WebDevSys

Articles > Australian Insulation Rebate - Shonky free ceiling insulation installers -  Rogue - Peter Garret

Introduction

Since early 2009, The Australian Government started offering full rebates for installation of ceiling insulation. At the time, any business or company with an ABN or ACN could carry out the work. As a result, the insulation industry started booming - including 'cowboys' without the experience nor qualification. Overseas batt manufacturers flooded the market with inferior products that do not confirm to Australian Standards, with some batts containing formaldehyde - a carcinogenic chemical.

Thousands of unscrupulous contractors and rogue businesses, without the appropriate qualification or experience, started making unsolicited calls to millions of residents offering insulation, regardless of whether it was required or not.

Most residents, unware of the risks, agreed to the installation. Because there were no out-of-pocket costs involved, the majority of residents were lured (usually by greed) into getting the work done. The government pays the installers for the costs of labour and materials. The environment minister, Peter Garret, is to blame for implementing such a programme without the proper measures or bugeting to prevent such things from happening.

A report on 16 February 2010 says up to 400,000 homes could have dodgey insulation installed. The foil insulation could lead to electrical fires if installed improperly. The imported batts could lead to health problems.

Problems

Often, the work is not up to the standard. Recently (January 2010) the Australian Government identified problems with foil-based insulation. Installers were not trained properly on the proper installation of this type of insulation. In several cases, installers were electrocuted from using metal fasteners, which inadvertently were driven into electrical wiring. Also, in older homes, the wiring has deteriorated (electrical insulation breakdown), with the conductor coming into contact with the foil, 'electrifying' the ceiling space. Anyone working in the space would be at risk of electrocution. The foil can also cause short-circuits if installed improperly, leading to house fires.

From 12 February 2010, installers are required to undertake training and gain the appropriate qualification before they are permitted to unertake such work.

Wasted taxpayer funds from unecessary installations. Residents in newer homes may not realise their existing insulation is already up to the standard. They then agree to the installation of 'extra' insulation, which has no added effects or advantages on their heating/cooling requirements. At a cost of $1200 per home, each unecessary installation adds more burden to taxpayer-funded budgets. Shonky installers will say anything to get your business.

Wated taxpayer funds from fradulent installations. A large number of properties that have agreed to have insulation installed have only had a partial installation done. The fraudulent shonky installers only install insulation material into one half, or even a quarter of the ceiling, hoping the owner doesn't realise they have been ripped off. The installer then claims the full $1200 rebate from the Australian Government, even though they only used $200 or less in materials.

Incorrect installations. Often, the new insulation batts are installed on top of existing insulation batts. In some cases, the old insulation must be removed to ensure the effectiveness of the new material. However, the contractors do not do so because it costs them money, so they take shortcuts.

Possible security risk. When thousands of installers (with their apprentices) go into millions of homes, residents' personal assets and property (such as TVs, computers, appliances, etc) can be seen and noted. Armed with such information, unscrupulous installers can potentially steal property, or pass/sell the information onto other crime syndicates.

Privacy breaches. Representative organisations call up with the intention of organising a date and time for an contractor to conduct an inspection and/or possible installation. The unsettling part is when they tell you your name, address and phone number and ask you to confirm if the details are correct. This must mean they have purchased, or been given address lists to use. These organisations gain a 'commission' to book in customers on behalf of contractors.

Risk of damage. There have been instances of installers failing to refurbish roof tiles, and the owner only finding out on a rainy day of a hole in their roof with leaks. Repairing the ceiling water damage can become a nightmare. Also, if insulation has been installed over downlights, there is a risk of fire.

Incompetent call centre staff. Most of the unsolicited calls are made by persons with an Indian accent. When questioned, most do not even know their company's ABN, phone number or even address. Perhaps they act stupid in order not to reveal such information? It is absurd that residents trust such businesses with major works on their homes when shonky businesses try to hide behind anonymity.

Bad call timings. The calls rarely occur in the mornings and afternoons. They usually happen between the hours of 5pm until 8pm. More often than not they call during dinner time - the most inappropriate time - especially when TV news programmes are covering the issue. It makes you wonder how these people even get business by irritating homeowners during these times.

Actions you can take

Don't accept installations from unsolicited callers. Often, they are there to make a quick dollar by:

• Gaining as much work as possible (even if it is not warranted, thereby wasting Australian taxpayer dollars)
• Performing the work as quickly as possible without regards to safety or quality
• Hiring unsuitable workers to perform the work and under-paying them

If you decide your home really does need new or additional insulation installed, you should call a reputable installer. Only under exceptional circumstances accept work from an unsolicited caller.

Remember, the unsolicited installers are not there to look after your interests. They will simply do anything to get the work in order to make quick money.

As always, use the Australian Government's Do Not Call Register to prevent such calls from being made to you.

Accepting work from an unsolicited offer

If you do accept an installation offer from an unsolicited caller, you should always ask for:

• Their full business name
• Their ABN

When the installer arrives, and before work begins, ensure you record and verify:

• Their vehicle's registration number
• Their credentials (ask for identification)

Also make record of the date, time and how long the work took to complete. If there are problems in the future, it will be easier to make a complaint or even seek compensation from damages.

It is also difficult to make a request to 'fix' incorrect installations or subsequential damage as a result of negligence. The contractors will usually say 'you didn't pay for it, so don't complain'.

Culprits on the list:

Premium Installations Pty Ltd

An organisation that calls themselves 'Bliss', based in South Melbourne, an agency that calls on behalf of contractors and takes commission from insulation work

Aftermath

After Peter Garret closed down the scheme in mid February 2010, many legitimate insulation installation businesses were left without work. Employers were forced to sack workers due to lack of work.

Many homeowners with dodgey insulation installed have little recourse with the installers - almost all of the rogue and shonky installers would want to have nothing to do with the installation - and when called to rectify the problem, they refuse to take corrective action. It is now up to the government to send out auditors to inspect the installations.

Let Us know

If you know of any other businesses with bad practices, let us know!

Also, if your home has bad insulation installed, let us know here.

Comments

  Add a comment

Your name:

Comment:

Verification code:
Type the letters and numbers that you see.