Mark Dreyfus MP

Member for Isaacs
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Release of Green Loans ANAO report

29 September 2010

Greg Combet, Minister for Climate Change and Energy Efficiency, today welcomed the release of the
Auditor General’s report into the Government’s Green Loans program and accepted the report’s
findings.

THE HON GREG COMBET AM MP
Minister for Climate Change and Energy Efficiency

THE HON MARK DREYFUS QC MP
Cabinet Secretary, Parliamentary Secretary for Climate Change and Energy Efficiency

Release of Green Loans ANAO report

Greg Combet, Minister for Climate Change and Energy Efficiency, today welcomed the release of the
Auditor General’s report into the Government’s Green Loans program and accepted the report’s
findings.

“The Australian National Audit Office (ANAO) report identified significant failings in the initial design
and implementation of the program, particularly in relation to poor governance processes, within
the Department of Environment, Water, Heritage and the Arts at the time the program was
initiated,” said Mr Combet.

“The report provides an overview of the issues that confronted the design and delivery of this
complex program, and is focused mainly on these historical issues.”

The report’s findings are consistent with other reviews on the program released this year, including
the review undertaken by Ms Patricia Faulkner AO.

“The ANAO report has reinforced the significant problems experienced in the management and
administration of the Green Loans program.”

“The Government is using the lessons identified in these reviews to remediate legacy issues within
the program. Significant progress is being made”.

Mr Combet noted that in relation to the former Minister for Environment, Water, Heritage and the
Arts, Peter Garrett that the ANAO Report found that:

“In addition, the former Minister received incomplete, inaccurate and untimely briefings on program
design features and implementation progress, challenges and risks.”

The report further stated:

"The former Minister was not served well by his Department in this respect....due to the poor quality
briefings he received."

Over the past year, the Government has been working to improve the legacy issues associated with
the Green Loans Program, including those identified in the ANAO report.

In recognition of issues in the delivery of the Green Loans Program the Government introduced
changes in February this year designed to provide additional household sustainability assessments,
introduce a cap of 5000 assessors and the number of assessments that could be booked, and to
discontinue the loans component of the program.

The administration of the program was transferred from the Department of the Environment,
Water, Heritage and the Arts to the Department of Climate Change and Energy Efficiency on 26
February 2010.

Following continuing problems with the program the Government took the decision to phase out the
program on 8 July 2010.

“To address the issues that arose the Department of Climate Change and Energy Efficiency has
developed a governance and program support structure to assist with program design,
implementation and monitoring.”

“Risk management plans, risk mitigation and compliance strategies consistent with agreed
Departmental frameworks are already in place or are being developed for all programs administered
by the Department.”

“Independent quality assurance of risk management plans is also being undertaken.”

“In addition, my Department engaged Mr Anthony Blunn AO to examine and report on the adequacy
of the response of the Department to the Faulkner Inquiry into the Green Loans Program as well as
the Hawke Report into the Home Insulation Program.”

“Given the serious nature of the report’s findings I am asking Mark Dreyfus, Parliamentary Secretary
for Energy Efficiency, to assume responsibility for overseeing all existing and future energy efficiency
programs to ensure we prevent any future failings.”

“Mr Dreyfus brings to this role considerable experience and intellect and will work hard with me
and the Department to ensure that risks are properly mitigated in the delivery of our suite of energy
efficiency programs”, Mr Combet said.

WEDNESDAY, 29 SEPTEMBER 2010