Warning on rip-offs by dodgy pink batt installers

Australian
Monday 16/3/2009 Page: 2

CONSUMERS stand to be ripped off by a flood of dodgy dealers entering the insulation sector to profit from the Rudd Government's $3.9 billion scheme, the industry has warned. Pink batt installers say new businesses run by pest controllers, gyprockers and pool and spa companies have sprung up as battling tradesmen seek to benefit from the Government's offer to pay subsidies up to $1600 to householders buying insulation.

The scheme, which is part of Government's efforts to stimulate the economy, starts on July 1, but householders can already order insulation and apply for a refund. While the Government has hailed the scheme as a way to boost economic activity and energy efficiency, industry veterans have told The Australian taxpayers could have to pay to fix up shoddy work.

The warning follows Opposition criticism that the stimulus package was flawed because some cash handouts were made to foreigners and dead people. Abbco Insulation's Bevin Buksin, an installer for 13 years, said he had been approached by scores of people with no experience, seeking materials.

"I am concerned I am competing against people gyprockers, pest controllers, you name it who have just come into the industry," he said. Justin Beck, manager of installation company Patnicar, said those new to the industry were cutting corners, quoting jobs using Google Earth and not specifying materials. If their method of quotation translates into their method of installation, then everyone should be concerned," he said.

Insulation manufacturer Bradford's Ray Thompson said installers did not need a licence, and no standards applied to existing homes. "Retrofitting of insulation in Australia is a highly unregulated, pretty out-there market," he said. "It's not a highly skilled job, but the management of it requires a good level of knowledge and experience to ensure the jobs are being done well."

Insulation Council of Australia and New Zealand chief executive Dennis D'Arcy said the industry was working with the Government to devise a national training program for installers. He said the Government and the industry should share the costs of mandatory training for all installers.