Insulation scheme to drive job hopes

Australian
Wednesday 4/2/2009 Page: 2

THE Rudd Government is hoping low-skilled unemployed people will be quickly retrained as insulation installers to meet the demand fuelled by its temporary $1600 grant to any home owner needing energy-saving roof insulation. The $2.7 billion insulation program could benefit up to 2.2 million homes, saving them about $200 a year on their energy bills, but falls short of the sweeping ''green jobs" plan advocated by conservation groups and the unions that covered a wider range of energy efficiency measures and commercial as well as private buildings.

The Government said it opted to concentrate on insulation because it was by far the most cost-effective residential energy efficiency improvement; retrofitting commercial buildings was far more expensive and administratively complex. Opposition Leader Malcolm Turnbull has advocated tax breaks for energy-efficiency improvements to commercial buildings, but the Government believes its plan will get spending into the economy faster.

We are advised that the single most effective measure in terms of energy efficiency is insulation," Kevin Rudd said. To meet the Government's goal of rapidly stimulating spending, the $1600 grant will be available from July 1, but home owners who install insulation before then will be also be able to claim reimbursement.

And those who do not need insulation could be eligible for the now non-means-tested solar hot water rebate, which has also been increased to $1600, at an additional cost to budget of $507 million over three years. The solar hot water rebate is available only to those replacing electric storage hot water systems and those who have not already claimed the insulation assistance.