Insulation businesses line up for compo

INSULATION businesses annihilated by the Federal Government's rebate scheme are still waiting for help more than three years later.

Rick Palfrey said he was one of dozens of business people yet to receive a response to applications made to the Compensation for Detriment caused by Defective Administration scheme.

His once-thriving insulation business, Ritetemp, has stopped operating since the government ceased its home insulation rebate.

"It's completely smothered the industry," he said.

"It's been a long, slow death."

Mr Palfrey said he could name eight other businesses that had disappeared.

"There were pages of us and some companies had big full-page ads and other had half-pages. Now there's less than a column on one page," he said.

Mr Palfrey, who bought the 16-year-old business before the introduction of the rebate, said the government had caused an artificial boom then bust.

"It all just collapsed when the government stepped in with $1.5 billion. In two months, that was like the next 25 years work," he said.

Mr Palfrey stepped up his business to cope with the rebate-induced demand for insulation and then lost out when the government cancelled the scheme.

He got 15 cents in the dollar for $280,000 of stock he had on the floor, which he had to sell because he could no longer afford the rent on the sheds

Mr Palfrey said the LNP had been sympathetic and he hoped to see progress in compensation if the Coalition won government.

Topics:  insulation scheme pink batts small business

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