Wednesday 28 April 2010

Insulation sector shake-up

Summaries - Australian Financial Review
Friday 23/4/2010 Page: 11

The Federal Government is looking to introduce greater regulation of the home insulation industry in a move to restore consumer confidence, after a review of its retro-fitting program showed long-standing problems in the industry and an inadequate regulatory framework. Energy Efficiency Minister Greg Combet announced on Thursday that the government had shelved its pledge to restart the home insulation program (HIP) after the author of the report, Allan Hawke, indicated he held "grave concerns about the wisdom" of proceeding with it.

Dr Hawke's review revealed it was difficult to predict the high level of unscrupulous behaviour that took place and that Environment Minister Peter Garrett had responded in a timely manner when issues arose. Dr Hawke has recommended a new and nationally consistent regime for the industry based on a South Australian licensing system. Fletcher Building announced on Thursday it would close a production line at its Dandenong plant with the loss of 68 jobs, adding to the 52 jobs lost at its Sydney plant earlier this year. The February decision to stop the program has resulted in job losses and stockpiling of products by installers. Mr Combet said about 200,000 homes will be inspected, based on a risk profile of those most likely to need work, while 8% of homes were found to be noncompliant.

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