Pressure mounts on Peter Garrett as entrepreneur slams “rorting” of Green Loan scheme

Pressure on Federal Environment Minister Peter Garrett is increasing, with the Opposition calling for his resignation and another green entrepreneur declaring the Green Loans scheme has been affected by “greed and rorting”.

The Federal Opposition stepped up its attack in Parliament yesterday after a string of problems emerged with the Green Loans scheme and the Government’s insulation scheme.

Four insulation installers have lost their lives while on the job, while SmartCompany also revealed photographs yesterday of a home in the Melbourne suburb of Vermont which suffered massive fire damage allegedly as a result of a botched insulation job.

Dewayne Montey, managing director of Ecovation Water and Energy, says the Government must review the way it is handling the botched Green Loans initiative.

“Unfortunately the industry has abused what I believe is a good program with the right intentions. The problem is greed and rorting by opportunists and yes, the Government resources have been overloaded and that is not a good excuse.”

“Understandably they have let their guard down for the right reasons, which were to stimulate the industry, create jobs and get the green message out there.”

Several small businesses have criticised the Government about the scheme, which is reportedly suffering under the weight of the companies applying for funding.

The scheme works by allowing accredited companies to assess homes in order to suggest “green” upgrades, such as solar panels and hot water tanks. The assessor then books a job through the Government in order for funding to be received.

However, companies such as Green Home Loans Australia and Alpha Green have said they have waited for hours on the phone while trying to book jobs, with the Government buckling under the weight of so many assessors attempting to confirm funding.

Montey notes the number of assessors the Government flagged has now been capped at 10,000 – well above the expected limit. Additionally, while the Government expected 350,000 of these assessments to be completed by 2013, they are now expected to be finished by April.

“I also blame ABSA who have been happy to take the association fees but may have overlooked advising the Government that the initial quota of 1,300 assessors had been reached a long time back.”

Meanwhile, the Federal Government and environment minister Peter Garrett have come under attack for allowing the insulation rebate scheme to continue despite warnings of regulatory failures and safety concerns.

Opposition leader Tony Abbott called on Prime Minister Kevin Rudd to sack Garrett from his post, saying he had ignored several safety warnings about how untrained installers were using the insulation rebate scheme to gain easy money.

“This is about the death of four young Australians flowing from the maladministration of this portfolio by this incompetent minister,” he said in Parliament.

“We have live houses, houses that are a potential risk to their occupiers because of the ineptitude of this minister, and he thinks none of this is his fault.”

However, Garrett has continued to defend himself. Yesterday he told ABC Radio it was not the Government’s fault the rebate was being abused.

“It’s not the rebate that is causing accidents in people’s roofs,” he said. “It’s negligent or inappropriate, slack behaviour on the part of a very tiny minority.”

The Government originally designed the $1,200 rebate scheme as a method for producing jobs and reducing emissions. But while taxpayers have taken up the rebate, several unscrupulous traders using unsafe and inadequate materials have continued to operate in order to gain some quick cash.

The problem lies in how the insulation is installed with regards to electrical fittings. It is understood “caps” are needed around light fittings to protect electrical cables from flammable insulation material.

But untrained installers are not using these caps, putting many homes at risk. Industry insiders say they have heard of houses burning down due to the botched insulation.

Garrett attempted to rectify the problem earlier this week when he banned the use of foil insulation. However, the problems haven’t disappeared, with the revelation that Garrett continued with the operation of the scheme even after he received safety warnings from regulator.

Montey says the problem lies with unscrupulous providers, who have been given inadequate training.

“The industry has abused what I believe is a good program with the right intentions. It is primarily greedy insulation retailers and marketers who have rorted the program, and brought it into disrepute.”

Rudd has continued to stand by Garrett, saying he will not sack him from his position. But those within the industry say there could be continued reports of houses suffering fire damage, bringing into question how long Garrett can remain.