Insulation axing hurts business

THE demotion of Peter Garrett from the role of Environment Minister has brought little comfort to small businesses in Ipswich, suffering from the fallout of the sudden decision to axe the home insulation program.

Ipswich Skylights owner Brian Scott was forced to let seven employees go after the cancelling of the $2.45 billion program, which has been linked to four deaths and 93 house fires.

Mr Scott said the consequences were disastrous for quality small businesses such as his, and for his employees.

“My business has successfully and safely installed insulation in an average of three houses a day, every day, from when the program started,” Mr Scott said.

“Before Christmas we were installing on up to six houses a day.

“Over this time I have employed seven extra installers, trained them correctly and now, because of the cancellation of the Home Insulation Program, I have been forced to let these employees go.

“It’s a terrible situation for me and for them. Rents and mortgages don’t go away just because a program gets cancelled.

“I really feel sorry for the people who’ve started up a new business as a result of the Home Insulation Program – they’ll be really hurting now.”

Prime Minister Kevin Rudd acknowledged the scheme had failed on Mr Garrett’s watch.

“There have been real problems with the implementation of this program; there have been real problems with compliance,” he told ABC TV on Sunday.

“The minister has had those responsibilities removed from him.”

Mr Rudd handed responsibility for a new insulation scheme to Greg Combet, who is already the Minister for Defence Personnel, Material And Science.

Ipswich Chamber of Commerce and Industry past president Martin Corkery said it was grossly unfair that honest small businesses bore the brunt of the failure of badly administered programs.

“It’s terrible that the bad apples always spoil it for the responsible ones,” Mr Corkery said.

“Having to let employees go is always terrible, but doing it as the result of mismanagement by government and the abuse of the program by shonky dealers just makes the whole thing so much harder.

“Across Australia there will be innumerable small businesses facing the same hard decisions that Brian Scott is faced with today.

“The question must be asked as to what these recently unemployed insulation workers do until the new insulation program gets under way later in the year.

“I call upon the federal government to consider how best to support those honest and diligent business people such as Brian Scott and his staff during the transition to the new insulation installation program.

“The departments need to take a careful look at how small business works and how best to service consumers.”

Australian Defence Association executive director Neil James on Monday said ministerial attention rightly paid to defence had been cut in the interests of political expediency and the short-term electoral cycle.