Over 400,000 homes with dodgy insulation, inquiry hears

Over 400,000 houses have been installed with insulation made up of cheap imported goods which could be a massive safety risk, a Senate inquiry into the Government’s $2.4 billion insulation program has heard.

Several Coalition MPs used the opportunity to call for the resignation of environment minister Peter Garrett, who has been blamed for the problems associated with the rebate.

The inquiry comes as industry experts have welcomed action against the Government’s botched program, which has seen dodgy traders use unsafe and cheap imported materials in order to take advantage of the payments.

The inquiry, which took place in Melbourne, heard between 30-40% of the one million homes with insulation used in the program so far did not comply with safety values which measure resistance to heat and performance.

Experts have said it is the heat issue which is of the most concern, as homes have been damaged by fires due to insulation being installed without protection from certain types of light fittings.

Additionally, four people have died due to alleged problems with cheap insulation products. Last week SmartCompany revealed photographs of a house in Melbourne which had burned down due to a botched insulation job.

Tino Zuzul, who represented the Polyester Insulation Manufactures Association of Australia, said the imported products used by dodgy traders were likely failing to meet safety standards.

“There has been a gross waste of taxpayers’ money… there’s no benefit to 30-40% of homes,” he said at the inquiry.

It is understood Garrett was told of these concerns by the industry in January, but the Government said it would be up to individual home owners to make sure the products used in their homes were safe.

Other representatives, including the president of the Aluminium Foil Insulation Association, Brian Tikey, said the Government should immediately halt the $1,200 rebate program. He argued the rebate had seen a “free for all” with untrained installers.

Garrett banned the use of foil insulation just weeks ago after it was discovered the products were involved with homes suffering fire damage.

Jim Liaskos from the Polyester Insulation Manufacturers Association said the program was helping the industry, but the Government should have consulted with professionals before unleashing the rebate.

“I think if you come to a program with no knowledge of the industry or how it works you’re bound to fall flat on your face,” he said.

“There should have been the benefit of the experience of the people who have been in the industry for a long period of time, and they should have been asked for their views.”
But despite the problems with the rebate, experts have said removing it from the market early will see too many jobs lost. The chief executive of the Insulation Council of Australia and New Zealand, Dennis D’Arcy, said the Government should not remove the rebate so quickly.

“Any early reduction on this program would have a massive impact on this industry,” he said. ICANZ director Ray Thompson also argued imports from China make up less than 10% of the entire rebate program, with only 2-3% of companies non-compliant with safety standards.

But industry veterans say action must be taken. Peter Gerster, who owns and operates Melbourne insulation business Golden Fleece, says a massive inspection campaign must begin.

“Action needs to be taken urgently. There are 400,000 homes that have had insulation incorrectly installed, and the Government needs to have a plan of attack. People are going to be sick from dodgy insulation, I’ve heard of some installers vomiting in roofs and so on. Action needs to be taken.”

Shaun Cochrane, managing director of All Safe Energy, says action needs to be taken against unscrupulous traders, and not necessarily the Government.

“The problems come from people just trying to capitalise on the rebates who are doing dodgy installations of foil and so on.”

“I don’t know if Garrett is to blame, I suppose people would throw fingers everywhere. But I think it is the inexperienced people getting into a trade very quickly, and having installers who aren’t trained in what they are doing.”