FRIDAY’S unilateral decision to axe the insulation rebate has left local insulation installers reeling.
David Robson, principal of Tamworth-based All Aussie Insulation, has more than $10,000 in stock, which he says will be unmovable for months, rented warehouse premises, which will be terminated, a soon-to-be-vacant rented house, and two soon-to-be-unemployed employees.
Mr Robson said Friday’s decision had left him hugely out of pocket and he couldn’t see how he could avoid shutting down the business – at least for a while.
“It was clearly a split-second decision, with no thought to the viability of businesses that were delivering the Government’s scheme,” Mr Robson said.
“Many legitimate building and insulation businesses had geared up further to accommodate demand, and have invested in huge stocks of insulation to deliver on quoted jobs that now may never eventuate.”
A builder for 30 years and insulator for 10, Mr Robson said there were some issues with the scheme, however the biggest issue was how it was being run.
“In October, they (the Government) suddenly reduced the rebate from $1600 to $1200, costing everyone a huge amount in changing advertising, administration and redoing quotes for installations,” he said.
“This time around, all those quotes and householders that were waiting for installation will disappear.
“There is no way they will be going ahead with anything for at least three months, until we know how the new scheme will look.”
Terry Barry has been selling insulation in Tamworth for 30 years and installing it himself for 26.
He told The Leader he had already advised 38 clients waiting for insulation installation to wait longer.
“I told them I would talk to them in a month, once we know what is going to happen with the new scheme,” Mr Barry said.
“I have $25,000 of stock that won’t be moving, and work lined up for just one week at this stage.”
Mr Barry said he had lost a lot of sleep over the weekend trying to work out how to keep his two employees gainfully occupied.
“I’m hoping I can concentrate on renovations for a while, although that work hasn’t been booked because the time was devoted to the insulation side of the business,” he said.
“I want to keep my boys and don’t want to tell them they have to take a week off, but it will be a struggle.”
He said the aim of the scheme was laudable, but the running had been
terrible.
“I wrote to, emailed and phoned Peter Garrett’s office on several occasions last year to point out issues with the scheme. They (the Government) should have stepped back for three months at the start of the scheme. It is a fantastic goal – every house in Australia should have insulation,” he said.
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