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Budget 2009—Home Insulation and Clean-heating Devices

Wednesday 3 June 2009 Hansard source (external site)

Lotu-Iiga3. PESETA SAM LOTU-IIGA (National—Maungakiekie) Link to this
to the Minister of Energy and Resources

What assistance does Budget 2009 provide for people wanting to insulate their homes and use clean-heating devices?

BrownleeHon GERRY BROWNLEE (Minister of Energy and Resources) Link to this

Budget 2009 appropriates $323.4 million over the next 4 years for the New Zealand home insulation fund. Funding for insulation and clean-heating devices will be available to all New Zealanders, regardless of income, who live in houses built before 2000. Households will be able to access one-third of the costs of insulation, up to a maximum of $1,300, and $500 for clean-heating devices. More money will be available to community services card holders. The Government’s goal is to see up to 60,500 homes insulated each year by 2012-13.

Lotu-IigaPeseta Sam Lotu-Iiga Link to this

Why is the Government investing in home insulation and clean heating?

BrownleeHon GERRY BROWNLEE Link to this

The Government is making this substantial investment because insulation and clean heating have so many benefits. Let me name three: first, the scheme will reduce health risks for many Kiwis living in cold, damp homes at present; second, the scheme will improve household energy efficiency; and, third, the scheme will provide a stimulus for the building and construction industry.

Lotu-IigaPeseta Sam Lotu-Iiga Link to this

How does this new scheme compare with previous schemes of its type?

BrownleeHon GERRY BROWNLEE Link to this

There are many important differences in this scheme compared with the one that Labour promised. The most important difference is that this one is funded and Labour’s was not. The second difference is that the fund is available to everyone, not just low-income earners. [ Interruption] Well, members can tell how important it is. A much wider range of partners, such as banks and electricity companies, will be helping to deliver the scheme. Most important of all, the Government has set aside the money and has not been engaged in wishful thinking, unlike the previous Government.

ChauvelCharles Chauvel Link to this

Is the Minister concerned that under the current Energy-wise schemes community services card holders have to pay a maximum of $500 to insulate their homes but that under his scheme a community services card holder will have to borrow $1,200 to pay for the cost of an average insulation refit?

BrownleeHon GERRY BROWNLEE Link to this

I am not sure where the member got his figures from—

Hon Members

The Budget!

BrownleeHon GERRY BROWNLEE Link to this

—but my understanding is that currently very few community service card holders actually pay anything. It is our hope that, with the partnership arrangements made available through this scheme, community service card holders, who for both insulation and clean heating can access up to $3,000, will, in fact, have a partner that picks up the balance of that cost.

ChauvelCharles Chauvel Link to this

I seek leave to table the information release from the Minister containing the figures that I cited. [ Interruption]

SmithMr SPEAKER Link to this

This is a point of order. The member will resume his seat. The provisions for tabling documents in this House are to provide information for members that might not otherwise be available to them. The provisions are not for political grandstanding. If the member thinks that a document from the Budget is not available to members of this House, I do not know what is available to them. I make that point. The member has sought leave to table the document. I just want to ascertain exactly what the document is. The member said “information”. What is the document?

ChauvelCharles Chauvel Link to this

The document is the one that the Minister requested in his answer when he asked where I got the figures from. It is his own information release—

SmithMr SPEAKER Link to this

But what is the document?

ChauvelCharles Chauvel Link to this

It is a document sent out by the Minister’s office as a set of questions and answers relating to the insulation scheme.

SmithMr SPEAKER Link to this

Leave is sought to table that document sent out by the Minister’s office. Is there any objection to that? There is no objection.

Document, by leave, laid on the Table of the House.

MallardHon Trevor Mallard Link to this

I raise a point of order, Mr Speaker. The point of order goes to the approach that was taken to the tabling of that document. You are correct that the Standing Orders Committee has looked at this provision and made some recommendations, but it stopped short of making recommendations to the House to change the Standing Orders in this respect. I think there may well be a degree of unanimity around what the approach would be, and that would involve a change to the Standing Orders. But until the time that the committee takes that step, I suggest that it is not appropriate for you to make value judgments or to remind members. We are all now aware of what the Standing Orders Committee said. We are also aware that it chose not to make what it said mandatory. Having you editorialise, I think, is not helpful, and it is actually making members on this side of the House quite unhappy.

BrownleeHon GERRY BROWNLEE Link to this

That is another one of the long diatribes from the Hon Trevor Mallard that is supposed to be helpful. I think I can be more helpful by saying that I promise to read my own press releases.

SmithMr SPEAKER Link to this

I thank the honourable members. I just remind the honourable member Trevor Mallard that, as Speaker of this House, I am entitled to express a view over some of the behaviour in the House. I am concerned when the time of the House is wasted. I take the member’s point; that is why I put the leave that was sought to table the document. I wanted to establish exactly what the document was, though.

FitzsimonsJeanette Fitzsimons Link to this

Is it the Minister’s intention that the 2012-13 appropriation of $78.2 million on top of the existing EnergyWise appropriation of about $27 million be continued in out-years until all the owners of cold, damp homes have had the opportunity to take advantage of that assistance?

BrownleeHon GERRY BROWNLEE Link to this

As the member acknowledges, the Budget projects out as far as it can. That decision will be for another Parliament to make. If I am in a position to, I will certainly be advocating strongly for that.

Lotu-IigaPeseta Sam Lotu-Iiga Link to this

Has the Minister seen any reports about the scheme; if so, what do those reports say?

BrownleeHon GERRY BROWNLEE Link to this

I have seen a large number of very positive reports about the scheme. For example, the New Zealand Nurses Organisation has called the funding “excellent”, the Salvation Army has applauded it, and it has been welcomed by the Council of Trade Unions. The New Zealand Building Industry Federation has said that there will be “immediate gains in employment and activity in the industry”. A number of health professionals have welcomed the initiative because of the savings in health costs, and, more important, the benefits to New Zealanders from living in dry, warm homes.

ChauvelCharles Chauvel Link to this

Given that organisations in areas like Canterbury and the Manawatū-Wanganui area are fully subscribed as to the energy retrofits that they are to undertake, what mechanism will he use to deliver further retrofits in those areas? How will he ensure that any additional capacity is not taken up by shoddy operators?

BrownleeHon GERRY BROWNLEE Link to this

It is of great concern to me that the work that is done is done to a very high quality. The audit process that the Energy Efficiency and Conservation Authority will put in place will need to ensure that quality. Some concerns about existing work have been brought to my attention, and I have made it clear to the Energy Efficiency and Conservation Authority that it is to have stronger audit processes in place. Mrs Fitzsimons, who has been working with me on this project, has been equally insistent in that regard. We will be announcing full details of how the scheme is to work on 18 June. I am sure the member will be satisfied once those announcements have been made as to how the scheme will be delivered.

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