Business warms to insulation idea

The National Government's home insulation package has been given the thumbs-up by business leaders.

The $323 million "Warm Up New Zealand: Heat Smart" programme began on July 1, offering homeowners a 33 per cent subsidy on floor and ceiling insulation and a $500 grant for a clean heating source, regardless of their income. Almost 70 per cent of chief executives surveyed for Mood of the Boardroom said they approved of the package.

"It looks to me like it's win, win, win," says John Barnett, chief executive of South Pacific Pictures.

"It will improve the housing stock, environmentally it works, and because the jobs are household-size, local tradesmen will get employed."

Vector chief executive Simon Mackenzie adds to the list the quality of life and health benefits.

However Vector would like to see other solutions in the mix - such as smart meters and other energy efficient devices.

"We have to really make sure that these packages are tightly co-ordinated, as opposed to being one solution and then another coming in later."

The Business Roundtable takes a theoretical view.

Executive director Roger Kerr says the economic case justifying the expenditure has not been presented publicly.

He says if market-based instruments like an emissions trading scheme or carbon tax are introduced, it affects prices in the economy, and people make decisions about energy efficiency accordingly.

"You shouldn't try to layer on top of that regulatory interventions like ... a home insulation scheme."