The Australian insulation industry has taken a reputation blow today after Federal Environment Minister Peter Garrett announced 100 insulation companies will be kicked out of the Government’s $2.7 billion program because of “unscrupulous behaviour“, including cases of overcharging and fraudulent invoicing.
While Mr. Garrett says the number of operators booted from the program is a minority, opposition environment spokesman Greg Hunt said the 100 companies were the “tip of the iceberg” and called for a full auditor-general’s inquiry into the issue.
Fraud in relation to insulation has been reportedly commonplace since the program began. As early as April this year, Queensland residents were warned to be on the lookout for “rogue insulation installers” trying to swindle the rebate out of unsuspecting consumers or promising rebate eligibility to ineligible customers. The issues can sometimes go beyond the rebate and have safety implications.
Queensland Minister for Tourism and Fair Trading, Peter Lawlor said at the time, “Not only could you find yourself out of pocket, but when insulation is installed incorrectly it can be a major fire hazard.”
Overcharging and fraudulent invoicing isn’t the only issue – as reported last month by solar power company Energy Matters, many Australians have been taking advantage of subsidised roof insulation, unaware that in doing so they are then not able to apply for the Australian Federal Government solar hot water heater rebate.
The $1,600 solar hot water rebate can in some circumstances make a new system around the same price as a standard electric hot water service. Some states also offer additional rebates, dropping the price even further. With insulation for some homes costing less than the $1600 that may be quoted, in these circumstances consumers may get more bang for their rebate buck by opting for solar hot water.
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