Former PM Kevin Rudd to take stand in insulation damages trial

A subpoena for the former PM Kevin Rudd has been issued in relation to his government’s home insulation scheme.

Former PM Kevin Rudd attending a breakfast to mark the 10th Anniversary of the National Apology to Australia’s Indigenous People. Picture: Kym Smith

A subpoena for former prime minister Kevin Rudd has been handed out today by Victoria’s Supreme Court in relation to his government’s home insulation scheme, a court has heard.

Justice John Dixon ordered that Mr Rudd give evidence in a civil trial brought about by more than 140 business owners and tradesmen.

The businessmen are suing the Commonwealth for more than $150 million they claim was lost when Mr Rudd’s government cancelled the insulation scheme in 2010.

Justice Dixon has allowed Mr Rudd to give evidence via video link in New York where the former Labor leader is now based. A date for Mr Rudd’s evidence will be set in the coming days.

Rudd could take stand in trial

Former prime minister Kevin Rudd could be called to give evidence at a civil trial involving his government’s home insulation scheme, a court has heard.

More than 140 tradesmen and business owners are suing the commonwealth government for $150 million due to losses incurred when the insulation scheme was suspended in 2010.

A Victorian court heard that Mr Rudd was happy to co-operate and give evidence via video. He would prefer to ­appear in June due to international commitments, the court heard.

The former Labor prime minister is now primarily based in New York, where he leads the Asia Society Policy Institute.

The application to seek leave to subpoena Mr Rudd was made by Jim Delany QC, representing the insulation businesses and manufacturers bringing the class action in the Supreme Court.

The businesses claim the commonwealth had a duty of care because it interfered in the existing market with its Home Insulation Program.

They claim the government caused their businesses to ­expand and invest before the scheme was abruptly suspended.

Rachel Doyle SC, representing the commonwealth, told the court on Wednesday she would not formally oppose the subpoena but wanted Mr Rudd to give evidence before the commonwealth started its case.

“We understand Mr Rudd’s commitments,” she said. “We do not want to be caught on the run in June ... this is a product of the chaotic case being run (by the plaintiff).”

Judge John Dixon is expected to make his decision on whether to subpoena Mr Rudd on Thursday.

The home insulation scheme was launched by the Rudd government in February 2009 as part of a wider stimulus package to ward off the global financial crisis, with insulation intended for 2.2 million homes.

The government was forced to suspend the program a year later after four tradesman in Queensland and NSW died while installing insulation in houses.

A royal commission into the scheme was held in 2013 and Mr Rudd gave evidence in May 2014 where he said the program would have been delayed if ­cabinet had been warned of the safety risks, and accepted ultimate responsibility.

The royal commission led by Ian Hanger found seven significant failings into its design and implementation.

The Abbott government set up a compensation fund in 2015 for home insulation companies that lost money as a result of the Labor scheme’s cancellation.

The trial continues.