Judith Troeth (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Energy Efficiency, Climate Change and Water, Senator Wong. How will the unknown costs for the home insulation clean-up of unknown duration be met? Is the Prime Minister right when he says that it will come from ‘funding left in the original program’ or is the Treasurer right when he says that paying for it may require ‘adjustments’ to other programs ‘elsewhere in the budget’?

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

The Prime Minister has made clear that the funding for this program will be met within the funding provided for the program already. However, as the Treasurer has also made clear, this is a process that will be considered through the budget process. The government is obviously of the view that this will be a significant program. Minister Combet has outlined very clearly that there are some substantial rectification requirements as a result of the problems of the program. The government has been quite upfront about those. Minister Combet laid out to the parliament—

Honourable Senators:

Honourable senators interjecting—

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

Order! The minister is seeking to answer this question.

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

I have this little audio of Barnaby at the end—net, public, private, all sorts of things.

Opposition Senators:

Opposition senators interjecting—

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

Order! Senator Wong, ignore the interjections.

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

I am seeking to do as you say, Mr President; I am seeking to ignore it. As I said, Minister Combet has made a full ministerial statement on these issues. Obviously, the costings of the various rectification matters, including the inspection and audit regime, will be a matter on which the government will provide further detail in the future. We recognise this is a significant issue and we are making progress in dealing with it. But, at this point, the costs of that audit and inspection program have not yet been finalised.

Judith Troeth (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Minister, if, as appears from your answer, the funding for the clean-up is going to come from within existing allocations, what impact will this have on the new program, due to start by 1 June? How many fewer rebates will be paid and how many fewer homes will receive insulation because of the cost of the clean-up?

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

I think that is somewhat of a long bow, with respect, to be suggesting that we could at this point in time give any indication about the costs, given that we have outlined that those costs are to be determined. I think also the senator is making an assumption about the nature and design of the rebate. That is an issue the broad parameters of which were announced by Minister Garrett at the time the government indicated it was closing the HIP. Obviously Minister Combet is working on the design of the REBS—the Renewable Energy Bonus Scheme—and further details as to the parameters of that will be provided in the future. My recollection—and I will have to check my notes on that—is the start date was 1 June. Obviously, though, those matters are still to be considered in the design.

Judith Troeth (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that the answer seems to be ‘all of the above’, is it true that the Rudd government has no more idea of how it is going to pay for the clean-up of this disastrous program than it does of have much it will cost, when it will start, when it will finish or what impact it will have on the new program? Is it possible to get a clear-cut answer to any of these questions?

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

I remind the Senate that the government has made clear that the government will be meeting the cost of the foil inspection program. The amount required to meet the government’s commitment on safety inspection and remediation work for the non-foil inspection will be met from within the existing budget for the Home Insulation Program. Obviously the government is still in the process of negotiating with potential contractors on the inspection regime. There are further details in relation to the cost which will need to be resolved. The government has also indicated it will fully meet the costs of the foil inspection program. My comments earlier about the funds in the existing budget from the HIP pertain to that program as well.