[6] The Royal Commission inquired into and reported on the deaths, serious injuries and impacts on longstanding home insulation businesses alleged to have arisen from the Program.
The Package and Program were established in the context of the First Rudd Government's use of expansionary fiscal policies at their discretion to counter the effects of the financial crisis of 2007–2008.
As the program was delivered into communities, four males (aged 16 to 25 years)[1] who worked as home insulation installers, died in four separate incidents between October 2009 and February 2010.
[12] In March 2010 the Federal Government announced a proposal to remove foil insulation or make it safe from 50,000 houses and undertake another 150,000 inspections.
[13] In March 2011, 35 search warrants were executed targeting alleged fraud by businesses and individuals in New South Wales, Queensland and Victoria.
Climate Change and Energy Efficiency Minister, Greg Combet, stated that the Government would pursue those alleged unscrupulous operators who had fraudulently abused this program.
McPhee also reported the department underestimated the level of risk involved in an unregulated industry which used inexperienced workers to install insulation in ceiling spaces.
In his report, McPhee stated that as problems mounted, the then minister, Garrett, did not have his requests for information answered promptly and then, when it was provided, it was "overly optimistic" and contained factual errors.
He gave verbal and written evidence before the Royal Commission that two senior Environment Department officials told him safety was not a concern and that the Program had been poorly costed.
"This is a worrying situation as it appears that the predominant attitude in the insulation industry is to work with no regards whatever for height or materials handling safety.
"(I was told) the costings were drawn up on the back of a napkin by some senior Labor Party politician ... and the head of the bulk (insulation) industry association.
"Appearing before the Royal Commission on 13 and 14 May 2014, Mark Abib testified that it was up to public servants to tell him and other politicians of the potentially lethal problems in the program.
[35] Rudd's counsel, Bret Walker SC said his client could not tell his side of the story while being met with a "devastating truncation of the truth".
[38][39] He also gave evidence that the stimulus package had a colour-coding system: "green for 'on track'; amber for maintaining 'close watch'; and red for 'in difficulty'."
"The program was operating until its conclusion ... with more than one million homes, with more than 10,000 employees ... and the position was to take advice from the portfolio minister responsible (Mr Garrett) and the public service advising me.
"On 16 May, Greg Combet appeared before the Royal Commission and testified that the program had problems from the start, claiming "flaws in the design of it" and that the risks were ongoing.
"[44] Ruben Barnes' sister, Sunny gave evidence that as the result of her brother's death, the formerly close-knit family had broken down.