House debates

Monday, 22 November 2010

Private Members’ Business

Home Insulation Program

7:56 pm

Photo of Stephen JonesStephen Jones (Throsby, Australian Labor Party) Share this | Hansard source

The member for Page has outlined the reasons the government should not release information relating to inspection results at this time. I would like to spend the time that I have focusing on the steps that the government has taken to wind down the program and to deal with the issues in an open and transparent manner. On 10 March this year my colleague the Minister for Climate Change and Energy Efficiency outlined the main priorities for the government in remediating the Home Insulation Program. They included, firstly, to put in place a household inspection program, to identify and address the extent of safety and fire hazard concerns, to mitigate risk and to thereby reassure householders who have had their homes insulated under the program; secondly, to assist industry and employees adjust to the termination of the program; thirdly, to identify and put in place processes to deal with issues of non-compliance and fraud; and, fourthly, to identify any failures of administrative processes within government associated with the design and implementation of the Home Insulation Program.

Over the last seven months the government has made significant progress against these objectives. This was reinforced in the ANAO audit report, which stated:

Substantial work is also currently being undertaken by DCCEE to rectify safety issues and address concerns raised by the many stakeholders involved in the program. In implementing the remediation programs, DCCEE has incorporated many of the lessons from Phase 2—particularly in regard to governance arrangements and bringing in program management experience to meet identified priorities.

Safety remains the government’s main priority, and a comprehensive safety inspection program has been established, in which a minimum of 200,000 homes that had foil and non-foil products installed under the program will be inspected. The government has already completed over 110,000 inspections. However, a lot more difficult work is needed to be done. From the moment the government closed the Home Insulation Program on 19 February, it has been transparent in determining what went wrong and what it is to do to fix the problem. For example, the government has established and supported a number of inquiries into the program, and I will go through each of those.

Firstly, there is the ANAO report. On 3 March 2010 the minister requested that the Auditor-General conduct an audit of the HIP. The terms of reference to this inquiry were determined by the Auditor-General, and they were able to access all relevant material, including cabinet documents. The ANAO report was tabled on 15 October this year.

Secondly, there is the review of the administration of the Home Insulation Program. The review of the administration of the Home Insulation Program was commissioned by the Department of the Prime Minister and Cabinet to examine and report on the effectiveness of the program design, administration and delivery arrangements. It was undertaken by Dr Allan Hawke AO and completed on 6 April this year. The review identified problems in program governance, design and administration, risk management, compliance mechanisms and capacity issues.

Thirdly, there was a Senate inquiry. The Senate Standing Committee on Environment, Communications and the Arts also conducted an inquiry into the program and tabled a report on 15 July.

Fourthly, there were coronial inquiries. Coronial inquiries are still ongoing into the tragic loss of four people that were associated with the Home Insulation Program, and the government has agreed to provide funding for legal representation of the families associated with the coronial hearings.

Fifthly, an insulation advisory panel was established. When Minister Combet assumed responsibility for the program, he was determined to seek the views of industry experts in terms of how the government should proceed with elements of the program. Consequently, he established an insulation advisory panel which included Dr Ron Silberberg, Mr Tony Arnel and Mr Peter Tighe.

Sixthly, there are monthly reports. The government is also producing a monthly public report on the Department of Climate Change and Energy Efficiency website—

A division having been called in the House of Representatives—

Sitting suspended from 8.01 pm to 8.14 pm

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