Government's lack of faith over home insulation suppliers

The Federal Member for Mitchell, Alex Hawke, has slammed the Rudd Government over the damage caused to local small businesses by the sudden discontinuation of the Home Insulation Program.

"The breathtaking lack of planning, organisation, and structure of this Rudd Government Program is continuing to be felt throughout our local community," Mr Hawke said.

"When the Rudd Government suddenly discontinued the Program in February, legitimate businesses who supplied insulation suddenly found their orders from installers cancelled.

"Businesses who in good faith had checked with the authorities and were informed that the Program would continue until December 2011, or until the Program had reached its capacity of $2.8 billion, and ordered stock accordingly, were now in possession of stock they could no longer supply.

"Even more frustrating for these suppliers is that they are still expected to pay GST and customs duties on this stock, some of which was still to arrive in Australia when the Rudd Government discontinued the program," Mr Hawke said.

Mr Hawke said the Home Insulation Program had been a disaster for many local residents, some of whom had insulation incorrectly installed, and others who were employed in the industry.

"There are good and reputable people, both installers and suppliers of home insulation, who are now coloured by the taint of this failed Rudd Government Program," Mr Hawke said.

"The Rudd Government is drunk on billions of dollars of borrowed money. In their rush to get programs underway, the resources and processes required to properly implement them clearly have not been in place.

"Local residents and businesses, who have acted in good faith, are facing dire consequences, and in some instances, financial ruin.

"The Rudd Government must show the same urgency in addressing the financial pressure facing suppliers of insulation, as they did in rushing out the Home Insulation Program in the first place.

"Suppliers of insulation who have acted in good faith, should be given a chance to remain commercially viable, for when this Program resumes, expected in several months," Mr Hawke said.