Long-standing home insulation businesses pay a very steep price for the Rudd/Gillard government failed Pink Batts program

Many long established home insulation businesses have been disastrously impacted by the Rudd/Gillard government’s incompetent administration of the failed Home Insulation Program (HIP), and I call on the responsible Minister, Greg Combet, to give careful consideration to the claims lodged by those legitimate businesses, Member for Bradfield, Paul Fletcher MP, said today during a speech in Parliament.

‘Such negative consequences have been felt by many businesses, including the Demand Group in my electorate of Bradfield,’ said Mr Fletcher.

‘When the Rudd Government announced the Home Insulation Program in February 2009 the Demand Group invested heavily in anticipation of the program.  But soon things started to go very wrong,’ Mr Fletcher told Parliament. 

‘The Demand Group noticed the watering down of the skill requirements of the installers; delays in auditing; and the reduction in rebate amounts which in turn led to inferior products.’

Mr Fletcher said Mr Mill had told him he faced administrative failure when the Government failed to register the insulation products his company used as approved products – and his applications for competency and compliance were rejected based on erroneous information.

Mr Fletcher informed Parliament that Mr Mill had said: ‘Our experience in dealing with this Program through this government has been disastrous for us financially and has depleted our business to a third the size and is therefore not viable.’

‘The Demand Group, together with similar businesses, made a legal claim for compensation against the Commonwealth.  When they met the government’s lawyers, they were told that Commonwealth was not liable,’ Mr Fletcher told Parliament.

‘Government lawyers suggested that the group consider making a claim under the Scheme for Compensation for Detriment caused by Defective Administration (the CDDA Scheme). Mr Mill therefore made an application to the Minister for Climate Change and Energy Efficiency.

‘After four different inquiries and investigations that have taken place into the failed HIP, it is clear there was defective administration in the operation of the scheme – suggesting the threshold requirement for the application of the CDDA scheme has been met.

‘Long established businesses in the insulation sector, such as the Demand Group, have paid a very high price for the Rudd/Gillard government’s incompetent administration of the HIP.

‘I call on the Minister for Climate Change and Energy Efficiency to give careful consideration, in good faith, to the claims lodged by the Demand Group and other affected insulation businesses,’ said Mr Fletcher.

Media Contact – Georgia-Kate Schubert 02 9465 3950 or 0414 210216