The outgoing chief executive of Australasia's largest building materials company, Fletcher Building, has criticised the federal government for not compensating industry for the failed Home Insulation Program (HIP).
In an exclusive report in the Australian newspaper today, Fletcher Building CEO, Jonathon Ling said industry is still battling excess stock levels with plants running significantly below capacity three years after the program collapsed leaving industry hundreds of millions of dollars out of pocket.
Ling said it cost Fletcher Building $144 million in writedowns, restructuring, lost stock and closed factories.
"The government has spent $2.5 billion. If you count the losses in industry, it is losses of over $3 billion for no gain," Ling said.
"It is just outrageous. And that they are not willing to compensate the companies for what they did is also outrageous."
Fletcher, CSR, Knauf and a range of small businesses have sought tens of millions of dollars in compensation from the federal government on the grounds that the administration of the HIP was defective.
The government has not responded to the claims.
The HIP was established in 2009 to provide rebates for the insulation of 2.7 million homes.
