Energy Efficient Homes Package
Encyclopedia
The Energy Efficient Homes Package was an Australian government program implemented by the Rudd Government
and was administered by the Department of the Environment, Water, Heritage and the Arts. The program consisted of two streams:
and his Department, had the Home Insulation Program removed from their area of responsibilities with Greg Combet
— the then Minister Assisting the Minister for Climate Change and Energy Efficiency — given the role of administering the transition between the Home Insulation Program and the Renewable Energy Bonus Scheme . Penny Wong
was responsible for all other programs, such as, the Green Loans Program, Green Start, Solar Schools, Solar Cities, etc. The Renewable Energy Bonus Scheme is administered by the Department of Climate Change and Energy Efficiency, as of 9 March 2010.
for investigation. The Federal Government, in March 2010, announced a proposal to remove foil insulation or make it safe from 50,000 houses and undertake another 150,000 inspections.
In March 2011, 35 search warrants were taken out in three states targeting alleged fraud. Businesses and individuals were raided in New South Wales, Queensland and Victoria. Climate Change and Energy Efficiency Minister, Greg Combet, says the Government is ensuring taxpayers are not ripped off by a minority that took advantage of the program.
At the program's peak, demand for the program more than doubled original expectations. As problems mounted, the then minister, Peter Garrett, did not have his requests for information answered promptly and then, when it was provided, it was "overly optimistic" and contained factual errors, McPhee said.
. The cost of the Home Insulation program is estimated to have cost around $1 billion dollars and another $1 – $1.5 billion dollars will be needed to rectify the Home Insulation problems.
It was revealed, in May 2010, that Mr Garrett had written to the then Prime Minister, Mr Rudd, on four separate occasions (August, 2009, October, 2009, etc.) raising concerns about safety.
In August 2010, one hundred Green Loans assessors lodged claims for compensation after the Green Loans Scheme was axed in early 2010.
Rudd Government
The Rudd Government refers to the federal Executive Government of Australia of the Australian Labor Party from 2007 to 2010, led by Kevin Rudd as Prime Minister. The Rudd Government commenced on 3 December 2007, when Rudd was sworn in along with his ministry...
and was administered by the Department of the Environment, Water, Heritage and the Arts. The program consisted of two streams:
- Home Insulation Program (HIP)
- Solar Hot Water Rebate Program (SHWRP)
- Other programs, that were closely tied in with the Energy Efficient Homes Package, are the Green Loans Scheme (changed to the Green Loans Program and now known as Green Start program - the Green Start program was scrapped by the Government in December 2010.), Living Greener, National Solar Schools, Rainwater and greywater (administered by Mike KellyMike KellyMike Kelly is a columnist for The Record, a newspaper serving Bergen County, New Jersey. He is also the author of Color Lines: The Troubled Dreams of Racial Harmony in an American Town, a book about the 1990 shooting in Teaneck, New Jersey of Phillip Pannell, an African-American teenager, by Gary...
) and Solar Cities, etc.
Home Insulation Program
The Home Insulation Program was caught up in controversy when the deaths of four workers in separate incidents were linked to the program and electricians warned that poor installation of metallic foil insulation could lead to further deaths or injury through electrocution. In response, the program was discontinued on 19 February 2010 and is replaced, for the interim, by the Insulation Workers' Adjustment Package which provides assistance to support the retention of insulation workers in the insulation industry or related industries until the new Renewable Energy Bonus Scheme commences on 1 June 2010.Minister's responsibilities
On 26 February 2010, the government Minister in charge of the program, Peter GarrettPeter Garrett
Peter Robert Garrett, AM, MP , is an Australian musician, environmentalist, activist and politician.Garrett was lead singer of the Australian rock band Midnight Oil from 1973 until its disbanding in 2002...
and his Department, had the Home Insulation Program removed from their area of responsibilities with Greg Combet
Greg Combet
Gregory Ivan Combet AM MP is an Australian politician and trade unionist. He was Secretary of the Australian Council of Trade Unions between 2000 and 2007...
— the then Minister Assisting the Minister for Climate Change and Energy Efficiency — given the role of administering the transition between the Home Insulation Program and the Renewable Energy Bonus Scheme . Penny Wong
Penny Wong
Penelope "Penny" Ying-yen Wong , is an Australian Labor Party senator for South Australia and the Federal Minister for Finance and Deregulation. Wong was the first Australian Minister for Climate Change and Water. Her appointment was amended on 26 February 2010, by the Prime Minister, to the...
was responsible for all other programs, such as, the Green Loans Program, Green Start, Solar Schools, Solar Cities, etc. The Renewable Energy Bonus Scheme is administered by the Department of Climate Change and Energy Efficiency, as of 9 March 2010.
Fraud
Allegations of fraud under the program were later made, with three cases forwarded to the Australian Federal PoliceAustralian Federal Police
The Australian Federal Police is the federal police agency of the Commonwealth of Australia. Although the AFP was created by the amalgamation in 1979 of three Commonwealth law enforcement agencies, it traces its history from Commonwealth law enforcement agencies dating back to the federation of...
for investigation. The Federal Government, in March 2010, announced a proposal to remove foil insulation or make it safe from 50,000 houses and undertake another 150,000 inspections.
In March 2011, 35 search warrants were taken out in three states targeting alleged fraud. Businesses and individuals were raided in New South Wales, Queensland and Victoria. Climate Change and Energy Efficiency Minister, Greg Combet, says the Government is ensuring taxpayers are not ripped off by a minority that took advantage of the program.
Australian National Audit Office
The Auditor-general, Ian McPhee, identified shortcomings in the way the Department of the Environment, Water, Heritage and the Arts handled the program's implementation as it faced pressure from the Federal Government to get it up and running during the height of the global financial crisis. The report states that the department requested the program be rolled out over five years but that this request was denied because of the desire to stimulate the economy and create jobs. McPhee also reported the department underestimated the level of risk involved in an unregulated industry which was using inexperienced workers to install insulation in ceiling spaces, McPhee stated; "The focus by the department on the stimulus objective overrode risk management practices that should have been expected given the inherent program risks."At the program's peak, demand for the program more than doubled original expectations. As problems mounted, the then minister, Peter Garrett, did not have his requests for information answered promptly and then, when it was provided, it was "overly optimistic" and contained factual errors, McPhee said.
Scheme expiration
On 22 April 2010, the then Minister Assisting the Minister for Climate Change and Energy Efficiency, Greg Combet, announced that the Federal Government was abandoning the scheme that was going to replace the Home Insulation Program. Mr Combet also revealed that about half of the 73,000 rebate claims did not comply with the program rules. The replacement scheme was axed after advice from former Secretary of the Defence Department - Dr Allan HawkeAllan Hawke
Allan Douglas Hawke AC is a former Australian senior public servant and diplomat. He was the Chief of Staff to the former Prime Minister, Paul Keating; Secretary of the Department of Veterans' Affairs 1994–1996; Secretary of the Department of Transport and Regional Services 1996–1999; and...
. The cost of the Home Insulation program is estimated to have cost around $1 billion dollars and another $1 – $1.5 billion dollars will be needed to rectify the Home Insulation problems.
Compensation
The Federal Government announced, in May 2010, that it would give cash handouts of up to $500,000 to insulation companies affected by the axing of the rebate scheme. The then Assistant Climate Change Minister, Greg Combet, said applications had opened for a $15 million compensation fund. The Government said reputable companies would receive a cash payment calculated at 15 per cent of the total value of their stock, assistance will not be provided to companies with foil insulation products.Legal action
On 6 May 2010, the Queensland's Department of Justice and Attorney-General charged Beenleigh company QHI Installations, its director, and its manager under the Electrical Safety Act. On 29 June 2010, Queensland's Justice Department had charged a Rockhampton company after an investigation into the death of a teenage insulation worker in central Queensland last year. Arrow Property Maintenance Pty Ltd has been charged with breaching the Electrical Safety Act and for allegedly failing to run its business safely.It was revealed, in May 2010, that Mr Garrett had written to the then Prime Minister, Mr Rudd, on four separate occasions (August, 2009, October, 2009, etc.) raising concerns about safety.
Audit
On the 23 April 2010, the then Energy Efficiency Minister, Penny Wong, announced an audit, by the Federal Government, of assessors of its Green Loans scheme. Assessors linked with the program will be audited after reports of potentially fraudulent activities and any breaches will be referred to the Australian Federal Police.In August 2010, one hundred Green Loans assessors lodged claims for compensation after the Green Loans Scheme was axed in early 2010.
External links
- Environment Dept - Energy Efficient Homes Package
- Environment Dept - Insulation
- Environment Dept - Solar hot water
- Environment Dept - Green loans
- Environment dept - Sustainability
- Environment dept - Significant changes to Commonwealth environmental programs - Peter Garrett
- http://www.dpmc.gov.au/parliamentary/index.cfm
- http://www.dpmc.gov.au/parliamentary/docs/ministry_list.rtf