The provision and funding of fire services affects every household and firm. Most fire services are currently provided collectively on a national basis. They are largely funded by a levy on insurance firms in respect of contracts that provide fire cover. The levy is passed on to households and firms that buy fire insurance.

While direct spending on fire services totalled around $170 million in 1993/94, substantial additional resources would have been allocated to fire prevention and to reducing death, injury and property losses from fires. Because of the size and significance of these activities, it is important for community welfare that individuals and firms are encouraged to make optimal investments in loss prevention and minimisation, insurance and fire services. It is within this broad context that the provision and funding of fire services is reviewed in this report.