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Scrap   6-Star Rating?


Baillieu's about-face on housing

Apr 17, 2012 | Royce Millar and Adam Morton

PREMIER Ted Baillieu, facing growing controversy over his government's environment credentials, has abruptly abandoned a proposal to scrap mandatory energy ratings for new homes in Victoria.

Hours after The Age yesterday revealed a proposal by Treasurer Kim Wells to ditch the 6-star thermal efficiency rules in favour of a voluntary code, Mr Baillieu vowed to retain the existing system.

"The 6-star ratings will stay," he announced to an afternoon media conference.

Some senior government figures appeared to be caught unawares by Mr Baillieu's announcement, and continued telling journalists and others well into the afternoon that no decision had been made on the future of the 6-star code.

It is unclear why Mr Baillieu so quickly backed away from the move. However, yesterday's revelations in The Age sparked heated debate. Some industry groups, affected companies and experts were quick to attack the proposed change.

The Association of Building Sustainability Assessors described the move away from 6-star as ridiculous. "Six star is not 'green tape' but a consumer protection measure which stops people being locked into the pain and cost of having to heat and cool an inefficient home," said acting chief executive, Rodger Hills.

Mr Wells' proposal to replace the mandatory 6-star scheme with a voluntary code was raised in a letter last month to Planning Minister Matthew Guy.

Mr Wells wrote that his request was on behalf of the competitiveness and productivity committee of cabinet - which includes Mr Baillieu - and which was seeking a 25 per cent reduction in red tape.

A Treasury attachment to the Wells letter argued that energy efficiency measures "duplicate" the impact of the carbon price - a claim dismissed by the Gillard government.

Mr Baillieu defended Mr Wells for canvassing ways of cutting costs to taxpayers and business. "The Treasurer has been challenging ministers, as he should, to examine all of their areas of legislation and regulation to see how we can reduce regulation," he said. He offered no further explanation for the backdown.

The move against the 6-star standard had been at odds with Coalition election promise to support the code for new housing and to work to upgrade all existing housing to an average 5-star rating.

The rating system requires energy efficiency for all new homes and major renovations including for the roof, floors, walls and windows. It also sets standards for lighting and, in Victoria, requires the installation of either a solar hot water system or rainwater tank for toilet flushing. All states and territories are now signatories.

Mr Wells' letter drew heavily on a Master Builders Association report from July 2010, which argued that "forcing" people to build houses with higher star ratings may cost more in building resources than it delivers in energy savings.

However, MBA executive director Brian Welch yesterday told The Age that that while the group's preference was for a 5-star standard, it supported mandatory energy ratings. "We have adapted to the regulatory minimum of 6-star. We are working hard to advise and educate our members about how best to accomplish that," Mr Welch said.

The plan to ditch the 6-star standard received a mixed response from from groups across the building, energy and welfare sectors.

Victorian Council of Social Service chief executive Cath Smith said abandoning mandatory energy standards for homes would fly in the face of logic. She said dropping the scheme would have particularly hit low-income tenants, who would face living in poorer standard homes.

"For us it is an absolute no-brainer to have a well-insulated home and to have that regulated," Ms Smith said.

The Housing Industry Association said it opposed mandatory star ratings and would like to see them dropped. Victorian executive director Gil King said the cost of meeting the 6-star level could put owning a home out of reach for some people.

However, Mr King said the 6-star standard should not be scrapped without a suitable alternative put in place.

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