Sandra Mcllroy of Simplicity Bereavement Services in Hastings said the funeral service industry desperately needs regulation to control inflated prices. Photo / Warren Buckland
Sandra Mcllroy of Simplicity Bereavement Services in Hastings said the funeral service industry desperately needs regulation to control inflated prices. Photo / Warren Buckland
A Hawke's Bay funeral director says the cost of dying desperately needs to be re-evaluated.
The Funeral Directors Association of New Zealand (FDANZ) are calling for the Government to increase the Funeral Grant and its accessibility for low income families as funerals become more expensive.
However, Sandra Mcllroy of SimplicityBereavement Services in Hastings said what should be examined instead is the cost of funerals.
"We believe funerals cost more than they should and it seems like the Government has to meet the industry at their costings which I don't believe is fair."
"It's really about pricing and a regulator would make pricing fairer across the board for the public."
The Funeral Grant is asset and income-tested monetary assistance for the funeral costs of someone who has died with a maximum payable amount of $2280.72.
Mcllroy said FDANZ's proposal of a $6300 funeral grant was "excessive" and would drive prices higher. Photo / Warren Buckland
Excluding CPI adjustments, the grant has not been increased in nearly 20 years.
FDANZ chief executive Gillian Boyes said the current maximum grant is woefully inadequate.
"Our members often see families choose a cremation when a burial might be more appropriate for cultural or religious reasons," she said.
She said the grant only covers 37 per cent of simple cremations ($6203) and 29 cent ($7906) of simple burials.
Based on these figures FDANZ proposes increasing the funeral grant to $6300, in line with ACC funeral provisions for those who die of injury ($6569.53).
"This would cover up to 80 per cent of a simple funeral with a burial, giving vulnerable communities and those who may prefer burial for religious and cultural reasons a choice of how they farewell their loved ones," Boyes said.
However, Mcllroy said $6300 was "excessive" and based on inflated funeral costs.
"For us, we do a full funeral for $5000, inclusive of GST, still high-quality funeral services."
She said funeral prices would only be driven up if the grant was increased to that degree.
"We believe that pre-planning and education is the way around it, it is the path that we all have to cross at some stage in our lives."
She said regulation and more transparency would help achieve more affordable funeral pricing for consumers too.
"Because we are unregulated and we are not accountable to anyone we can charge whatever we want."
"You could start a funeral home tomorrow, if you were having a mortuary you'd have to get that signed off from the council, but other than that you are good to go"
Funeral director and manager of Beth Shan Funerals in Napier Bruce Finlayson said he did not see any problem with the Funeral Grant as it is.
"I don't think it is as big a deal as the Funeral Directors Association is saying. It does its job, it serves its purpose."
He did acknowledge funerals had gotten dearer faster than the grant increased, but he said the offer was still "generous".
Katherine Dunstall of Dunstall's Funeral Services, pictured right, agrees with FDANZ and said her business sometimes had to do things at cost to help families grieve better. Photo / Paul Taylor
Katherine Dunstall of Dunstall's Funeral Services agreed with FDANZ's stance and said the Funeral Grant has been inadequate for all 10 years she has worked as a funeral director.
"It doesn't cover the cost of a basic service for anybody."
She said it had gotten to the point where the business sometimes had to do things at cost to help families grieve better.
"I think families aren't getting the opportunity to give their loved one a meaningful farewell, and I think it is reflecting back on their mental health."
An FDANZ statement said the fiscal impact of their proposal would be limited to $14.1 million per annum since the grant is an asset tested hardship fund.
Currently, about 4500 people receive the grant per year and from 2000 to 2014 the total grant value has averaged $8.6m per year.
"Compared to the other asks and investments that will be made during this year's Budget, we don't think this is asking for much for some of society's most vulnerable. There are also downstream savings – we know not being able to farewell someone can contribute to poorer mental health outcomes, which might later be a cost to Government," Boyes said.
