The Home Insulation Program will not continue with the insulation component of the Renewable Energy Bonus Scheme (REBS) following advice from a report.

The insulation component of the REBS was due to commence June 1 this year. The Solar Hot Water Rebate component will proceed as previously announced.

The Government has shifted its primary focus to safety in winding up the Home Insulation Program.

Dr Allan Hawke advised the Government in his Review of the Administration that he has "grave concerns about the wisdom of proceeding with any further government supported home insulation program".

His report noted that "the safety and quality risks cannot be fully abated and both the Government’s efforts and those of reputable industry players will be largely deployed on the Government’s rectification program, which must proceed as soon as possible."

He advised that if the Government did take the decision to proceed, significant risk mitigation policies would be required and the implementation of these policies would cause a significant delay to the June 1 start date.

Due to these concerns about the development of an appropriate risk management framework in regards to safety and compliance issues, the Government has decided that REBS will proceed without the insulation component.

Dr Hawke’s report will be tabled in Parliament today and made available publicly.

The Government has established the Home Insulation Safety Program (HISP) and the Foil Insulation Safety Program (FISP).

Under the HISP, safety inspections of a minimum of 150,000 homes that had non-foil insulation installed under the HIP will be carried out. In line with Dr Hawke’s recommendation, the HISP will begin as soon as possible once the Government is satisfied that the appropriate compliance and safety mechanisms are in place.

Under the FISP, the 50,000 homes that had foil insulation installed under the HIP will have the option of having the foil insulation removed or alternatively, on the advice of a licensed electrician, having safety switches installed.

The Government has committed $56 million to assist insulation workers and companies affected by the closure of the HIP and extended the opportunity for firms to apply for deferral of their GST payments.

It will release detailed guidelines for the $15 million Insulation Industry Assistance Package.