Insulation industry welcomes shock rebate cut

The Federal Government’s snap decision to cut its insulation rebate from $1,600 to $1,200 will clean up the sector and make it harder for dishonest traders to continue working, an industry veteran says.

The praise comes as the Government announced yesterday dishonest traders would be named-and-shamed in a register to be created in the coming week.

Peter Gerster, owner and manager of insulation company Golden Fleece, says the industry will improve as a result of the cut, which will see dodgy traders cease working.

“I think it’s a good thing for the whole industry, because this gets rid of people who were up to no good and ripping the system off. Because the rebate is now $1,200 they’ll have to ask customers for the extra few hundred, and some won’t be able to do that.”

While Gerster admits his company will see a drop-off in business, he maintains it will be better off in the long run.

“After 1 December people will have to get two quotes to claim the rebate, which will be an improvement. We won’t get as much work, as people have said they can’t afford the extra few hundred… but we’ve been operating for 50 years and will still operate. This is a fantastic thing that the Government is doing.”

Environment minister Peter Garret announced the cut to the rebate yesterday, also saying a register would be created to help individuals avoid companies using illegal methods.

”The time is now right for us to make sensible changes to take pressure off the market while ensuring this hugely popular program still offers generous incentives for households,” he said.

The rebate has come under fire from the Opposition, as many companies have entered the insulation businesses without adhering to safety standards in order to take advantage of the increased activity in the market. Allegations have surfaced that low-quality insulation has caused significant damage, including house fires.

But Garret also announced new safety standards and guidelines yesterday, banning the use of certain metal fasteners and an inspection program in Queensland, where the majority of complaints have risen.

“There’s no room in this program for businesses that aren’t willing to stand publicly by the quality of their work, so from December 1 all installers on our register must do just that,” he said, adding any businesses not included on the register will be named.

But Opposition environment spokesman Greg Hunt said the Government’s decision is an admission of failure.

”It has cut the home insulation rebate by $400 because it knew the program has pushed up the price of an average insulation job by at least that much. Multiply that $400 by the 500,000 rebates already paid and that’s a waste in the order of $200 million,” Hunt said.