Friday, July 03, 2009

Brownlee bullshits on bank insulation loans

Last month, the government unveiled the second half of its home-insulation policy: getting banks to waive extra fees on loans for insulation. Unlike me, the government believes this will be effective in getting people to install insulation, and the Minister of Energy Gerry Brownlee stood up in the House and declared

We welcome the support of the banking industry in delivering this important initiative. It will create warmer, drier, and healthier homes for many thousands of New Zealanders.
and
tens of thousands of households will pick up on the scheme and will be delighted that the bank will allow them that extra lending at no additional fee
What basis did he have for making these claims? According to EECA, none at all:
Thank you for your email of 19 June 2009 in which you request, under the Official Information Act 1982 (the Act), information regarding the effectiveness of the Bank Loan Scheme which is part of the Warm Up New Zealand: Heat Smart programme.

Under section 18(e) of the Act, EECA is declining your request because the information you have requested does not exist.

The utilization of the banks was explored because of the opportunity for existing bank mortgage customers to extend their mortgage to cover the costs of their participation in the Warm Up New Zealand: Heat Smart programme. EECA will monitor the uptake and effectiveness of the scheme during the first year of the Warm Up New Zealand: Heat Smart programme.

(Link added)

Its understandable that EECA didn't assess the effectiveness of the scheme - it costs the government nothing, and while it might not help much, it certainly isn't going to do any harm, so there's little point wasting time on it. But it does mean the Minister was simply bullshitting. Which unfortunately seems to be a habit of this government.

(With thanks to EECA,who processed my request in just 10 working days)