NSW: Insulation plan to stave of recession: reports
03 Feb 2009 1:43 AM
SYDNEY, Feb 3 AAP - More than two million homes will qualify for free ceiling insulation in a federal government plan to stimulate the economy by creating green jobs.
As part of a commonwealth stimulus package expected to be announced on Tuesday, 2.2 million owner-occupiers will be eligible for the free insulation, News Limited and Fairfax newspapers reported.
The subsidy for owners of 500,000 rental properties will also jump from $500 to $1000.
The insulation program will slash electricity bills in 2.7 million households by about $200 a year, while also tackling green house gas emissions, government sources told The Australian.
The government will argue that this will help save the jobs of tradesmen in the construction sector and reduce emissions by about 49.4 million tonnes by 2020, equal to taking a million cars off the road, Fairfax reported.
Australia's worsening financial position forced Prime Minister Kevin Rudd on Monday to concede that another stimulus package would be needed to stave of a recession.
Mr Rudd said a deepening global recession and a halving of economic growth in China will cut a hefty $115 billion off tax revenues over the next four years and that the budget will have to go into a temporary deficit.
