Exclusion of insulation – very disappointing
23/Apr/2010
The Insulation Council of Australia and New Zealand (ICANZ) has today expressed disappointment that the Federal Government has abandoned its plans to offer householders an insulation rebate of $1000 as part of the Renewable Energy Bonus Scheme (REBS), but supports the decision by Government to ensure the safety for the homes insulated under the scheme.
ICANZ CEO Dennis D’Arcy said, “It is unfortunate that fraudulent behaviour of new entrants into the insulation industry has denied Australians the benefits of insulation in a climate of rising energy costs.
“For over 50 years, ICANZ members have lead the industry in supplying quality insulation products and supporting experienced installer networks across Australia.
“A managed government program for installing effective and safe insulation is well within the capabilities of reputable established members of our industry.”
Following the recent release of audit findings for the closed Home Insulation Program (HIP), ICANZ advocated for an orderly restoration under REBS. This included using licensed, experienced and reputable bulk insulation installers. It also recommended a measured program roll-out, accompanied by high levels of monitoring and auditing.
Another important component of the proposal was to ensure that only the right insulation, independently tested was used.
Mr D’Arcy said, “The Government’s planned rectification program is of the highest priority. It will address consumer concerns and ensure that compliance and risks to householders are eliminated in homes where the quality of installation may be questionable. In order to achieve this, the rectification program must have experienced personnel and strong procedures.”
ICANZ represents the two largest and most experienced insulation manufacturers in Australia, Bradford Insulation and Fletcher Insulation. The sudden closure of the HIP has created enormous hardship for long established and reputable businesses in the industry.
“We acknowledge the Government’s assistance package to help offset some short-term costs however there are still significant challenges in re-establishing the credibility of reputable and long-standing companies,” Mr D’Arcy said.
This announcement also comes as energy prices in all States continue to rise sharply, impacting all householders, particularly those with low incomes.
“Australia has a high number of homes still without adequate insulation. Any effective Government policy on energy use and climate change will need to address this issue.”
“ICANZ will be working with both State and Federal governments to help eliminate fraudulent operators from the industry and restore confidence with Australian homeowners about the safety and effectiveness of quality, Australian made mineral wool insulation batts,” Mr D’Arcy said.
Media Information: GRS Communication 0439 320 151