EEH0133

Written evidence submitted by Spencer Cohen, Commercial Manager of EcoSpray-Foam Systems Ltd

We are an insulation contractor offering multiple insulation measures.

I want to point out that although the stress created by this scheme and effect on our revenue and cashflow is catastrophic, it’s minute compared to the deaths our country is suffering due to the pandemic, which I am trying to put into perspective but its difficult when the company has to potentially lay off staff and find funds to cover cashflow due to the mistakes of the initiative.

I am requesting that you implement an urgent solution to keep our industry afloat and help us achieve the goals that this initiative wanted to achieve.

Prior to the GHG launch we have never been involved in funded schemes and never wanted to. Unfortunately once the GHG initiative was launched all of our private/residential clients were offered an amazing opportunity with the GHG initiative, unfortunately for us this literally closed our residential business unless we joined the scheme, thus had no choice but to implement the scheme and recruit additional staff to handle the additional administration and red tape.

In principle the initiative is a great idea but in reality it has failed our business and the industry.

The scheme is now three and a half months old and:

• Revenue has decreased by at least 40%
• Administration and costs have increased by 300%
• For the first time in years the company’s cashflow will be negative.
• We are reviewing cutting our staff by 40%
• The stress because of the scheme is at unbelievable level and extremely worried about all involved.
• Our credibility with customers has never been at such a low point due to mistakes with the GHG communication with customers

THE GHG GRANT INITIATVE HAS AFFECTED OUR BUSINESS MORE THAN COVID

Due to the short timescales available to implement this scheme interim solutions need to urgently be addressed such as:

1. Investigating concerns with the installers prior to emailing clients with untruths and mistakes
2. Installer communication with the administrators at decision level

Or

3. Implement an Installer committee within the GHG team to address concerns regarding the administration of the initiative

4. Financial retentions on jobs completed to assist industry with cash flow

Or

5. Paying within 14 days of lodgement
6. The release of vouchers has increased but not at a sustainable level

The whole concept of improving energy efficiency in the homes is an excellent idea but this initiative is killing industry and unless addressed immediately, I cannot see how companies will survive. Unless we see a drastic improvement we will have no choice but to walk away and initiate redundancies.

I would be please to discuss potential solutions in greater detail if required.

January 2021