Paul Fletcher (Bradfield, Liberal Party) Share this | Link to this | Hansard source

I rise to speak of the impact of the government's failed Home Insulation Program on my constituent Mr Doug Mill and his long-established home insulation business, the Demand Group, in my electorate.

When the Rudd government announced the Home Insulation Program in February 2009, the Demand Group invested heavily in anticipation of the program—indeed, they felt there was little option. But things started to go very wrong. The problems Doug Mill observed included watering down the skill requirements of installers, the delay in auditing and the reduction in the rebate amounts, which, in turn, led to inferior products. The program began to unravel and was closed in February 2010.

It was in the latter stages of the program, and in the mop-up schemes after the program was cancelled, where, in the words of Mr Mill, the 'fun' really started for him and his business as they sought to comply with the new requirements that were imposed. For example, Mr Mill says he faced administrative failure when the government failed to register the insulation products his company used as approved products. Additionally, Mr Mill says, his applications for competency and compliance were rejected based on erroneous information.

Mr Mill has commented:

Our experience with 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 not therefore viable. By completing 1.1 million homes it has taken about 15 years of work away. By overlooking us for Home Insulation Safety Program it has excluded us from millions of dollars of Inspection and rectification work and by allowing untrained people to install it has taken work away from legitimate businesses like ours …

The Demand Group, together with similar businesses, has made a legal claim for compensation against the Commonwealth. When these businesses met the Commonwealth lawyers they were told that the Commonwealth was not liable. But the government lawyers suggested they 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 Home Insulation Program, it is clear that there was defective administration in the operation of the scheme, suggesting that the threshold requirement for the application of the CDDA scheme has been met.

Long-established businesses in the insulation sector, such as but certainly not limited to the Demand Group, have paid a very high price for the Rudd government's incompetent administration of the Home Insulation Program. 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.