each costing over $1,000 to

CO-ORDINATED INCIDENT MANAGEMENT SYSTEM

providing leadership and co-ordination of all rural

suppress, were reported in 1998/99. The largest of

The Co-ordinated Incident Management System (CIMS) Manual was launched by the Minister

fire matters at the national level.

these were the Waipiro/Te Puia/Ihungia fires north

of Internal Affairs, the Hon Jack Elder, at the New Zealand Fire Service corporate office on

In the rural environment, fire can be a land

management tool. However, there is always the

of Gisborne and the Fruitlands and Springvale fires

in Central Otago.

25 November 1998.

The manual is a collaborative effort from a wide range of emergency management

danger that these fires can get out of control and

become “wildfires”. An average of 20 percent of

MERGER

organisations, and is designed to provide a seamless command framework at

multiple agency incidents.

18

wildfires each year starts from land-clearing burns. In The merger of four regional rural fire committees into

When Central Otago was hit by two very large wildfires the opportunity

19

addition, other factors cause wildfires such as two was agreed in April 1999. The East Coast and

arose to test the recently launched Co-ordinated Incident Management System.

lightning strikes (uncommon) and arson (more Hawke’s Bay Regional Rural Fire Committees merged

It proved to be very successful.

common).

to form the Eastern Regional Rural Fire Committee,

Rural property owners are responsible for fires and the Rotorua and Taupo Regional Rural Fire

FOREST AND RURAL FIRE RESEARCH

originating on their own properties but can insure Committees became the Central North Island

against possible liability for damage, and firefighting

costs if fires spread from their land. This type of fire

cover is different from that required to reinstate their

own property in the event of fire.

Regional Rural Fire Committee.

RURAL FIRE FIGHTING FUND

The Forest and Rural Fire Research programme produced a

scrubland fire behaviour model, based on observations

of scrub fire behaviour data from several wildfires and

32 experimental burning trials.

For the year ending 30 June 1999, 56 claims

This model predicts the rate of fire spread

LA NINA SUMMER

against the fund were lodged by the Department

of Conservation and 71 by other fire authorities.

and intensity for scrub land fuels and

now sits alongside the grassland

The La Nina weather patterns of the summer of 1998 This compares with 42 from the Department of

and pine plantation fire behaviour

/99 brought varied fire danger throughout the country. Conservation and 101 by other fire authorities for

models. Criteria for setting

Northland, Auckland and Waikato experienced

the previous year.

scrubland fire danger classes

generally moderate levels of fire danger, peaking in The highest amount claimed was for the Waipiro/Te

have also been developed

December and January, followed by reduced levels Puia/Ihungia fire in Gisborne where 280 hectares

and will be trialled in the

of fire danger after significant rain.

were burnt. This fire alone cost $531,000. The

Authority’s daily fire

The eastern and southern North Island had similar

conditions. The western areas had higher than

Fruitlands fire and the Springvale fire in Central Otago

cost just over $505,000 and $368,500 respectively.

weather reports over

the 1999/2000

fire season.

average fire danger conditions. In the South Island The number of fires was lower than the previous year

conditions were very dry with fire danger levels – a pleasing trend.


Fire Service

The collection and verification of Fire Service levies is

one of the Commission’s four main statutory functions.

The Fire Service Levy is a tied tax levied in terms of the

Fire Service Act 1975 in order to:

• meet the Commission’s authorised expenditure

requirements, and

• provide funding for the Rural Fire Fighting Fund.

The setting of the rate of levy is the responsibility of the

Minister of Internal Affairs.

COMMISSION

RESPONSIBILITIES

Levy

LEVY VERIFICATION ISSUES

Fixing, recovering and verifying the Fire Service levy

from insured residential property and motor vehicles is

straightforward. Quantifying levy liability with respect

to non-residential property can be more problematic.

These problems are twofold:

• uncertainty exists as to the “indemnity value”; and

• where there is no indemnity value, issues of clarity

and enforceability arise.

Outcomes

The output classes and measures set out in the Annual Purchase Agreement and

Statement of Corporate Intent demonstrate the Commission's emphasis on

reducing the incidence and consequences of fire. These reflect the underlying

concern to improve outcomes and to this end the Commission monitors a range

of outcome indicators.

These include:

• The number of fires by region and by property type;

• The incidence of fire per 1,000 head of population;

• The number of fire deaths by age, sex, and fire cause;

• The incidence of fire fatalities per 100,000 head of population;

• Loss of property attributable to fire.

The Commission’s responsibilities are to ensure:

These problems are longstanding and well recorded.

The 1992 legislation which created these problems was

intended to be temporary and further work by officials was

anticipated to put the Fire Service levy on a sounder basis.

• that the levy is collected from insurance

companies, brokers and in some cases, direct In 1992, Cabinet’s State Sector Committee commissioned

Deaths and Injuries from Fires Reduced

20 from insured persons; and

a special working party of officials chaired by an

Fire Injury and Fatality Outcomes 1998/99 1997/98

21

• that the correct amount of levy required by law is paid. independent chairperson, Mr David Harrison. The working

Number of fire fatalities 42 46

The levy is charged on property insured against fire and

is added as a separate line item to insurance premiums.

There are some exclusions such as crops, forests and

party reported in June 1994 and the recommendations in

the Harrison report are still awaiting consideration.

The Commission has stated publicly that the question

Fire fatalities per 100,000 population

Number of multiple fatality fires

Number of injuries to members of the public as a result of fire

1.14

6

339

1.25

7

446

marine cover. Where insurance cover is purchased from

of determining the basis for the Fire Service levy is

overseas insurers the levy is still payable on the same

a matter for Government and it would welcome

Fire deaths declined for the second year in a row. Another key concern is the major part cigarettes,

basis as for property insured with New Zealand insurers.

legislative clarification of the liability calculation.

Fire deaths totalled 52 in 1996/97, 46 in 1997/98 matches and cigarette lighters played in fire deaths in

BASIS OF THE LEVY

COMMISSION ACTION

and 42 in 1998/99. Equally pleasing aspects of the

outcome statistics were the decline in the number of

1998/99. A two-pronged strategy to reduce deaths

from these causes was implemented during the year:

Prior to 1992, the Fire Service levy was charged solely

The Fire Service Commission approved and issued to

multiple fatality fires and the reduction in the numbers of • changes to consumer legislation restricted sales of

on the indemnity sum insured just like Earthquake

the insurance industry a circular clarifying the indemnity

injuries sustained by members of the public at fires.

disposable cigarette lighters to child resistant

Commission (EQC) premiums. De-coupling of EQC and

value requirements for compliance with section 48 of

As usual, structure fires account for the highest portion

models, and

Fire Service levies in 1992 caused many commercial

organisations to examine indemnity values more closely.

Since amendments made to the Fire Service Act in

the Fire Service Act 1975. It was prepared after

extensive consultation with the insurance industry and

issued in September 1998.

of fire deaths. Children aged under six years and

people over 60 continue to represent a

disproportionately large group within fire deaths. The

the continuing Home Safe Home national

education campaign targeted the dangers of child

access to matches and lighters.

1992 and 1993, the Fire Service levy has been

Following the issuing of the circular the Commission

Fire Service recognises the importance of reaching these An emerging concern is the number of deaths by fire

charged on the following basis:

re-engaged PricewaterhouseCoopers as its levy

at-risk groups with improved fire safety advice and resulting from motor vehicle accidents; the second largest

• a uniform charge for motor vehicles;

auditors. These auditors completed in July a

awareness programmes. Partnership programmes cause of fire deaths after structure fires. The Fire Service

• residential property charged on the same basis as

programme of audits at 18 locations. The Commission

discussed elsewhere in this report have been initiated to will give extensive consideration to its role in reducing

the new EQC insurance property;

also began extensive consultation with the insurance

improve access to these groups.

deaths from this cause in the next financial year.

• all other property:

industry to clarify calculation of fire service levies on

- the indemnity value where it is declared or

contract works.

provided; and

The Fire Service Commission intends issuing similar

- the sum insured where an indemnity value is circulars from time to time, as necessary, to address

not provided.

issues relating to calculation of fire service levies.


Number and Incidence of Fires

The number of residential and non-residential structure fires fell significantly from the previous year. Against that

Number of Fires by Region 1998/99 1997/98

background, the increase in the percentage of residential structure fires confined to the room of origin was particularly

Northland 739 886

pleasing.

Auckland 5,939 6,496

Bay - Waikato 3,109 3,448

RESIDENTIAL STRUCTURE FIRES

Western 1,980 1,863

Eastern 1,430 2,042

Arapawa

Transalpine

3,174

3,129

3,934

3,676

350

340

76%

75%

74%

Southern

Total

2,567

22,067

2,319

24,664

330

320

73%

72%

71%

310

70%

Incidence of Fires per 1,000 Head of Population by Region 1998/99 1997/98

300

69%

68%

Northland 5.21 6.25

290

J J A S O N D J F M A M J J A S O N D J F M A M J

67%

Auckland 5.45 5.96

97 98 99

Bay - Waikato

Western

5.42

6.23

6.01

5.86

Month

12 month rolling average percentage contained to room of origin (right axis)

12 month rolling average number of residential structure fires (left axis)

Eastern 6.85 9.78

Arapawa

Transalpine

5.90

6.11

7.31

7.18

NON-RESIDENTIAL STRUCTURE FIRES

22 Southern 8.70 7.86

23

Total 6.00 6.71

190

78.5%

185

78.0%

180

77.5%

Both the number of fire events and the incidence of fire fell significantly from the preceding year. The overall positive outcome

reflects the impact of the Fire Service's fire prevention and fire safety education campaigns. Variations between regions are

175

170

165

77.0%

76.5%

76.0%

likely to be attributable to local seasonal climatic factors although it is noteworthy that the overall outcomes were achieved

160

75.5%

during a prevailing La Nina weather pattern.

155

150

75.0%

74.5%

145

74.0%

Reducing the Consequences of Fire

Structure Damage 1998/99 1997/98

Number of residential structure fires 3752 4011

Number confined to room of origin 2809 2877

Percentage confined to room of origin 75% 72%

Number of non-residential structure fires 1934 2074

Number limited to 10% or less damage 1474 1582

Percentage limited to 10% or less damage 76% 76%

Number of

Residential Structure Fires

Number of

Non-Residential Structure Fires

J

J A S O N D J F M A M J J A S O N D J F M A M J

97 98 99

Month

12 month rolling average percentage contained to 10% damage (right axis)

12 month rolling average number of non-residential structure fires (left axis)

The benefit of the Fire Service's long and persistent campaigns to improve the penetration rates of smoke alarm

installations shows through clearly in the structure damage statistics. Early notification of a fire in a structure leads to

early attendance and containment by the Fire Service and the minimisation of damage and loss. For residential structure

fires, the percentage of fires contained to the room of origin increased from 72% to 75% during the year.

Correspondence on file from the insurance industry also demonstrates that the progressive deployment of Compressed

Air Foam (CAF) units on appliances is making a positive contribution to reducing the consequences of fire.

Progress Against Three Year Goals

Last year the Commission announced its commitment to a three year programme to improve dramatically three key

outcomes. The goals are to:

Reduce the number of house fires by 25%;

Reduce the number of house fire fatalities by 50%; and

Reduce the mean property loss from fire by 30%.

Percentage

Contained

Percentage

Contained


The following tables demonstrate year one progress against the three year goals.

REDUCTION IN HOUSE FIRES

Number of

House Fires

REDUCTION IN HOUSE FIRE FATALITIES

Fire and Non-fire Emergencies

24 40

2000

25

Number of

House Fire Fatalities

4100

4000

3900

3800

3700

3600

3500

35

30

25

20

JUN

98

JUN

98

JUL

98

JUL

98

AUG

98

AUG

98

SEP

98

SEP

98

OCT

98

Goal Rolling 12 month actual

OCT

98

NOV

98

NOV

98

DEC

98

Month

DEC

98

Month

JAN

99

JAN

99

FEB

99

FEB

99

Goal Rolling 12 month actual

REDUCTION IN MEAN PROPERTY LOSS

Mean

Property Loss

1650

1600

1550

1500

1450

1400

1350

1300

1250

JUN

98

JUL

98 AUG

98

SEP

98

Month

OCT

98 NOV DEC

98 98

JAN

99

Goal Rolling 12 month actual

MAR

99

MAR

99

FEB

99 MAR

99

APR

99

APR

99

MAY

99

MAY

99

APR

99 MAY

99

JUN

99

JUN

99

JUN

99

FIRE INCIDENTS

Number

of Fire Incidents

3000

2500

2000

1500

1000

500

0

JUL

98

AUG

98

SEP

98

NON-FIRE EMERGENCIES

Number of

Non-fire Emergencies

2500

1500

1000

500

0

OCT

98

NOV

98

DEC

98

As the above two tables indicate, the number of fire incidents the Fire Service attends has been declining over time

while the number of non-fire emergencies attended has been increasing. While this has some implications for the

funding of the Fire Service in the longer term, it must be remembered that the principal focus of the Fire Service remains

the management of fire risk. Accordingly, the bulk of its non-emergency effort is applied to fire-related matters and the

success of these efforts is apparent in the long run reduction in the number of fire incidents.

JAN

99

FEB

99

MAR

99

Month

Fire Incidents 12 month rolling average

APR

99

Month

Non-fire Emergencies 12 month rolling average

MAY

99

J J A S O N D J F M A M J J A S O N D J F M A M J

97 98 99

JUN

99


26

False Alarms

For many years false alarms have comprised approximately one third of all incidents to which the Fire Service is called.

False alarms represent an enormous deadweight and divert scarce resources away from more valuable uses. Many

false alarms are generated by malfunctions in automatic building condition monitoring equipment attached to the Private

Fire Alarm (PFA) system. In 1998/99 the Fire Service initiated a long term programme to reverse the trend rates in false

alarms and will work with the fire protection industry and building owners to achieve its goals in this area.

FALSE ALARMS

Number of

False Alarms

3000

2500

2000

1500

1000

500

0

MAR

98

APR

98

MAY

98

JUN

98

JUL

98

AUG

98

SEP

98

OCT

98

Note to statistical tables

The number and incidence of fires for 1997/98 quoted in this Annual Report varies slightly from the same data

quoted in last year's Annual Report. At the end of each year detailed information on a small percentage of incidents is

not available. The incident data is grossed up to address this difficulty. During the course of the following year the

detailed information becomes available and the incident statistics are revised accordingly.

Small changes in the fatatility statistics are attributable to the outcome of coronial inquests reported after the close of

the year.

NOV

98

DEC

98

JAN

99

FEB

99

Month

False alarms 12 month rolling average

MAR

99

NUMBER OF FALSE ALARMS PER 100 SYSTEMS INSTALLED

Total False

Alarms

2100

2050

2000

1950

1900

1850

1800

1750

1700

MAR

98 APR

98 MAY

98 JUN

98

APR

99

Month

12 month rolling average total false alarms

12 month rolling average false alarms per 100 systems installed

MAY

99

JUN

99

JUL

98 AUG

98 SEP

98 OCT

98 NOV

98 DEC

98 JAN

99 FEB

99 MAR

99 APR

99 MAY

99 JUN

99

7.05

7.00

6.95

6.90

6.85

6.80

6.75

6.70

6.65

6.60

6.55

Number of False Alarms

per 100 systems installed

Financial

Statements


28

Statement of

Responsibility

Pursuant to section 42 of the Public Finance Act 1989, the Commission and management

of the New Zealand Fire Service are responsible for:

the preparation of the financial statements and the judgements used therein, and

the establishment and maintenance of an internal control system designed to provide

reasonable assurance as to the integrity and reliability of financial reporting.

In our opinion, the financial statements set out on pages 30 to 53 fairly reflect the financial position

and operations of the New Zealand Fire Service Commission for the year ended 30 June 1999.

Dame Margaret Bazley DNZM Alison Timms

Chairperson Chief Executive (Acting)

28 October 1999 28 October 1999

for the year ended 30 June 1999

Financial Statements Year Ended 30 June 1999

Report of the

Audit Office

To the readers of the financial statements of the New Zealand Fire Service Commission for the year ended 30 June 1999

We have audited the financial statements on pages 30 to 53. The financial statements provide information about the past

financial and service performance of the New Zealand Fire Service Commission and its financial position as at 30 June 1999.

This information is stated in accordance with the accounting policies set out on pages 30 to 33.

Responsibilities of the New Zealand Fire Service Commission

The Public Finance Act 1989 and the Fire Service Act 1975 require the New Zealand Fire Service Commission to prepare financial

statements in accordance with generally accepted accounting practice which fairly reflect the financial position of the New Zealand

Fire Service Commission as at 30 June 1999, the results of its operations and cash flows and the service performance achievements

for the year ended 30 June 1999.

Auditor’s responsibilities

Section 43(1) of the Public Finance Act 1989 requires the Audit Office to audit the financial statements presented by the New Zealand

Fire Service Commission. It is the responsibility of the Audit Office to express an independent opinion on the financial statements and

report its opinion to you.

The Controller and Auditor-General has appointed E M Mason, of Audit New Zealand, to undertake the audit.

Basis of opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements.

It also includes assessing:

the significant estimates and judgements made by the New Zealand Fire Service Commission in the preparation of the

financial statements, and

• whether the accounting policies are appropriate to the New Zealand Fire Service Commission’s circumstances, consistently

applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards, including the Auditing Standards issued by

the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and

explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the

financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated

the overall adequacy of the presentation of information in the financial statements.

We have carried out other assurance related assignments for the New Zealand Fire Service Commission. Other than these assignments

and in our capacity as auditor acting on behalf of the Controller and Auditor-General, we have no relationship with or interest in the

New Zealand Fire Service Commission.

Unqualified opinion

We have obtained all the information and explanations we have required.

In our opinion the financial statements of the New Zealand Fire Service Commission on pages 30 to 53:

• comply with generally accepted accounting practice, and

• fairly reflect:

- the financial position as at 30 June 1999,

- the results of its operations and cash flows for the year ended on that date, and

- the service performance achievements in relation to the performance targets and other measures set out in the forecast financial

statements for the year ended on that date.

Our audit was completed on 28 October 1999 and our unqualified opinion is expressed as at that date.

E M Mason

Audit New Zealand

On behalf of the Controller and Auditor-General

Wellington, New Zealand

29


30

Statement of

Accounting Policies

for the year ended 30 June 1999

Reporting entity

These are the financial statements of the New Zealand Fire Service Commission (the Fire

Service and the Commission), a Crown entity under the Public Finance Act 1989 and a

body constituted under Section 4 of the Fire Service Act 1975. These financial statements

have been prepared in accordance with these Acts.

Measurement base

The accounting principles recognised as appropriate for the measurement and

reporting of financial performance, cash flows and financial position on a historical

cost basis, modified by the revaluation of certain assets, have been applied in the

preparation of these financial statements.

Changes in accounting policies

Land and buildings are revalued on the basis of net current value at 30 June 1999,

to comply with SSAP 28. Net current value is the price for which an asset might

reasonably be expected to be sold, less the costs of disposal that could reasonably

be anticipated. In prior years land and buildings were revalued on a basis

appropriate for the property’s intended use. The change in accounting policy has

been made to more accurately reflect the value of land and buildings in the financial

statements. The effect of this change in policy is a $1.452m reduction in the value

of land and buildings.

All other policies have been applied on bases consistent with those used in the

previous year.

Financial Statements Year Ended 30 June 1999

ACCOUNTING POLICIES

The following accounting policies, which materially

affect the measurement of financial performance and

financial position, have been applied:

Budget

The budget figures are those presented in the estimates

and approved by the Minister of Internal Affairs.

The budget figures have been prepared in accordance

with generally accepted accounting practice and are

consistent with the accounting policies adopted by the

Commission for the preparation of the financial statements.

Revenue recognition

Insurance levies are mainly based on the indemnity value

of the property or the amount for which the property is

insured against fire, as set out in sections 48 to 53A

of the Fire Service Act 1975. Section 48(12) of the

Fire Service Act 1975 deems this to be revenue of the

Fire Service upon receipt, therefore insurance levies are

recognised on a cash basis.

The levy revenue recognised in the statement of financial

performance is set at the level required to cover the

actual net expenditure of the Commission, in

accordance with section 47 of the Fire Service Act

1975. Any shortfall or excess is recognised as an asset

or liability in the statement of financial position.

As a result of the changes in the Fire Service Amendment

Act 1998, the Crown no longer contributes to the

Commission’s revenue, effective from 1 July 1998.

The revenue recognised in the statement of financial

performance includes all revenue from operating and

special fund sources. Special funds have been set up in

accordance with the Fire Service Act 1975 to finance

activities related to special purposes.

Donated services

The operations of the Fire Service are dependent

on the services provided by volunteer firefighters.

Their contributions are essential for enabling the Fire

Service to provide a comprehensive, efficient and effective

service throughout New Zealand. Because of the difficulty

of determining their value with reliability, donated

services are not recognised in these financial statements.

Investments

Investments are valued at the lower of cost or net

realisable value.

Accounts receivable

Accounts receivable are stated at net realisable value

after providing for doubtful and bad debts.

Inventories

Inventories are valued at the lower of weighted average

cost or net realisable value.

Fixed assets

Land and buildings are revalued on the basis of net

current value, as determined by an independent

registered valuer. Net current value is the price for which

an asset might reasonably be expected to be sold,

less the costs of disposal that could reasonably be

anticipated. The valuation of land and buildings is on a

three year cyclical basis.

All other fixed assets are recorded at historical cost.

Additions to land and buildings between revaluations

are recorded at cost.

The increase/(decrease) in valuations is credited/

(debited) to the revaluation reserve.

Individual fire brigades have independently acquired or

received additional fixed assets, largely through fundraising

and donations from local communities. While these

assets are available for use in general operation, they

are not considered to be “controlled” by the Fire Service

as defined under the Statement of Concepts for General

Purpose Financial Reporting. For this reason, such assets

are not included in the statement of financial position.

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Depreciation

Fixed assets, other than land, are depreciated on a

straight line basis at rates estimated to write off the cost

(or revalued amount), less the residual value, over their

useful lives. At each revaluation of a building a

reassessment is made of that particular asset’s useful life.

The expected useful lives of major classes of asset are:

• Buildings 50-80 years

• Fire appliances 15 years

• Motor vehicles 5 years

• Communications equipment 5 years

• SITE 10 years

• Plant and equipment 4-10 years

• Furniture and fittings 5 years

• EDP equipment 4 years

• Leasehold improvements Life of lease

Capital work in progress is not depreciated. The total

cost of a project is transferred to the fixed asset class on

its completion and then depreciated.

Employee and volunteer entitlements

Provision is made in respect of the Fire Service’s liability

for annual leave, long service leave and gratuities.

Annual leave has been calculated on an entitlement

basis at current remuneration rates. Long service leave

and gratuities have been calculated on an actuarial

basis. The actuarial basis recognises the liability

attributable to employees’ services already rendered,

and the liability is measured using expected future cash

outflows discounted to present value.

Debt

Debt in the form of local authority stock has been issued

at par value.

Foreign currency

Foreign currency transactions are converted at the

New Zealand dollar exchange rate at the date of the

transaction. Where a forward exchange contract has

been entered into, the forward exchange rate is used

to convert the transaction into New Zealand dollars.

Consequently, no gain or loss resulting from the

difference between the forward exchange contract rate

and the settlement date spot rate is recognised.

Monetary assets and liabilities held in foreign currencies

are translated at the closing mid-point exchange rate at

balance date and the resulting unrealised gain or loss

recognised in the statement of financial performance.

Financial instruments

The Fire Service uses foreign exchange forward

contracts to manage its foreign currency exposure in

relation to the purchase of fixed assets. All costs relating

to these financial instruments are capitalised.

As part of its normal operations the Fire Service is party

to other financial instruments such as bank accounts,

investments, accounts receivable, accounts payable and

debt. All these financial instruments are recognised in the

statement of financial position and all revenues and

expenses in relation to these financial instruments are

recognised in the statement of financial performance.

Goods and Services Tax (GST)

The financial statements are prepared on a GST exclusive

basis, with the exception of accounts receivable and

accounts payable, which are stated with GST included.

Financial Statements Year Ended 30 June 1999

Taxation

The Fire Service is exempt from the payment of income

tax in accordance with both the Income Tax Act 1994

and the Fire Service Act 1975.

Leases

The Fire Service leases office premises and office

equipment, mainly photocopiers and facsimile

machines. As the lessor retains all the risks of ownership,

these leases are classified as operating leases.

Operating lease costs are spread over the period of

lease.

Commitments

Future expenses and liabilities to be incurred on

contracts that have been entered into at balance date

are disclosed as commitments to the extent that there

are equally unperformed obligations.

Commitments relating to employment contracts are not

disclosed.

Contingent liabilities

Contingent liabilities are disclosed at the point at which

the contingency becomes evident.

Statement of cash flows

a. Cash is defined as notes and coins, current bank

balances and investments that can be converted to

cash within two days.

b. Operating activities include cash received from all

income sources and records the cash payments made

for the supply of goods and services.

c. Investing activities are those activities relating to the

acquisition and disposal of non-current assets.

d. Financing activities are those activities that result in

changes to equity or debt.

Output costing

The total cost of outputs is total expenditure less interest

income and other revenue earned by the Commission.

It excludes fund income and expenditure.

Direct costs are those costs directly attributed to an output.

Indirect costs include all costs other than direct costs.

The Fire Service has derived the cost of outputs using the

following cost allocation system:

a. Direct costs are directly charged to outputs.

b. Indirect costs relating to output delivery,

administration and financing costs are allocated

to the operational readiness output.

c. Allocations are made from operational readiness

to other outputs using incident, personnel and time

factor bases. The incident, personnel and time

factors are derived from the Fire Incident Reporting

System (FIRS) and Non-Emergency Activity

Management System (NEAMS) operated by the

Fire Service. Changes in the level of incidents and

activities have the effect of varying the relative cost

allocation between outputs.

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Statement of

Financial Performance

for the year ended 30 June 1999

Actual Budget Actual

1999 1999 1998

Note $000 $000 $000

Operating revenue

Levy 9 166,322 165,901 172,630

Crown 0 0 12,496

Funding of Fire Service operations 166,322 165,901 185,126

Interest 2,530 2,387 6,832

Other revenue 1 7,235 6,997 9,834

Total operating revenue 176,087 175,285 201,792

Operating expenditure

Personnel 2 110,364 116,439 148,391

Other 3 65,179 58,246 55,205

Total operating expenditure 175,543 174,685 203,596

Net surplus/(deficit) 4 544 600 (1,804)

Statement of

Movements in Equity

for the year ended 30 June 1999

Actual Budget Actual

1999 1999 1998

Note $000 $000 $000

Equity at beginning of year 179,367 179,400 171,330

Net surplus/(deficit) 4 544 600 (1,804)

Net increase in revaluation reserve 13 1,397 2,600 9,841

Total recognised revenue and expenditure for the period 1,941 3,200 8,037

Equity at end of year 181,308 182,600 179,367

The statement of accounting policies and the accompanying notes form an integral part of these financial statements.

Financial Statements Year Ended 30 June 1999

Statement of

Financial Position as at 30 June 1999

Actual Budget Actual

1999 1999 1998

Note $000 $000 $000

Current assets

Cash and investments 6 14,993 15,000 91,113

Other current assets 7 4,181 2,800 6,000

Total current assets 19,174 17,800 97,113

Non-current assets

Fixed assets 8 275,835 286,471 254,986

Total non-current assets 275,835 286,471 254,986

Total assets 295,009 304,271 352,099

Current liabilities

Levy in advance 9 33,804 35,125 67,226

Employee and volunteer entitlements 10 5,513 7,000 8,960

Current portion of debt 11 22,000 23,588 30,848

Other current liabilities 12 22,899 24,958 40,392

Total current liabilities 84,216 90,671 147,426

Non-current liabilities

Employee and volunteer entitlements 10 26,785 28,300 22,606

Term debt 11 2,700 2,700 2,700

Total non-current liabilities 29,485 31,000 25,306

Total liabilities 113,701 121,671 172,732

Equity

Equity and funds 14 100,487 100,600 99,963

Revaluation reserve 13 80,821 82,000 79,404

Total equity 181,308 182,600 179,367

Total liabilities and equity 295,009 304,271 352,099

The statement of accounting policies and the accompanying notes form an integral part of these financial statements.

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Statement of

Cashflows

for the year ended 30 June 1999

Actual Budget Actual

1999 1999 1998

Note $000 $000 $000

Cash flows from operating activities

Cash was provided from:

Levy 9 132,900 133,765 171,922

Crown 0 0 12,496

Interest 2,970 2,387 7,329

Other revenue 8,459 6,397 8,065

144,329 142,549 199,812

Cash was disbursed to:

Employees (127,712) (109,439) (131,745)

Suppliers (40,171) (54,143) (35,722)

Net GST paid (257) 0 (1,135)

Interest (1,083) (1,545) (1,696)

(169,223) (165,127) (170,298)

Net cash flows from operating activities 5 (24,894) (22,578) 29,514

Cash flows from investing activities

Cash was provided from:

Disposal of fixed assets

Cash was disbursed to:

1,866 800 681

Purchase of fixed assets (44,244) (47,110) (27,706)

Net cash flows from investing activities (42,378) (46,310) (27,025)

Cash flows from financing activities

Cash was provided from:

Borrowing debt

Cash was disbursed to:

0 0 14,317

Repayment of debt (8,848) (7,212) 0

Net cash flows from financing activities (8,848) (7,212) 14,317

Net increase/(decrease) in cash and investments (76,120) (76,100) 16,806

Add cash and investments at beginning of year 91,113 91,100 74,307

Cash and investments at end of year 6 14,993 15,000 91,113

The statement of accounting policies and the accompanying notes form an integral part of these financial statements.

Financial Statements Year Ended 30 June 1999

Statement of

Commitments

as at 30 June 1999

Actual Actual

1999 1998

$000 $000

Capital commitments 2,089 31,156

Operating lease commitments

Not later than one year 1,957 1,746

Later than one year and not later than two years 1,526 1,200

Later than two years and not later than five years 1,958 1,319

Later than five years 665 998

Total operating lease commitments 6,106 5,263

Total commitments 8,195 36,419

Capital commitments relate to firm orders placed before the end of year. The majority of these are contracts for fire

appliances and computer system implementation. Commercial penalties exist for the cancellation of these contracts.

Operating lease commitments include lease payments for premises, computer equipment, telephone exchange systems,

facsimile machines and photocopiers.

Statement of

Contingent Liabilities

as at 30 June 1999

Actual Actual

1999 1998

$000 $000

Personal grievances 273 1,300

Legal proceedings 282 258

Total contingent liabilities 555 1,558

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Notes to the

Financial Statements

for the year ended 30 June 1999

Note 1 - Other revenue

1999 1998

$000 $000

Commercial services 972 1,248

Private fire alarms revenue 1,679 1,575

Rural fire fighting contributions 1,195 697

Loss of Medical (Residual) Fund 0 841

False alarms 416 654

Rents 662 563

Contributions 953 2,361

Gain on disposal of fixed assets 127 37

Miscellaneous revenue 1,231 1,858

Total other revenue 7,235 9,834

Contributions of $0.953m were received from “good corporate citizens”. These are entities which do not insure major

property portfolios and therefore have no liability for Fire Service levy payments.

In 1998 there was a transfer of $0.841m from the Loss of Medical (Residual) Fund to revenue because in the opinion of

the Commission it was unnecessary to retain these monies in the fund (as provided in section 58A(5) of the Fire Service

Act 1975).

Note 2 - Personnel expenditure

1999 1998

$000 $000

Salaries and wages 103,009 101,286

Restructuring provision (17,499) 18,080

Restructuring costs 0 3,774

Superannuation subsidy 9,301 10,711

ACC 4,142 5,385

Volunteers 4,564 4,483

Other personnel expenditure 6,847 4,672

Total personnel expenditure 110,364 148,391

The credit of $17.499m is the write-back of the unspent portion of the restructuring provision established in the previous

financial year. A strict interpretation of the Statement of Concepts would include the reversal of the provision as revenue.

However, on the ground of understandability to the readers of the financial statements the reversal has been shown as a

write back of expenditure. This is consistent with where the restructuring provision was reported in the 1997/98 financial

statements.

Financial Statements Year Ended 30 June 1999

If the reversal of the provision had been reported as revenue, then the impact would have been to increase other revenue

and personnel expenditure by $17.499m (budget $17.642m), resulting in total operating revenue of $193.586m

(budget $192.927m).

Other personnel expenditure includes the $3.608m expense arising from the change to recognise long service leave and

gratuities on an actuarial basis.

Note 3 - Other expenditure

1999 1998

$000 $000

Remuneration of auditors - audit fees 150 150

Remuneration of auditors - other services 37 39

Fees paid to Commissioners 186 167

Loss on disposal of fixed assets 258 0

Fixed asset write-offs 1,778 0

Bad debts 3 6

Increase in provision for doubtful debts 46 0

Interest 1,020 1,711

Depreciation 16,051 12,074

Rental expense on operating leases 2,270 1,819

Occupancy costs 7,606 7,724

Operational expenditure 17,704 16,605

Administrative expenditure 18,070 14,910

Total other expenditure 65,179 55,205

Included in administrative expenditure is $1.0m expenditure related to the SITE project. This expenditure was charged against

work in progress, whereas it should have been expensed. $0.65m of this expenditure was incurred in prior periods.

Note 4 - Net surplus/(deficit)

The Fire Service operations are totally funded from levy receipts (and in 1998 Crown contribution) and produce no

surplus or deficit. However, the Fire Service has a number of funds which produced the following net surplus/(deficit) for

the period.

Revenue Expenditure Net surplus Net surplus

/(deficit) /(deficit)

1999 1999 1999 1998

$000 $000 $000 $000

Contestable Research Fund 500 (86) 414 0

Loss of Medical Fund 4 0 4 (838)

Rural Fire Fighting Fund 2,481 (2,333) 148 (930)

Volunteer Needs Fund 0 (22) (22) (36)

Total 2,985 (2,441) 544 (1,804)

The Rural Fire Fighting Fund revenue includes levy funding of $1.250m.

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Note 5 - Reconciliation of net surplus/(deficit) with net cash flows from operating activities

1999 1998

$000 $000

Net surplus/(deficit) 544 (1,804)

Add/(less) non-cash items:

Depreciation 16,051 12,074

Bad debts 3 6

Increase provision for doubtful debts 46 0

Loss/(gain) on disposal of fixed assets 131 (37)

Fixed asset write-offs 1,778 0

Provision for restructuring (17,499) 18,080

Provision for non-current employee and volunteer entitlements 4,179 761

Total non-cash items 4,689 30,884

Add/(less) movements in working capital:

Increase in accounts payable and accruals 5,907 5,214

Decrease in current employee and volunteer entitlements (3,447) (2,195)

Decrease in levy in advance (33,422) (708)

(Increase)/decrease in other current assets 835 (1,877)

Net movements in working capital (30,127) 434

Net cash flows from operating activities (24,894) 29,514

Note 6 - Cash and investments

1999 1998

$000 $000

Cash and bank 1,040 (1,441)

Investments 13,953 92,554

Total cash and investments 14,993 91,113

Investments include deposits at banks and registered certificates of deposit. The average interest rate on investments at 30

June 1999 was 4.6% (1998 8.6%).

Note 7 - Other current assets

1999 1998

$000 $000

Accounts receivable 3,920 5,310

Less provision for doubtful debts (57) (58)

3,863 5,252

Prepayments 102 614

Inventories 216 134

Total other current assets 4,181 6,000

Financial Statements Year Ended 30 June 1999

Note 8 - Fixed assets

Cost or Accumulated Net Book

Valuation Depreciation Value

1999 1999 1999

$000 $000 $000

Land 53,441 0 53,441

Buildings 110,563 0 110,563

Fire appliances 138,922 77,119 61,803

Motor vehicles 2,194 1,916 278

Communications equipment 16,118 8,198 7,920

SITE 17,904 1,573 16,331

Plant and equipment 27,753 11,786 15,967

Furniture and fittings 3,590 2,748 842

EDP equipment 7,725 5,547 2,178

Leasehold improvements 1,451 690 761

Work in progress 5,751 0 5,751

Total fixed assets 385,412 109,577 275,835

Cost or Accumulated Net Book

Valuation Depreciation Value

1998 1998 1998

$000 $000 $000

Land 49,999 0 49,999

Buildings 108,536 2,503 106,033

Fire appliances 129,369 72,125 57,244

Motor vehicles 2,801 2,148 653

Communications equipment 11,524 11,009 515

Plant and equipment 21,367 9,825 11,542

Furniture and fittings 3,438 2,544 894

EDP equipment 6,434 4,938 1,496

Leasehold improvements 920 623 297

Work in progress 26,313 0 26,313

Total fixed assets 360,701 105,715 254,986

Land and buildings were revalued at net current value by Quotable Value New Zealand, members of the New Zealand

Institute of Valuers, as at 30 June 1999.

All land and buildings for disposal are subject to a consultative clearance process set up for the settlement of Maori

land claims.

The Shared Information Technology Environment (SITE) asset is the systems and technology platform that supports the

business processes of receiving emergency calls and dispatching resources to those calls. These systems use the Intergraph

Public Safety Ltd I/CAD software, Land Mobile Radio (LMR) network and associated telecommunications infrastructures,

and are physically located in three co-located communication centres. The radios and pagers have been capitalised as

communications equipment.

The Fire Service shares SITE with the New Zealand Police. The value capitalised reflects the Fire Service’s proportional

ownership of the SITE asset.

Work in progress relates mainly to the construction of new appliances $4.5m (1998 appliances $5.2m and SITE $14.7m).

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Note 9 - Levy in advance

1999 1998

$000 $000

Levy in advance at beginning of year 67,226 67,934

Levy contribution collected 132,900 171,922

Levy contribution available for operations 200,126 239,856

Funding of Fire Service net operating expenditure 165,072 171,130

Funding of Rural Fire Fighting Fund 1,250 1,500

Levy used to fund operations 166,322 172,630

Levy in advance at end of year 33,804 67,226

Note 10 - Employee and volunteer entitlements

1999 1998

$000 $000

Accrued salaries and wages 625 3,290

Provision for annual leave 3,668 4,480

Provision for long service leave and gratuities 1,220 1,190

Current employee and volunteer entitlements 5,513 8,960

Provision for long service leave and gratuities 26,785 22,606

Non-current employee and volunteer entitlements 26,785 22,606

Long service leave and gratuities have been calculated on an actuarial basis in the current financial year. The actuarial

basis recognises the liability attributable to the employees’ services already rendered, and the liability is measured using

expected future cash outflows discounted to present value. In prior years long service leave and gratuities were calculated

on an actual entitlement basis. The actual entitlement basis only recognises a liability when an employee had completed

the qualifying period of service and the liability is measured using current remuneration rates. The effect of this change is

to recognise an additional $3.608m personnel expenditure in the statement of financial performance (refer to note 2).

Note 11 - Debt

1999 1998 1999 1998

Interest % Interest % $000 $000

Not later than one year 4.8-4.9 8.0-9.3 22,000 30,848

Current portion of debt 22,000 30,848

Later than one year and not later than two years 8.2 - 1,700 0

Later than two years and not later than five years 16.0 8.2 1,000 1,700

Later than five years - 16.0 0 1,000

Term debt 2,700 2,700

Current debt is comprised of money market deposits and term debt is comprised of unsecured local authority stock.

Financial Statements Year Ended 30 June 1999

Note 12 - Current liabilities

1999 1998

$000 $000

Accounts payable and accruals 22,899 22,312

Restructuring provision 0 18,080

Total current liabilities 22,899 40,392

Note 13 - Revaluation reserve

Land Buildings Total

1999 1999 1999

$000 $000 $000

Revaluation reserve at beginning of year 41,894 37,510 79,404

Revaluations 3,300 (1,903) 1,397

Realisation of prior year revaluations (41) 61 20

Revaluation reserve at end of year 45,153 35,668 80,821

Land Buildings Total

1998 1998 1998

$000 $000 $000

Revaluation reserve at beginning of year 33,314 36,249 69,563

Revaluations 8,580 1,261 9,841

Revaluation reserve at end of year 41,894 37,510 79,404

Note 14 - Equity and funds

Balance at Net Loss on Balance

beginning surplus/ realisation at end

of year (deficit) of year

1999 (note 4) (note 13) 1999

$000 $000 $000 $000

Fire Service equity 98,283 0 (20) 98,263

Reserve Fund 380 0 0 380

Contestable Research Fund 0 414 0 414

Loss of Medical Fund 157 4 0 161

Rural Fire Fighting Fund 679 148 0 827

Volunteer Needs Fund 464 (22) 0 442

Total 99,963 544 (20) 100,487

Balance at Net Contribution Balance

beginning surplus/ to Reserve at end

of year (deficit) Fund of year

1998 (note 4) 1998

$000 $000 $000 $000

Fire Service equity 98,633 0 (350) 98,283

Reserve Fund 30 0 350 380

Loss of Medical Fund 995 (838) 0 157

Rural Fire Fighting Fund 1,609 (930) 0 679

Volunteer Needs Fund 500 (36) 0 464

Total 101,767 (1,804) 0 99,963

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The Reserve Fund was established under section 58 of the Fire Service Act 1975. Money from the fund is applied

for capital expenditure as allowed for in the approved estimates of expenditure, the acquisition of land where this has

not been allowed for in any approved estimates, or the payment of any costs incurred in the subdivision of any land.

In the disposal of any property, the proceeds are to be credited to the fund. The balance at end of year represents

unapplied receipts from asset sales.

The Contestable Research Fund was established in 1998/99 under section 58A of the Fire Service Act 1975. Money

from this fund is available on a contestable basis to internal and external parties for research on fire related matters, as

recommended by the Research Advisory Group and approved by the Commission.

The Loss of Medical (Residual) Fund was established under section 58A of the Fire Service Act 1975. This fund

was established to provide insurance cover for personnel who were contributing to a former medical compensation

insurance scheme and who have not joined the New Zealand Fire Service Superannuation Fund.

The Rural Fire Fighting Fund was established under section 46A of the Fire Service Act 1975. Money from the fund

is applied towards meeting costs of Fire Authorities in the control, restriction, suppression or extinction of fires. The

fund is financed by a first charge against the proceeds of the levy and a Crown Grant through the Department

of Conservation.

The Volunteer Needs Fund was established in 1996/97 under section 58A of the Fire Service Act 1975 to

provide a fund from which to begin addressing the issues identified as essential to the ongoing development of the

volunteer force.

Note 15 - Financial instruments

The Fire Service is party to financial instruments as part of its everyday operations. These financial instruments include

bank accounts, investments, accounts receivable, accounts payable, debt and foreign currency forward contracts.

Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in exchange rates.

The New Zealand Fire Service Commission enters into foreign exchange forward contracts to manage its foreign

currency exposure in relation to the purchase of fixed assets. Foreign exchange forward contracts in place at 30 June

1999 were $US 94,500 which converts to $NZ 167,000 (1998 GBP 95,000 converted to $NZ 270,000).

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.

The Fire Service Act 1975 does not provide for the Commission to enter into hedging transactions, and therefore

interest rate investments and debt are not hedged. To limit the interest rate risk the Commission’s policy restricts the range

of financial instruments that can be entered into.

Credit risk

Credit risk is the risk that a third party will default on its obligation to the Fire Service, causing a loss to be incurred.

In the normal course of business the New Zealand Fire Service Commission incurs credit risk from trade debtors and

transactions with financial institutions.

The Commission places its investments with financial institutions that have a high credit rating and does not require any

collateral to support these financial instruments. There is no significant concentration of credit risk arising from trade debtors.

Fair values

The fair value of financial instruments is equivalent to the carrying amount disclosed in the statement of financial position.

Financial Statements Year Ended 30 June 1999

Note 16 - Related party disclosures

The Fire Service is a Crown entity. The Government influences the roles of the Commission. All transactions entered into

with Government Departments, State Owned Enterprises and other Crown entities are conducted at arms length on

normal business terms.

The Office of the Commission maintains a Conflict of Interest Register for members of the Commission. During the

period no transactions were entered into with members of the Commission (other than payment of their fees and

reimbursement of their expenses).

There were no other related party transactions.

Note 17 - Remuneration of Commissioners

Remuneration received by members of the New Zealand Fire Service Commission during the year was:

Dame Margaret Bazley DNZM (Chairperson from 21 May 1999) –

Mr Roger Estall (Chairman to 20 May 1999) $115,000

Mr Brian Stanley (Deputy Chairman from 16 December 1998) $43,000

Mr Douglas Martin (Deputy Chairman to 10 December 1998) $24,000

Mr Neville Young (member from 1 April 1999) $4,000

Dr Roger Blakeley is a member of the New Zealand Fire Service Commission by virtue of his position as Secretary for

Internal Affairs. As such he does not receive remuneration as a member of the New Zealand Fire Service Commission.

Note 18 - Employee remuneration

Number of employees receiving total remuneration over $100,000 per annum:

Band $000 Number Number

1999 1998

$100 - $110 2 2

$110 - $120 2 3

$120 - $130 5 4

$130 - $140 2 3

$140 - $150 2 0

$150 - $160 2 2

$220 - $230 * 1 1

* Chief Executive (Acting)

Note: Salaries have been annualised for current employees who joined the Fire Service part way through the year.

Remuneration paid to former employees:

1999 1998

Number of former employees 3 13

Normal remuneration $0.402m $0.981m

Severance $0.337m $1.312m

Note 19 - Segmental reporting

The Fire Service operates in the industry of providing fire safety and other fire emergency services. These services are

provided throughout New Zealand. The Commission is also the National Rural Fire Authority. This function involves the

co-ordination of fire services provided by Rural Fire Authorities. These authorities include district councils, some forest

owners and land owning Government departments. Funding for this is administered through the Rural Fire Fighting Fund.

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Statement of

Objectives and Service

Performance for the year ended 30 June 1999

The output classes and outputs set out in the Purchase Agreement reflect the Fire Service Commission’s emphasis on

reducing the incidence and consequences of fire. The outputs contained in this agreement reflect the desire to improve

the outcomes of the number of fires, structure damage and fire injuries and fatalities.

Output Performance Summary

The purchase agreement for 1998/99 contains 74 performance measures. Of these performance measures the New

Zealand Fire Service has met 71% of the 56 performance measures over which it has direct control. A summary of the

output performance is set out below.

Measures Controlled by Fire Service Not

directly

Output Class Met Not Met Total controlled Total

1 Reducing the number and impact of fires,

other emergencies and false alarms 11 4 15 2 17

2 Fire Service operations

3 National Rural Fire Authority

11 8 19 7 26

co-ordination

4 Policy advice to the Fire Service

14 2 16 3 19

Commission and Ministerial servicing 0 2 2 6 8

5 Levy collection and audit

6 Funding Fire Service Commission

3 0 3 0 3

governance 1 0 1 0 1

40 16 56 18 74

Financial Statements Year Ended 30 June 1999

Notes on Output measures not achieved

Class 1

Output1.2 Formal training of the public in fire safety skills

Performance measure 1.2.1

The original framework and plan to increase the level of public fire safety skills was superceded by the

National Promotions Plan (NPP). The NPP for fire safety education was scheduled for completion by August

30 of the 1999/2000 financial year. At the time of publishing this report it has been developed and is

being implemented.

Output1.5 Initiate actions to redress buildings that are deemed dangerous by reason of fire hazard

Performance measure 1.5.2

Following the identification of a dangerous building, the Fire Service is required to immediately notify

the relevant territorial authority. Performance measure 1.5.2 requires a detailed report to follow this

notification within 48 hours. Due to the complex and technical nature of this work, and the need to

maintain a high standard of reporting, the Fire Service did not meet the time requirement in all cases.

One pleasing aspect of this work is that all buildings identified by the Fire Service as dangerous had

remedial action taken to improve public safety.

Class 2

Output 2.1 Operational readiness

Performance measures 2.1.8 and 2.1.9

The review and update of the code of practice for water supply has entailed development of the

code with stakeholder representatives, and wide consultation with interested parties. This resulted in the

addressing of additional quality assurance procedures which required extending completion dates into the

1999/2000 year.

As a result of this approach the revised code of practice, when completed, will reflect stakeholder views,

and be more widely accepted by territorial authorities.

Output 2.2 Ensuring buildings have an approved evacuation scheme where required

Performance measures 2.2.1 to 2.2.4

The targets set for this output assumed that modernisation of the Fire Service would have taken place, and

that the resulting staff productivity improvements would have been focused on achieving these measures.

Due to the Employment Court injunction this has not occurred across the board. However, considerable

progress has been made towards completing regional building registers, and making sure that existing

evacuation schemes are workable. Also, a comprehensive fire and evacuation guide for building

owners has been developed. This spells out their obligations for evacuation schemes and procedures.

Output 2.3 Responding to incidents

Output 2.4 Responding to false alarms

Performance measures 2.3.2 and 2.4.2

Achieving these outputs has also been constrained by the Employment Court’s injunction, limiting the

development of innovative and flexible resourcing options. Long term the Fire Service is committed to

improving response times to fire incidents through improved station locations, innovation and modern work

practices. Hence, the development of the National Commander’s Operational Response Guidelines to

provide a blueprint for optimising station locations, and promoting innovative solutions to resource

deployment.

Studies are underway to determine the best sites for future fire stations to improve response times. The aim

is to implement the results over the next three to five years.

47


48

Class 4

Output 4.1 Policy advice and Ministerial servicing

Performance measures 4.1.4 and 4.1.8

The Fire Service was involved in a number of litigations and other significant and time-consuming

procedures during the year. As a result, reports and policy advice to the Commission were not always

within specified timeframes, and quality was variable.

Significant improvement has been made within the last few months.

Cost of Outputs (net expenditure)

1999 1999 1998

Actual Budget Actual

$000 $000 $000

1 Reducing the number and impact of fires,

other emergencies and false alarms

1.1 Improve public knowledge and awareness

of the risk of fire and of fire safety behaviour 578 589 610

1.2 Formal training of the public in fire safety skills

1.3 Risk reduction advice on fire, hazardous substances

290 294 (670)

and other non-fire hazards and false alarms 981 999 1,034

1.4 Advice in relation to incidents attended by the Fire Service

1.5 Initiate actions to redress buildings that are deemed

175 179 185

dangerous by reason of fire hazard 868 883 914

2,892 2,944 2,073

2 Fire Service operations

2.1 Operational readiness

2.2 Ensuring buildings have an approved evacuation

116,201 115,357 130,855

scheme where required 2,892 2,943 3,048

2.3 Responding to incidents 28,971 30,875 34,093

2.4 Responding to false alarms 10,049 8,685 10,400

158,113 157,860 178,396

3 National Rural Fire Authority co-ordination

3.1 Rural fire standards and co-ordination 472 458 248

3.2 Rural fire advice and support 887 869 616

3.3 Grant administration 1,024 1,016 908

2,383 2,343 1,772

4 Policy advice to the Fire Service Commission

and Ministerial servicing 593 503 885

5 Levy collection and audit 500 500 500

6 Funding Fire Service Commission governance 591 501 -

Total cost of outputs 165,072 164,651 183,626

Financial Statements Year Ended 30 June 1999

Output Performance

Measure Performance

Class 1 Reducing the number and impact of fires, other emergencies and false alarms

This output class includes all outputs designed to reduce the number and scale of fires, the

scale of other emergencies and the number of false alarms and to increase the ability of

the public, including identified at-risk groups, to cope effectively with fire and other

emergencies when they occur.

Output 1.1 Improve public knowledge and awareness of the risk of fire and of fire safety behaviour

This output comprises promotions, seminars, publications and programmes designed to

improve public knowledge of fire risk and good fire safety practices in the community.

1.1.1 One national promotion plan will be in place. Achieved

1.1.2 Eight regional promotion plans will be in place. Achieved

1.1.3 Promotion plans will meet 80% of their objectives. Achieved

1.1.4 The promotion plans will be reviewed and approved by 30 September 1998. Each of

the promotion plans will include for all promotions their objectives, target groups, and

implementation and evaluation methods.

Achieved

Output 1.2 Formal training of the public in fire safety skills

This output encompasses training in fire protection, suppression and related skills for non-Fire

Service personnel, excluding the training and education of persons engaged in rural fire

management. The output only covers training that is formally assessed and /or certified.

1.2.1 Update and modify the framework and plan, for next financial year, to increase the level Not

of the public’s fire safety skills by 30 May 1999. Achieved

1.2.2 An estimated 12,000 to 14,000 people will be trained in fire safety and related skills

in urban areas.

12,295

1.2.3 95% of trainees will satisfactorily complete the training. 95%

Output 1.3 Risk reduction advice on fire, hazardous substances and other non-fire hazards and

false alarms

This output encompasses the advice provided by the Fire Service to a range of

organisations and individuals, both national and local, public and private sector. The

advice covers standards, regulations or codes of practice, or technology, designed to

manage fire hazards, hazardous substance emergencies, other non-fire emergencies and

reducing false alarms.

1.3.1 An estimated range of 9,000 to10,000 written reports will be provided. 5,080

1.3.2 90% of those receiving written advice will indicate satisfaction with the service received,

in terms of courtesy, timeliness, clarity and usefulness, as determined by independent

customer survey.

92%

1.3.3 98% of written advice will be technically accurate, as verified by internal audit. 99%

1.3.4 Eight regional plans to reduce the number of false alarms will be developed. Achieved

Output 1.4 Advice in relation to incidents attended by the Fire Service

This output covers advice to a range of public and private organisations on the causes of

fires, hazardous substance emergencies and other incidents attended by the Fire Service.

The output also covers the provision of information and advice on other aspects of

incidents attended by the New Zealand Fire Service.

1.4.1 An estimated range of 700 to 900 written reports will be provided in response to requests. 572

1.4.2 In 95% of cases the Fire Service will report within the timeframe agreed with the

requesting organisation.

99%

1.4.3 90% of customers will indicate satisfaction with advice, in terms of its timeliness, courtesy,

and clarity, as determined by independent customer survey.

83%

49


50

Output 1.5 Initiate actions to redress buildings that are deemed dangerous by reason of fire hazard

This output encompasses the actions undertaken by the Fire Service to ensure buildings are

safe from fire hazard. The output includes providing sufficient information to Territorial

Authorities to enable them to take corrective action.

1.5.1 100% of identified dangerous buildings will be notified to the Territorial Authority together

with sufficient information for the Territorial Authority to take corrective action.

Achieved

1.5.2 Corrective action will be initiated, within 48 hours, on all dangerous buildings identified Not

under output 1.5.1. Achieved

1.5.3 All buildings notified to the Territorial Authority (under output 1.5.1) are either closed,

made safe or legal action taken.

Achieved

Class 2 Fire Service operations

This output class encompasses the preparedness at all times of resources sufficient to

respond to fire and other emergencies, should they occur - including administering the Fire

Service Act 1975 in relation to evacuation schemes. The output also covers responding to

fire and other emergencies once they have occurred.

Output 2.1 Operational readiness

This output encompasses the preparedness at all times of resources sufficient to respond

to fire and other emergencies, should they occur - excluding activities in relation to

evacuation procedures or schemes. This output also comprises the participation of the

Fire Service with other emergency management services and agencies in management of

community scale incidents.

2.1.1 The Fire Service will maintain sufficient human and physical resources to be able to

respond effectively to the range of fires and other emergencies specified in the Purchase

Agreement (under output 2.3), 24 hours of the day, every day of the year.

Achieved

2.1.2 Resources will be operationally ready as specified by internal standards and as judged

by operational audit sampling.

100%

2.1.3 Buildings and other facilities, in which pre-knowledge of the fire risk will improve outcomes

in the event of fire or hazardous substance emergency, are to be identified.

Achieved

2.1.4 Current emergency, tactical and risk plans shall be in force, for buildings and other facilities

identified under output 2.1.3 in order to maximise the effectiveness of Fire Service

intervention. Additionally any breaches of law will be identified - including reporting

breaches of the Building Act 1991 to the Territorial Authority pursuant to section 29(5)

of the Fire Service Act 1975.

Achieved

2.1.5 Prepare plans to provide contingent capability to assist at civil emergencies. Achieved

2.1.6 An estimated 50 exercises will be carried out with other emergency management service

providers and agencies in management of community scale incidents.

61

2.1.7 Develop a planning process, by 30 November 1998, to update the code of practice for

water supply, as specified in section 30(2) and 30(3) of the Fire Service Act 1975. The

process will include strategies to encourage Territorial Authorities to adopt the code of

practice as internal performance measures.

Achieved

2.1.8 Review and update the code of practice for water supply to ensure it is in place by Not

30 June 1999. Achieved

2.1.9 Monitor the number and percentage of Territorial Authorities that comply with the code of Not

practice for water supply (under output 2.1.8). Measurable

Output 2.2 Ensuring buildings have an approved evacuation scheme where required

This output covers actions to promote and enforce compliance with the Fire Service Act

1975 in relation to evacuation schemes.

2.2.1 Compile a register of 100% of buildings requiring an approved evacuation scheme. Not

Achieved

2.2.2 Determine and monitor the status of buildings on the register under output 2.2.1. Not

Financial Statements Year Ended 30 June 1999

The status of the building will include whether the building:

- requires an approved evacuation scheme.

- has an approved scheme in place.

- has an Insurance Council of New Zealand approved sprinkler system installed.

Achieved

2.2.3 To undertake processes to evaluate draft schemes and to enforce the requirement for Not

approval of schemes for 75% of buildings, identified under output 2.2.2, which do not

have an approved and adequate evacuation scheme.

Achieved

2.2.4 98% of approved evacuation schemes and waiver approvals will meet the required Not

standards, as verified by internal audit. Achieved

2.2.5 The Fire Service will monitor the conduct and quality of trial evacuations including

attendance at a statistically significant sample of trial evacuations.

4,627

2.2.6 85% of all trial evacuations attended will be completed in accordance with the

approved evacuation scheme.

92%

Output 2.3 Responding to incidents

This output encompasses:

- The services provided by the Fire Service, over and above being operationally ready, to

suppress and extinguish fires and to ensure the safety of people and property endangered

by fire.

- Stabilising, containing and minimising the impact of emergencies involving hazardous

substances.

- Attendance at incidents involving motor vehicles, for suppressing fire, and for extricating

people from motor vehicles, or otherwise assisting them, and assisting to stabilise and

render safe the accident location.

- Work carried out to protect life and property through extrications, rescues and other

special services.

- Emergency medical services provided by the Fire Service.

2.3.1 An estimated range of 16,500 to 18,500 fires (excluding motor vehicle fires) will be

suppressed in urban areas.

14,899

2.3.2 Monitor responses under 2.3.1 for performance against the National Commander’s Not

Emergency Response Guidelines approved by the Fire Service Commission. Achieved

2.3.3 An estimated range of 3,000 to 4,500 fires will be suppressed in rural areas. 3,564

2.3.4 An estimated range of 3,000 to 4,500 motor vehicle fires will be suppressed. 3,604

2.3.5 An estimated range of 1,800 to 2,300 hazardous substance emergencies will be

dealt with.

2,636

2.3.6 An estimated range of 10,000 to 12,500 other incidents will be attended. 15,204

2.3.7 Assistance will be provided for an estimated 2 to 5 declared civil defence

emergencies.

9

2.3.8 The Fire Service will monitor that appropriate resources for declared Civil Defence

emergencies will be mobilised within two hours.

Achieved

2.3.9 Obligations under the agreed plan will be fulfilled, as shown through post-emergency

audits.

Achieved

Output 2.4 Responding to false alarms

This output covers attendance at incidents, which turn out to be false alarms, and

determining that there is no danger from fire or other hazards.

2.4.1 An estimated range of 20,500 to 22,500 incidents that turn out to be false alarms will

be attended.

24,713

2.4.2 Monitor responses under output 2.4.1 for performance against the National Not

Commander’s Emergency Response Guidelines approved by the Fire Service Commission. Achieved

51


52

Class 3 National Rural Fire Authority co-ordination

This output class covers all aspects of co-ordination of the National Rural Fire Authority. The

National Rural Fire Authority has the statutory responsibility for oversight and co-ordination

of Rural Fire Authorities.

Output 3.1 Rural fire standards and co-ordination

This output comprises the services provided to increase the preparedness of Rural Fire

Authorities including the national co-ordination of matters relating to rural fire control, and

the maintenance and application of the Rural Fire Management Code of Practice.

3.1.1 Operational audits of 19 of the109 Rural Fire Authorities and an estimated 16 re-audits

will be completed by year-end.

18 and 16

3.1.2 Operational audits will be carried out in accordance with the Rural Fire Management

Code of Practice.

Achieved

3.1.3 Rural Fire Authorities will receive written reports on operational audits and re-audits

within two months of audit completion.

Achieved

3.1.4 95% of audits and re-audits will be accepted by Rural Fire Authorities without recourse

to mediation.

100%

3.1.5 Administrative support will be provided for 17 Regional Rural Fire Committees in accordance

with legislation.

Achieved

3.1.6 At least 95% of members of Rural Fire Committees will indicate satisfaction with administrative

support and meeting facilitation as determined by independent survey.

84%

Output 3.2 Rural fire advice and support

This output covers providing advice and assistance to Rural Fire Authorities in order to carry

out their role. The output includes providing written advice and interpretations of legal

requirements of Rural Fire Authorities. This output also includes the provision of accurate fire

weather information designed to warn the general public of the extent and intensity of fire

danger in rural areas, during the fire season period, 1 October to 30 April. This output

includes training and education of persons engaged in rural fire management in the

prevention and suppression of fires.

3.2.1 Co-ordinate an education and promotion campaign during the fire season, in partnership

with rural stakeholders, to raise public awareness of the hazards associated with fire in

forest and rural areas.

Achieved

3.2.2 Fire weather information will be available to all Rural Fire Authorities on a daily basis

during the fire season and at least monthly at other times.

Achieved

3.2.3 Fire weather information will be updated daily by 3 pm on 95% of days during the fire

season.

99%

3.2.4 An estimated 90 fire danger notifications will be issued to the news media during the fire

season.

30

3.2.5 Advice will be transmitted to relevant news media by 3 pm on 95% of the days when

fire danger is very high or extreme.

100%

3.2.6 An estimated 230 people will be trained using the rural fire tutorial packages. 210

3.2.7 95% of trainees in rural fire will meet the knowledge requirements of the New Zealand

Qualifications Authority unit standards.

100%

Output 3.3 Grant administration

This output covers administration of the Grant Assistance Scheme (to provide for Rural Fire

Authorities operational readiness) and the Rural Fire Fighting Fund (which reimburses some

costs of attending incidents).

3.3.1 An estimated 40 Rural Fire Authority applications for grant assistance will be actioned

during the year.

58

3.3.2 Rural Fire Authorities will be advised of the results of their grant applications within two

months of the application cut-off date.

Achieved

3.3.3 All approvals for grant assistance applications will be in accordance with Rural Fire

Management Code of Practice requirements and Fire Service Commission policy as

verified by internal audit.

Achieved

Financial Statements Year Ended 30 June 1999

3.3.4 An estimated 100 claims under the Rural Fire Fighting Fund will be actioned during the

year.

127

3.3.5 90% of Rural Fire Authorities will be advised of the results of their applications

within two months of their applications being lodged with the National Rural Fire Authority.

96%

3.3.6 95% of claim decisions will be accepted without recourse to mediation. 99%

Class 4 Policy advice to the Fire Service Commission and Ministerial servicing

This output class covers policy advice on matters relating to fire safety and the management

of fire, hazardous substances and other non-fire emergencies, and support services for the

Minister.

Output 4.1 Policy advice and Ministerial servicing

This output class covers policy advice given to the Fire Service Commission, the Minister,

Government and Government agencies on matters relating to fire safety and the

management of fire, hazardous substances and non-fire emergencies. This output also

covers services for the Minister, including the supply of information to enable the

Department of Internal Affairs to prepare responses to Ministerial correspondence and to

Parliamentary Questions.

4.1.1 The Chief Executive’s Office and the Chief Executive’s Operating Committee will provide

policy advice reports to the Fire Service Commission, the Minister and Government

agencies as required.

19

4.1.2 An estimated 20 reports will be made to the Fire Service Commission in relation to

part 2 and part 3 of the Fire Service Act 1975, the Forest and Rural Fires Act 1977

and the Building Act 1991.

35

4.1.3 An estimated 50 reports will be made to the Government and Government agencies

in relation to standards, regulations, codes of practice, and recommended practices.

15

4.1.4 For performance measures 4.1.1 to 4.1.3, reports and policy advice from the Chief Not

Executive’s Office and the Chief Executive’s Operating Committee will be completed

within an agreed or specified timeframe and to the quality standards as assessed by the

Fire Service Commission.

Achieved

4.1.5 An estimated 40 items of information will be supplied to the Department of Internal Affairs,

to enable the Department to draft responses to Ministerial correspondence.

33

4.1.6 An estimated 350 items of information will be supplied to the Department of

Internal Affairs, to enable the Department to draft responses to Parliamentary Questions.

357

4.1.7 Other items of information will be supplied to the Fire Service Commission and the

Minister as required.

42

4.1.8 For Performance Measures 4.1.5 to 4.1.7, at least 95% of material will be provided

within the agreed or specified timeframes.

85%

Class 5 Levy collection and audit

This output class covers all aspects involved with collection of Fire Service levy including

issuance of rulings and the monitoring and auditing of levy payments and organisations to

ensure compliance with the Fire Service Act 1975.

Output 5.1 Levy collection and audit

5.1.1 15-20 levy audits will be completed by 30 June 1999. 18

5.1.2 The levy audits will meet the relevant audit standards. Achieved

5.1.3 The Fire Service will monitor levy payments to ensure compliance with the Fire Service

Act 1975.

Achieved

Class 6 Funding Fire Service Commission governance

This output class covers the cost to the Chief Executive of funding the Fire Service

Commission’s governance role (including the Office of the Commission) in accordance

with the directive of the Fire Service Commission.

Output 6.1 Funding Fire Service Commission governance

6.1.1 The Fire Service will ensure the funding is provided and accounted for. Achieved

53


Organisation

Structure

The following summarises the structure of the New Zealand Fire Service Commission:

• The Minister responsible for the New Zealand Fire Service Commission is the Minister of Internal Affairs.

• The New Zealand Fire Service Commission is a Crown entity constituted under section 4 of the Fire Service Act 1975

and is a Crown entity for the purposes of the Public Finance Act 1989.

• The New Zealand Fire Service Commission is also deemed to be the National Rural Fire Authority for the purposes

of the Forest and Rural Fires Act 1977 and by section 14A of the Fire Service Act 1975.

• The New Zealand Fire Service is a service constituted under section 3 of the Fire Service Act 1975 and is under the

control of the New Zealand Fire Service Commission.

NEW ZEALAND FIRE SERVICE COMMISSION

Chairperson Dame Margaret Bazley DNZM

Deputy Chair Mr Brian Stanley QFSM, EM, MNZFBI

Minister of

Members Mr Neville Young LLB

Dr Roger Blakeley, Secretary for Internal Affairs, BE (Hons), MSc, PhD, FIPENZ

National Rural Fire

Officer

Murray Dudfield

Chief Financial Officer

Brett Warwick

Manager Strategic

Information Technology

Alan Thompson

Chief Executive (Acting)

Alison Timms

National Commander

Ken Harper

Northland Fire Region

Manager

Bill Butzbach

Auckland Fire Region

Manager

Paul McGill

Internal Affairs

54 55

Manager Strategic

Bay-Waikato Fire Region

Human Resources

Manager

The New Zealand

Fire Service Commission

Vincent Arbuckle

Jim Stephens

Manager Strategic

Western Fire Region

Business Development

Manager

The New Zealand

Kevin Stacey

Sandy Lobban

Fire Service

Manager Audit

Eastern Fire Region

Manager

Irene Corpuz

Allen Procter

Manager Strategic

Communications

Debbie Barber

Manager National

Service Centre

Brett Dooley

Manager

Communications Centres

Steve Turek

Arapawa Fire Region

Manager

Rod Nightingale

Transalpine Fire Region

Manager

Brian Joyce

Acting Southern Fire

Region Manager

Stu Rooney


56

Directory

CORPORATE

OFFICE & COMMAND

HEADQUARTERS

5th Floor, Ministry of

Commerce Building

33 Bowen Street

PO Box 2133

WELLINGTON

TEL 04 496 3600

FAX 04 478 1603

Northland Fire Region

5 Mansfield Terrace

WHANGAREI

TEL 09 438 9199

FAX 09 437 7058

Auckland Fire Region

2 Poynton Terrace

Pitt Street, Newton

PO Box 68-444

AUCKLAND

TEL 09 307 7821

FAX 09 302 5130

Bay-Waikato Fire Region

Upper Floor

Cnr. 7th Ave and

Cameron Road

PO Box 341

TAURANGA

TEL 07 578 7098

FAX 07 578 7484

Eastern Fire Region

Unit 2, 6 Taradale Road

PO Box 4122

NAPIER

TEL 06 835 2114

FAX 06 835 2117

Western Fire Region

165 Fairs Road

PO Box 148

PALMERSTON NORTH

TEL 06 356 5222

FAX 06 356 1192

Arapawa Fire Region

12th Floor, Cigna House

40 Mercer Street

PO Box 9346

WELLINGTON

TEL 04 383 9100

FAX 04 383 8216

Transalpine Fire Region

91 Chester Street East

PO Box 13-747

Armagh

CHRISTCHURCH

TEL 03 371 3600

FAX 03 371 3638

Southern Fire Region

85 Castle Street

PO Box 341

DUNEDIN

TEL 03 474 0709

FAX 03 477 1143

Manager Rural Fire Auckland

PO Box 68-444

Newton

AUCKLAND

TEL 09 302 5172

FAX 09 309 3064

Manager Rural Fire Napier

PO Box 4122

NAPIER

TEL 06 835 2114

FAX 06 835 2117

Manager Rural Fire Palmerston

North

PO Box 148

PALMERSTON NORTH

TEL 06 356 5222

FAX 06 356 1192

Manager Rural Fire Christchurch

PO Box 13-747

Armagh

CHRISTCHURCH

TEL 03 371 3621

FAX 03 371 3638

Manager Rural Fire Dunedin

PO Box 341

DUNEDIN

TEL 03 467 7562

FAX 03 477 1143

New Zealand Fire Service

Fire Regions

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