More than two million homes will be given free ceiling insulation as part of the Federal Government’s next stimulus package in a bid create jobs and boost growth in the green economy.
The Government claims the insulation will also reduce electricity bills in about 2.7 million homes by $200 a year. Investment property owners will also receive benefits from the package, with rebates for 500,000 properties doubling from $500 to $1000.
The package, which is expected to be announced in Federal Parliament today, should provide thousands of jobs for the construction industry. The plan is also expected to help reduce carbon emissions by 49.4 million tonnes by 2020 – the equivalent of removing one million cars from the roads.
Ron Silberberg, managing director of the Housing Industry Association, says the package will also benefit Australian manufacturers of insulation products.
“As for manufacturers in Australia, you have a number of firms that supply and fix insulation products, you have retail outlets, hardware stores that carry insulation products. They will all experience benefits as well.”
Silberberg also says the package will both create jobs for low-skilled workers and help to reduce greenhouse gas emissions.
“It will also provide savings in energy for householders, and is a good step in advance of the introduction of the emissions scheme scheduled for 2010, which will increase energy costs.”
The package comes as Prime Minister Kevin Rudd announced yesterday the global downturn will blow a $115 billion hole in the budget over the next four years, and a budget deficit is now inevitable.
“The impact of the global recession and the impact of the halving of China's economic growth will cost the Australian budget some $115 billion dollars, resulting in a temporary deficit,” Rudd said.
He also says while a deficit is not desirable, the Government must act now to boost the economy “or the problem that we face now would be even much worse; that is the bottom line”.
The Government has not announced the size of the deficit, but Rudd says an exact figure is expected to be released “very soon” along with details of the second stimulus package.
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