Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change, Energy Efficiency and Water, Senator Wong. Can the minister tell the Senate the total amount of claims for reimbursement by insulation companies under the Home Insulation Program that remain unpaid by the Rudd Labor government and when they will be paid?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I am not sure that I have the detail of precisely how many claims are outstanding. I know that Mr Combet provided some figures to the House yesterday in relation to the total number of homes insulated, which was 1.1 million homes at an average of 137,000 per month. I will see if I can provide any information about outstanding claims. I do know, because of the significant size of the program, that there may have been some delays in relation to the payment of claims. I will see if I can provide any further information to you on that issue, Senator Colbeck.

Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. One of these companies that are owed money under the bungled Home Insulation Program from the government is one of the biggest insulation companies in the north-west region of Tasmania. As a result of the government’s bungling, it has been forced to drastically reduce its workforce and will lose almost all of its employees. How many Tasmanians have lost or will lose their jobs as a result of the bungled Home Insulation Program?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I have just found some information, Senator Colbeck, in relation to your first question. A range of manual payments were received by the Department of the Environment, Water, Heritage and the Arts in the seven days after the closure of the program—around 107,000 manual claims. That has obviously put a strain on the payments system. To help address concerns, I can indicate that Medicare Australia has put on extra staff to assist in the processing of the backlog of these claims. The payments will not be made to companies until it is clear they have satisfied the necessary compliance requirements. I would make clear that the compliance checking may take some time but I am advised that the department is working hard to process the claims as quickly as possible. So the figure was 107,000 manual claims in the first seven days.

In relation to the industry issues, the government is considering all issues in relation to the closure of the Home Insulation Program. (Time expired)

Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. What investigations is the government conducting into the concerning practice of major insulation manufacturing companies dispatching to contractors after the closure of the scheme large consignments of insulation, which are now of no use? What action will the government take in relation to this practice?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

There are a range of compliance and audit issues which this program has experienced. The government has been very open and forthcoming about those issues.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Abetz interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

Senator Abetz, if you had taken the time to read the ministerial statement, you might actually be aware of some of them. What I can indicate is that the minister has outlined a number of steps taken to mitigate risk. He has outlined the department’s compliance activities, which are continuing subsequent to the termination of the program. He has also indicated that the department will work closely with the Australian Federal Police as well as state and territory police—

Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Mr President, I rise on a point of order in respect of relevance. My question was not in relation to the insulation contractors and companies who were installing insulation but in relation to the practices of the major manufacturers who have dispatched large consignments of insulation to these contractors after the date of the closure of the scheme and which now are worthless to the contractors. It is quite different from what the minister is saying.

John Hogg (President) Share this | Link to this | Hansard source

The minister has 10 seconds remaining to answer the question.

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

If the senator is suggesting there is fraudulent, inappropriate or noncompliant behaviour in relation to this program, he should forward that information to the appropriate authorities. (Time expired)