NSW Government Set Aside $280 Million for Mr Fluffy Buybacks

The New South Wales government plans to set aside almost $280 million for a voluntary buyback scheme for homes containing loose-fill asbestos. It is believed there are as many as 511 homes in NSW built by the Mr Fluffy company which used loose-fill asbestos type roofing insulation during the 1960s and 70s. Asbestos fibre is the most prominent cause of mesothelioma - the aggressive lung cancer.

The Government buyback scheme will do more than a similar scheme proposed by the ACT government. The NSW scheme gives homeowners the option to demolish their homes and rebuild on their own land or to also sell the land. There will be a task force established to oversee the scheme.

Both the buyback scheme and the task force were recommendations from the NSW parliamentary inquiry into loose-fill insulation, with the final report issued in December. The report also recommends that the government offer compensation for immediate costs incurred for Mr Fluffy homeowners, and also that they introduce mandatory testing of houses in identified areas built before the 1980s. Furthermore, the report recommended the establishment of a public registry and identification of affected properties to warn tradesmen to be cautious, and a $10,000 relocation fee per affected household and an additional $850 for counselling services.

The NSW government plans to taken on board all 13 recommendations made in the report, however this has been an easier problem to deal with in NSW. A spokesman for the ACT government said:

“While NSW have been able to offer homeowners the option of an assisted demolition, this wasn’t a viable option for the ACT government due to the scale of the problem. The ACT has had to take a $1bn loan from the Commonwealth for the program, which is a fifth of our entire budget.”

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