Budget to include home insulation package

Print

Tue, 26 May 2009 12:00a.m.

Thursday's budget is going to give many homeowners a warm glow. In amongst the grim detail of recession, debt and rising jobless, there will be a home insulation package available to all private homeowners.

It will be in the form of a subsidy - with no income testing. Everyone will qualify and it won't ever have to be paid back.

National is targeting up to 900,000 homeowners, each will be offered up to $1,500 as a subsidy to insulate their house.

And everyone is eligible as long as their house was built before the year 2000.

It is understood that it will cost National between $300 million and $330 million over a period of four years.

National intends spending more than a billion dollars on the subsidies over the next 10 years insulating private homes.

And if you can't afford it, the Government has come up with a new way to help.

Once you take the subsidy, you will be able to pay the balance off through your quarterly rates bill over time or through your monthly power bill.

It is understood the Government is also negotiating with the banks for mortgage extensions, as a way of paying for the upgrades.

Energy Minister Gerry Brownlee has been working with the Greens in designing the package.

"We've had very good discussions with the Greens and Jeanette Fitzsimons," Mr Brownlee says. "We're very confident it will look very good."

Already state houses are starting to receive insulation upgrades, But National's scheme is different. It is exclusively for those who own their own homes.

"The Government will help many more New Zealanders stay warm and dry and healthy and there'll be more jobs in the building and construction industry," Prime Minister John Key says.

The insulation programme will be one of the centre piece announcements on Thursday, but Bill English warns not to expect too much.

"There won't be anyone finding a lot of money in their bank accounts after the this budget," Mr English says.

So it looks likely that the budget will be just enough to warm your home during a chilly recession - but not much more.

3 News

Become a fan of 3 News on Facebook and on Twitter.

Post a Comment

Before commenting, please take the time to read our moderation guide


(Won't be published)



Comments

27 May 2009 10:41a.m.

Jim wrote:

Guy, I recall that under Labour they were talking about it but there was no free subsidy and that was while Cullen was arrogantly waving his $10billion surplus around for us all to say what a good boy you are (it was never there the lying Cullen).
As I said in the other post relating to this subject "Well done the Greenies"

27 May 2009 10:31a.m.

dan wrote:

Lets hope this proposal comes through as my house really needs it.

27 May 2009 07:26a.m.

Guy wrote:

I'm also guessing you've all forgotten Labour had an insulation package much more comprehensive than this one, and it was canned.

27 May 2009 05:06a.m.

Guy wrote:

Nicky: Landlords don't do what they don't have to. It took my last landlord three months to fix a blocked pipe that was messing with our entire water system. A previous one refused to install security after they let a drug dealer move in upstairs. Repeat: landlords don't do jack they don't have to.

It's great the govt is latching onto another party's policy (the Greens), but have of course twisted it to screw over those who really need it.

26 May 2009 10:58p.m.

Peter wrote:

I did Guy, the article alludes to what is thought to be in the budget, it is not a pre budget announcement of what is actually in it. The devil is in the details as they say, details which have not been released.

26 May 2009 10:50p.m.

anneisha wrote:

you just burst 900,000 peoples dreams by saying at the start of the artical that it didnt have 2 be paid back in any way and now your sayin that it has 2 come out of our pockets thanks 4 the dissapiontment aye,who ever wrote the artical i hope your hapi u just burst my BUBBLE!

26 May 2009 08:54p.m.

nicky wrote:

Landlords can already get a subsidy for their rental properties. http://www.energywise.govt.nz/funding-available/insulation-and-clean-heating

"Landlords with low-income tenants can access funding to improve their rental properties with insulation and clean and efficient heating"

"Also middle (earning less than $100,000 for two earners, before tax)and low income home owners can" The new scheme is an extension of the existing one. GReat stuff! My house is freezing!! It will be good to be able to pay the rest off through the power bill or rates rather than taking a personal loan or trying to save for it.

26 May 2009 08:26p.m.

Chris wrote:

I think this is fantastic. I think the lack of income testing is appropriate. There are 2 main reasons why you'd income test (other than to save govt money): (1) the wealthy should do it anyway, and (2) you're giving money to some people that'd do it anyway.

However, anyone who is wealthy enough but hasn't done it, then they clearly need a kick up the bum, and this might do it. And for those who were doing it anyway, the 'transfer' can be seen as just an economic stimulus -- money to be consumed elsewhere, which in these times isn't bad.

Finally, regarding the fact it's exclusively targeted at those who own their own homes, landlords should be doing this anyway, and should be regulated to do so. Why not? They're in it for a commercial gain. If they can't hack that, they should sell up and move on.

26 May 2009 07:52p.m.

Carla wrote:

Great news for a lot of people but you are right people renting might still be in the cold. I sell house lots of insulation directly to home-owners and tennants around the country at NZ's cheapest prices. I am finding tenants are buying it and taking it with them as they go. It makes sense especially for ceiling insulation which is getting a lot cheaper. A 100m2 of Branz tested fibreglass R2.2 ceiling insulation can be purchased for as low as $600 and will normally pay for itself within 2 years. You can buy it by the bale if need be and delivery could be free. Best of all you take it with you when you leave - it lasts for over 50 years. Yes it might take day and you might get a bit dusty but well worth your while if you don't move every year...even for tenants. Please call me to find out more on o8oo 2o6 2879. Thanks Carla

26 May 2009 07:30p.m.

Jenny wrote:

I agree with the last 2 people. Guy, your comments are well off. National looking after it's own?? National has often in the past been seen as being in alignment with the rich & big business people. What about those of us who don't fit into those 2 categories, but do have a mortgage? I have a mortgage on my own, I'm not rolling in money, & I could certainly do with a subsidy to get insulation in my house as I have NO insulation anywhere in it. So Guy, stop being so 'Us & Them'. Just because some are very fortunate to have a mortgage, & the limitations & fears that brings, there's no need to trash them.