Failure of Home Insulation Program in Australia

Introduction
• Australia had been facing various impacts of the global
financial crisis
• Crisis had resulted in a period of worldwide economic
downturn.
• Objective was to improve the energy efficiency of 2.7
million Australian homes and reduce greenhouse gas
emissions (Aven and Renn 2010)
• Installing insulation at homes was considered the most
cost‐effective opportunity for improving residential energy
efficiency.

Reasons for failure of HIP
• Examination was undertaken by Dr. Alan Hawke and was
completed on 6th April 2010.
• Identified problems in program governance, program design
and administration, risk management, audit and compliance
mechanisms and capacity issues.
• There have been cases of potential fraud identified
• there were a number of contributing factors that impacted on
the successful implementation of Phase 2 of the program

HIP control systems
• The Government has committed to industry assistance
programs expected to total approximately $56 million
• HIP’s budget would be used for activities undertaken post‐
closure of the program (Tah and Carr 2001)
• The design of Phase 2 was strongly influenced by the clear
riding instruction from the Commonwealth Coordinator‐
General