Doubts cast over insulation rebate

Householders holding out for a new $1000 rebate on roof insulation may have their
hopes dashed as the federal government lurches towards another crisis.
The government axed its old, failed insulation rebate in February and promised to
start a new one on June 1.
But industry figures say the new rebate is not ready and will be delayed until
August - or canned.
Any more problems would be politically dangerous for the government after its old
insulation scheme contributed to four deaths, 120 house fires, and safety and
quality problems potentially affecting hundreds of thousands of homes.
Anthony Tannous, general manager of manufacturer Bradford Insulation, said the
industry was shedding jobs because people were waiting for the new rebate to buy
insulation.
"Many within the industry are hearing that the scheme could be delayed, possibly by
a few months ... We need a decision either way," he told AAP on Thursday.
"We've been quite frustrated and annoyed."
One Bradford plant had lost 35 workers. Many had been working there for 15 or 20 years.
A spokesman for Greg Combet, the minister charged with fixing the insulation mess,
pointed to a statement which said the government "intended" to start the rebate on
June 1.
But the statement said the government would take as much time as needed to ensure
the lessons from the old scheme were learnt in designing the new one.
Mr Combet on Thursday was relieved of his role as minister for defence personnel to
give him more time to work on insulation.
The minister on Thursday released a four-page statement on the insulation scheme
which barely mentioned the new rebate.
It said shonky operators would be banned from undertaking the mass inspections
ordered on some of the 1.1 million homes kitted out with insulation.
Some 150,000 homes fitted with pink batts will be checked. Inspections will be free,
as will "simple remediation work".
The government will hire a national organisation to be in charge, which will
contract companies to do the work. Mr Combet promised only companies who had done
good work under the old scheme would be allowed.
Some 50,000 homes with foil insulation will get free checks in a six-month blitz due
to start soon.
Any household which had faulty foil insulation fitted, and had had it removed, could
try again under the new rebate scheme, Mr Combet pledged.
The minister also announced that installers left with unused insulation would have
their GST deferred, and $15 million would be put towards helping reputable firms
cover costs.
The botched $2.45 billion insulation scheme was supposed to boost the economy and jobs.
Mr Combet looked on the bright side, pointing out that the mass safety inspections
would also boost jobs.
"This will entail a significant amount of work over a period of some months," he said.
The opposition's environment spokesman, Greg Hunt, criticised Mr Combet's
announcement, saying all homes fitted with insulation under the scheme should be
inspected.