APPENDIX 9: CHRONOLOGY OF KEY EVENTS

DATE

KEY EVENT

September 2008

‘Global Financial Crisis’ commenced with collapse of Lehmann Brothers in the United States of America.

14 October 2008

Prime Minister Rudd announced the Economic Security Strategy.

December 2008

Prime Minister’s Office requested a ‘big idea’ on energy efficiency policy from Minister Garrett.

Late 2008

Department of Environment, Water, Heritage and the Arts (DEWHA) commenced developing a national energy efficiency program

23 January 2009

Strategic Priorities and Budget Committee (SPBC) meeting—SPBC requested development of an Energy Efficient Homes Package (EEHP) which would provide roof insulation and run over two years.

23 January 2009

Department of the Prime Minister and Cabinet (PM&C) officials instructed DEWHA to liaise with Department of Finance and Deregulation (DoFD) to develop a home insulation proposal which would run for two years.

24—26 January 2009

Mary Wiley-Smith and Beth Brunoro (née Riordan), DEWHA, developed home insulation proposal in consultation with DoFD. DEWHA expressed concerns regarding the two year roll-out and developed a second proposal with a five year rollout.

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27 January 2009

SPBC meeting—considered home insulation proposal with two year roll-out option and $1200 rebate. SPBC then requested development of proposal for $1600 rebate with both two year and five year roll-out options.

28 January 2009

SPBC meeting—considered proposals for two year and five year roll-outs. SPBC not informed of DEWHA preference for five year roll-out. Homeowner insulation program approved with two year roll-out and $1600 rebate.

3 February 2009

Nation Building and Jobs Plan (NBJP) worth $42 billion announced. NBJP included the EEHP of which the Homeowner Insulation Program (HIP) was part.

3 February 2009

Phase 1 of the HIP commenced.

5 February 2009

COAG meeting—endorsed the EEHP, agreed to new national coordination arrangements to maximise the timely and effective delivery of the NBJP, and signed National Partnership Agreement.

5 February 2009

Mike Mrdak commenced as Commonwealth Coordinator-General.

Report of the Royal Commission into the Home Insulation Program

DATE

KEY EVENT

18 February 2009

First industry consultation meeting held.

18 February 2009

First SPBC implementation report.

19 February 2009

Peter Ruz, Insulation Council of Australia and New Zealand (ICANZ), emailed Ms Brunoro and advised of safety concerns and risk of serious injury or death to installers. Advised of deaths in New Zealand scheme.

26 February 2009

Early Installation Guidelines released (Version 1).

2 March 2009

Tony Leverton, Queensland Electrical Safety Office (QESO) raised electrical safety and insulation surrounding downlights with Ian Jennings, Queensland Building Services Authority (QBSA), and sought advice on actions to ensure that licensed installers undertook jobs competently and safely.

9 March 2009

National Electrical and Communications Association (NECA) wrote to Minister Garrett raising concerns about dangers when insulation is installed inappropriately near electrical equipment and cables, and the risk of fire associated with installation of insulation near downlights.

13 March 2009

Margaret Coaldrake, Minter Ellison Consulting, engaged by DEWHA to develop risk register and risk management plan.

20 March 2009

Industry roundtable meeting—installer training and industry concerned about requirements for two quotes to be eligible under the scheme were discussed.

23 March 2009

Martin Hoffman joined PM&C as Executive Co-ordinator, Strategic Policy & Implementation Group. Role included assistance to the Coordinator-General.

26 March 2009

Mr Hoffman raised concerns with Kevin Keeffe, Assistant Secretary, Home Energy Branch, DEWHA about DEWHA’s brokerage model, in that it may not meet the principle “of the need to preserve the relationship of choice between the householder and any qualified installer.”

27 March 2009

DEWHA engaged KPMG to develop DEWHA’s regional brokerage model.

31 March 2009

Meeting between Senator Arbib, Mr Mrdak, Mr Hoffman, Andrew Wilson (Office of Coordinator-General (OCG)) , and Ross Carter and Mr Keeffe of DEWHA. Mr Carter and Mr Keeffe were advised that the model for delivering the HIP would not be a brokerage model. Matt Levey, policy adviser to Minister Garrett, later advised DEWHA the delivery model was changed from the regional brokerage model because Senator Arbib and OCG wanted priority given to generating small business activity.

Appendix 9: Chronology of Key Events

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348

DATE

KEY EVENT

2 April 2009

Project meeting focussing on risk management strategies held, with Minter Ellison Consulting distributing the first draft of their risk management plan.

3 April 2009

EEHP technical workshop held.

8 April 2009

First Project Control Group (PCG) meeting held.

8 April 2009

Risk mitigation workshop held.

16 April 2009

PCG endorses the risk management plan.

20 April 2009

DEWHA responded to NECA’s letter to Minister Garrett noting that training was in place to address their safety concerns.

23 April 2009

Ms Coaldrake completed the risk matrix and was retained as the HIP Strategic Risk Advisor.

29 April 2009

Industry compliance workshop held.

8 May 2009

PCG changed the applicability of the competency requirements from ‘installers’ to ‘supervisors’ and noted management of ‘extreme risk.’

10 May 2009

Kevin Herbert of the Australian Cellulose Insulation Manufacturers Association (ACIMA) advised members that DEWHA stated in a training workshop that the program was likely to continue past 31 December 2011 and that DEWHA would persist with agreed targets despite expected fraud and house fires.

18 May 2009

Master Electricians Australia (MEA) issued a media release warning of the dangers of house fires where insulation is installed too close to light fittings.

1 June 2009

Program Guidelines Version 2 issued. The Guidelines refer to competency requirements of supervisors.

29 June 2009

Minister Garrett chaired a meeting with industry where training requirements, fraud risk and issues including supply lines and price creep were discussed.

16 June 2009

Minter Ellison Consulting proposed a Program Management Health Check for HIP and the Department of Education, Employment and Workplace Relations (DEEWR).

26 June 2009

Minter Ellison Consulting published draft results of Program Management Health Check “Record of Consultation” which noted, inter alia, that ‘everyone [was] stressed’, the division had a large program ‘dumped on top’, a need for frank and fearless advice to Government during operation phase, the program was ‘lurching from crisis to crisis’, and that the program started with ‘extreme risk’.

June—October 2009

Memoranda of Understanding (MOUs) between the Australian Government and State and Territory fair trading and consumer affairs agencies signed to establish an information-sharing arrangement for complaints made in relation to the HIP.

Report of the Royal Commission into the Home Insulation Program

DATE

KEY EVENT

30 June 2009

Installer Advice 1 issued.

1 July 2009

Phase 2 of the HIP commenced.

1 July 2009

Version 2 of the Program Guidelines released.

1 July 2009

MOU with Medicare commenced.

6 July 2009

EEHP Key Milestones Review published (including at Appendix B the results of the Project Management Health Check). Recommendations included: ensuring risk management plan be brought up to date, urgently finalise risk treatments and review the risk register at planning day.

7 July 2009

HIP project team attended a planning day. Agreed indicators of success included ‘no deaths’, and the ability to meet expectations to focus on individual circumstances.

15 July 2009

Installer Advice 2 issued.

16 July 2009

DEWHA contacted Workplace Health & Safety Queensland, inviting them to work with DEWHA and Safework Australia in taking a nationally co-ordinated approach to “some very important OH&S issues” identified in the work being undertaken by insulation installers.

22 July 2009

Installer Advice 3 issued.

31 July 2009

PCG meeting.

1 August 2009

KPMG paper: industry supply analysis on the capacity of local manufacturers to meet demand and how a shortage of insulation products might impact quality.

6 August 2009

Installer Advice 4 issued.

7 August 2009

Insulation manufacturers meeting noted that local manufacturers had increased production to try to meet demand, and were operating at full capacity.

10 August 2009

DEWHA followed up their email to Workplace Health & Safety Queensland of 16 July 2009, to which they had received no response, seeking to open a dialogue regarding OH&S issues in the insulation industry.

13 August 2009

PCG meeting held. Supply shortages were discussed.

14 August 2009

Minister Garrett wrote to Prime Minister Rudd seeking agreement to changes to a related scheme and to including a HIP requirement for two quotes.

24 August 2009

Installer Advice 5 issued.

27 August 2009

Installer Advice 6 issued, noting program changes from 1 September 2009.

Appendix 9: Chronology of Key Events

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350

DATE

KEY EVENT

27 August 2009

Minister Garrett wrote to Prime Minister Rudd regarding work standard concerns and tightening the Program Guidelines.

31 August 2009

DEWHA brief to Minister Garrett, responding to his request for an update on fraud control and compliance activities for the HIP.

1 September 2009

Version 3 of the Program Guidelines released.

1 September 2009

ACIMA provided a submission to DEWHA seeking urgent amendments to the Program Guidelines.

2 September 2009

Installer Advice 7 issued.

3 September 2009

PCG meeting—focus shifted from ‘take-up to compliance.’

3 September 2009

DEWHA were advised that NSW Consumer Affairs had seen a significant volume of recent house fires related to insulation.

4 September 2009

Prime Minister responded to Minister Garrett’s letter of 14 August 2009, agreeing to changes in a related scheme but not agreeing to a HIP requirement for two quotes.

11 September 2009

Installer Advice 8 issued.

25 September 2009

PCG meeting—number of complaints under MOUs with State and Territory fair trading organisations discussed.

29 September 2009

Installer Advice 9 issued.

29 September 2009

Mitchell Sweeney, a 22 year old from Queensland, commenced work with Titan Insulations Pty Ltd, a registered installer under the HIP.

1 October 2009

PCG meeting.

2 October 2009

Mr Matthew Fuller, a 25 year old from Queensland, commenced work with QHI Installations Pty Ltd (QHI).

2 October 2009

QHI conducted a meeting with staff discussing safety regarding electrical hazards.

2 October 2009

Mitchell Sweeney completed insulation training.

6 October 2009

Energy Safe Victoria provided advice to DEWHA regarding house fires caused by insulation.

9 October 2009

Monique Pridmore, a 19 year old from Queensland, commenced working for QHI.

9 October 2009

Installer Advice 10 issued.

12 October 2009

Industry Roundtable meeting. ACIMA advocated for a closely managed run down of the HIP leading to its 31 December 2011 closure “to protect those who had heavily invested in plant etc.” Ongoing issues regarding supply shortages and imports were discussed.

Report of the Royal Commission into the Home Insulation Program

DATE

KEY EVENT

12 October 2009

Energy Safe Victoria’s previous advice was updated to include an additional four fires.

14 October 2009

Matthew Fuller died following electrocution while installing reflective foil laminate (RFL) insulation.

14 October 2009

Monique Pridmore seriously injured in the same incident.

16 October 2009

Malcolm Richards, Chief Executive Officer of MEA, issued a press release and wrote to Minister Garrett regarding concern over reports of incidents from members regarding staples used with RFL and insulation laid over downlights.

19 October 2009

Installer Advice 11 issued, including a safety notice which included advice regarding: turning off the power; circuit breakers and Residual Current Devices (RCDs); downlight covers; and high temperatures.

20 October 2009

Mr Richards met with Minister Garrett.

20 October 2009

The HIP policy team at DEWHA sought advice from the Energy Efficiency and Conservation Authority of New Zealand regarding the banning of the use of foil in a similar insulation program in July 2008.

22 October 2009

PCG meeting. Fire statistics were discussed.

26 October 2009

Installer Advice 12 issued (special issue on safety).

28 October 2009

Rueben Barnes, a 16 year old from Queensland, commenced employment with Arrow Property Maintenance Pty Ltd.

28 October 2009

Price Waterhouse Coopers (PwC) facilitated a risk workshop with DEWHA staff.

28 October 2009

Minister Garrett wrote to Prime Minister Rudd seeking agreement to changes to the Program Guidelines and a reduction in the rebate amount.

29 October 2009

PCG meeting—compliance issues were discussed.

29 October 2009

ACIMA raised concerns with Mr William Kimber of DEWHA about their members being forced to undertake training not relevant to installers of cellulose insulation.

29 October 2009

Prime Minister Rudd replied to Minister Garrett’s letter of 28 October 2009, agreeing to the proposed changes.

30 October 2009

PwC reported on risk workshop with DEWHA. Discussion included policy changes and the risk that increased fraud may divert resources away from fire, OH&S and safety compliance toward fraud detection.

30 October 2009

Minister Garrett wrote to Prime Minister Rudd regarding changes to the Program Guidelines and a proposed package of safety measures.

Appendix 9: Chronology of Key Events

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352

DATE

KEY EVENT

1 November 2009

Electrical safety inspections of foil installation in Queensland announced by Minister Garrett.

1 November 2009

Installer Advice 13 issued noting reduction in rebate and prohibition of metal staples.

2 November 2009

Version 4 of the Program Guidelines released—metal staples prohibited and rebate reduced to $1200.

2 November 2009

Prime Minister Rudd replied to Minister Garrett’s letter of 30 October 2009, agreeing to Guideline changes and noting safety measures.

5 November 2009

Mr Keeffe responded to Mr Herbert by email, regarding downlight covers, noting that DEWHA did not have a legislative basis to set product acceptability rules or regulate the insulation industry.

6 November 2009

Installer Advice 14 issued.

13 November 2009

Installer Advice 15 issued.

18 November 2009

Installer Advice 16 issued including revised terms and conditions for registration.

18 November 2009

Rueben Barnes died of electrocution while installing fibreglass insulation.

21 November 2009

Marcus Wilson died of heat exhaustion while installing insulation.

27 November 2009

Installer Advice 17 issued noting program changes from 1 December 2009.

30 November 2009

Enhanced training material for the installation of ceiling insulation released by Construction & Property Services Industry Skills Council (CPSISC) for DEWHA.

1 December 2009

Version 5 of the Program Guidelines released—requirement for two quotes introduced.

11 December 2009

Installer Advice 18 issued.

17 December 2009

Installer Advice 19 issued noting installers required to provide evidence of minimum training by 12 February 2010.

23 December 2009

Installer Advice 20 issued noting approved list of insulation products to be introduced.

2 January 2010

Installer Advice 21 issued noting new training requirements.

3 February 2010

Installer Advice 22 issued noting new competency requirements.

4 February 2010

Mitchell Sweeney died of electrocution while installing RFL insulation using metal staples.

9 February 2010

Installer Advice 23 issued noting that the use of foil suspended under the HIP.

10 February 2010

Foil Insulation Safety Program (FISP) commenced.

Report of the Royal Commission into the Home Insulation Program

DATE

KEY EVENT

19 February 2010

Installer Advice 25 issued noting HIP to be discontinued as of close of business that day, to be replaced by a Renewable Energy Bonus Scheme (REBS), the insulation component of which would commence 1 June 2010.

22 February 2010

Home Insulation Safety Program (HISP) announced.

24 February 2010

Insulation Workers’ Adjustment Package (IWAP) announced.

9 March 2010

Installer Advice 26 issued.

6 April 2010

Report of Dr Allan Hawke’s Review of the Administration of the Home Insulation Program published.

22 April 2010

Announced that the insulation component of the Renewable Energy Bonus Scheme would not proceed.

6 May 2010

Insulation Industry Assistance Package (IIAP) commenced.

4 July 2010

IIAP closed.

Appendix 9: Chronology of Key Events

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