Businesses who lost out when the Rudd government's pink batts program was canned are set to have their day in court in Melbourne as they sue the Commonwealth for damages.
The trial of a class action on behalf of more than 140 installers and manufacturers of home insulation is due to begin on Monday in the Victorian Supreme court.
The 2009 Rudd government set up the Home Insulation Program in a bid to stimulate the economy during the global financial crisis.
But the problematic program was shut down in 2010 following the deaths of four workers in 2009 and 2010.
The class action, brought by ACA Lawyers and McLaughlin & Riordan Solicitors, alleges the businesses in the claim lost about $150 million.
They say the pink batts program was cancelled earlier than expected because of the Commonwealth's failed management of the scheme.
"More than eight years on, many of these companies are still trying to recover from the disastrous program," McLaughlin & Riordan partner Mark Farrell said.
The plaintiffs say businesses took on staff, expanded production and invested in new machinery and other equipment to meet the demand of the program.
So when the program was shut down about a year after it started, many business were forced into liquidation.
"Many invested their life savings to be part of the program only to have the rug pulled out from under them when the HIP was terminated, virtually overnight," ACA Lawyers principal Steven Lewis said.
"Over the course of the failed HIP not only was there tragic loss of life, but hundreds of respected and profitable businesses large and small were left in financial ruin."
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