Govt delayed loans axing `to buy votes`

The federal government delayed axing its Green Loans program and proposed Green
Start successor scheme until after the election to buy votes, the opposition says.
Labor was to give 360,000 households access to interest-free loans of up to $10,000
to install environmental-friendly appliances such as solar panels and insulation
under Green Loans.
But the government in July moved to replace that program with Green Start, following
an Australian National Audit Office investigation that strongly criticised its
administration.
Climate Change Minister Greg Combet on Tuesday said data collection for Green Loans
had been deficient and that meant Labor could not have confidence in the Green Start
program.
"There are risks with the data that we cannot satisfactorily mitigate and for that
reason, amongst some other issues, the government has determined not to proceed with
Green Start," he told reporters in Canberra.
"We do not intend to proceed with the Green Start program round one or round two and
the Green Loans program will be extended to February 28 next year and be terminated
at that time."
Green Loans assessors now out of a job will share in $30 million worth of compensation.
Half of that will go towards assisting accredited assessors develop their
professional skills and credentials. Money will cover 50 per cent of tuition fees up
to $2500 per assessor.
The other $15 million will help accredited but not contracted assessors with
compensation for some of the financial costs incurred in gaining qualification.
That will provide funds of up to $3000 per person.
Opposition climate action spokesman Greg Hunt said the news once again proved Labor
could not manage the environment portfolio.
"All of the program's flaws - suddenly discovered now - were known at the time of
the election," he said in a statement.
"The only reason the government took this latest example of failure to the election
was to try and buy the support of almost 10,000 assessors who were the victims of
the earlier Green Loans program."
Mr Hunt also called for assessors to be compensated sooner.
"(Prime Minister) Julia Gillard should also explain why some assessors could be
forced to wait another whole year for compensation under today's announcement," he
said.
"It is unconscionable that they are being further penalised by such a delay."
Mr Combet admitted Green Loans had experienced problems that were exposed in a
number of reviews and audits.
The government would be saving $212 million by axing Green Start, less $30 million
for the compensation program.
Mr Combet defended the $120 million spent on the Green Loans scheme, saying it had
achieved significant positives.
The Australian Greens said it would have been a waste of money to continue the badly
designed and implemented scheme.
"We now need a national energy efficiency target," deputy leader Christine Milne
told reporters.
"It needs to be a market-based mechanism because the department of the environment
has shown more than capably why the government shouldn't be running these programs."
Association of Building Sustainability Assessors chief executive Alison Carmichael
said the government's announcement was a mixed blessing for her industry.
"The scrapping of Green Start will be very hard for many of our members," she said.
"But we could absolutely not support the implementation of another systematically
flawed energy efficiency program."
Ms Carmichael said Labor's assistance package would go "some way" to looking after
assessors affected by the Green Loans saga.