Since the scheme was released last February, as part of the Rudd Government’s $42 billion stimulus package, 1.1 million homes have been insulated.
The program was designed to create jobs for tradesman and unskilled workers, but instead, up to 6000 workers are now at risk of losing their jobs, The Australian reports.
The Environment Department said in an audit of the program that 8 per cent of insulation work had not complied with guidelines, and 16 per cent of insulation was not of the quality required.
Materials used, and the honesty of those installing the batts, have come under question this week.
A revised program would see homeowners rather than service providers claim the rebate.
Mr Garrett admitted that had this revised registration program been in place, 4000 companies would have been suspended and 1050 deregistered.
Only 2500 companies – those honest ones who have the most to lose from the scrapping of the scheme – would have met the requirements, Mr Garrett admitted.
Also affected by relevant accreditation issues, is the Green Loans Program, which offered interest free loans worth $10,000 for environmentally friendly home improvements.