By Alesha Capone
HOBSONS Bay insulation workers have been left devastated by the Federal Government’s decision to scrap its failed home insulation program.
Environment Minister Peter Garrett axed the scheme amid claims four workers died after installing the insulation, under a government program which offered home owners a rebate of over $1000.
Andy Chaudhery, who owns the Laverton-based business Cheap Insulation, said he had been forced to lay off six workers since the government’s scheme ended on 19 February.
Mr Chaudhery said he had been a sole trader before the government announced the rebate scheme.
However, to meet increased demand after the rebate progam began, Mr Chaudhery set up a company and obtained a bank loan to buy a warehouse in Laverton.
The Point Cook resident said the scheme’s abrupt end caused him to lose up to $50,000.
“At this stage, I’m completely out of business,” he said.
“My staff also don’t know what to do. They call and ask me what’s happening every day.”
“It’s a nightmare for me. It’s going to affect me for a lifetime, but it took the government one minute to make the decision,” he said.
Mr Chaudhery said he would try to re-establish his business installing a different kind of insulation in new homes, but it would take him at least a year.
Stella Armstrong from Higgins Insulation said she had five workers in the Altona area who were out of work.
Ms Armstrong said she would be lucky if she could keep her business after the government ended the insulation program.
The company is a family business which has been in operation for more than 15 years.
“The workers were totally shocked, absolutely shattered. They were all good guys doing a good job,” she said.
Ms Armstrong said she had spent about $15,000 training her employees and she hoped they would quickly find new jobs.
Altona Meadows’ resident Tony Dimitriadis, who operated an insulation business for over two decades, said the government’s scheme forced him into early retirement last year.
Mr Dimitriadis said he planned to retire in two years’ time, but the government rebates had caused him supply problems.
The Federal Government said they would introduce a scheme to assist insulation workers, by giving them support until new Renewable Energy Bonus program begins mid-year, a $10 million Insulation Workers Adjustment Fund and other measures.
For more information contact the government’s hotline on 1800 808 571.
