Australia Scraps Insulation Component Of Renewable Energy Bonus Scheme
Following advice received from Dr Allan Hawke in his Review of the Administration of the Home Insulation Program, the Government has decided it will not proceed with the insulation component of the Renewable Energy Bonus Scheme (REBS).
The insulation component of the REBS was due to commence on 1 June 2010. The Solar Hot Water Rebate component will proceed as previously announced.
The Government’s primary focus is on safety in the Home Insulation Program wind-up. The Government priority moving forward is the safety inspection programs for the Home Insulation Program.
The Hawke Review of the Administration of the Home Insulation Program
The report by Dr Allan Hawke into the Home Insulation Program (HIP) was a key determinant in the Government’s decision to not proceed with this component of REBS.
Dr Hawke has advised the Government that he has “grave concerns about the wisdom of proceeding with any further government supported home insulation program.”
In his report he notes that “the safety and quality risks cannot be fully abated and both the Government’s efforts and those of reputable industry players will be largely deployed on the Government’s rectification program, which must proceed as soon as possible.”
Dr Hawke further advised in his report that if the Government did take the decision to proceed, significant risk mitigation policies would be required. The implementation of these policies would cause a significant delay to the 1 June start date.
It is because of these concerns about the development of an appropriate risk management framework in regards to safety and compliance issues that the Government has made the decision that REBS will proceed without the insulation component.
Dr Hawke’s report will be tabled in the Parliament today and made available publicly.
Safety for Households
In remediation of the HIP, the Government’s first priority remains the safety of households.
The Government has established the Home Insulation Safety Program (HISP) and the Foil Insulation Safety Program (FISP).
Under the HISP, safety inspections of a minimum of 150,000 homes that had non-foil insulation installed under the HIP will be carried out.
In line with Dr Hawke’s recommendation the HISP will begin as soon as possible, once the Government is satisfied that the appropriate compliance and safety mechanisms are in place.
Under the FISP, the 50,000 homes that had foil insulation installed under the HIP will have the option of having the foil insulation removed, or alternatively on the advice of a licensed electrician, having safety switches installed.
Impact on Industry
The Government also considered the impact that this decision will have on the insulation industry.
The most important form of industry assistance that the Government can provide is to help restore confidence in the home insulation retrofitting segment of the industry.
The HISP will be critical to rebuilding confidence and demand in the industry. It will assist long-standing reputable firms in the industry by allowing them, subject to meeting the criteria, to participate in home inspections.
Prior to the commencement of the Government’s Home Insulation Program approximately 65-70,000 retrofits of home insulation were performed each year. A minimum of 150,000 inspections to be performed over a period of less than a year will entail a significant amount of work for reputable companies in the industry.
The Government’s analysis is that the inspection programs will provide significant scope for business activity and employment for the long standing and reputable members of the insulation industry.
In addition, the Government has already committed $56 million to assist insulation workers and companies affected by the closure of the Home Insulation Program and extended the opportunity for firms to apply for deferral of their GST payments.
It is anticipated that the detailed guidelines for the $15 million Insulation Industry Assistance Package will be released soon. This package will provide financial assistance to eligible insulation firms to help meet the cost of retaining insulation stock that was held at the termination of the Home Insulation Program.
Topics: 2010, Australia, business, clean energy, COAG, Dr Allan Hawke, economic development, economic growth, economic recovery, Economy, employment, Energy Efficiency Mechanism, environment, Governance, government, green, Hawke Review, Home Insulation Program, investment, jobs, moniter, monitor, news, quality, REBS, RECs, renewable energy, Renewable Energy Bonus Scheme, Renewable Energy Certificates, renewable energy generation investment, Renewable Energy Target, renewable projects, safety, solar credits scheme, solar hot water rebate, Solar Photovoltaic Systems, solar water heaters, sustainable energy
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