Media release

Friday 6 May 2016

MBIE to consult on proposed foil insulation ban

The Ministry of Business, Innovation and Employment has announced it is beginning consultation on a proposal to issue a ban that will prevent people retrofitting residential buildings with foil insulation.

MBIE manager of determinations and assurance John Gardiner says the proposed ban follows safety concerns raised by submitters during consultation on the regulations needed to implement changes to the Residential Tenancies Act (RTA) requiring insulation and smoke alarms in rental properties.

“The risk with retrofitting this form of insulation occurs when the foil becomes live, for example from accidental stapling into wiring, and has resulted in deaths in New Zealand and Australia,” Mr Gardiner says.

In conjunction with the ban, the RTA regulations will also not allow foil insulation to be retrofitted in rental properties. MBIE estimate that 180,000 rental properties will need to be retrofitted with insulation by 1 July 2019 in order to comply with the new regulations.

“The ban would relate to foil installation in existing residential buildings only – not to new builds where electrical wiring has not typically been installed before foil insulation is fitted.

“The ban is proposed to be enacted by 1 July 2016, when the amended RTA is intended to come into force.

“For new buildings, MBIE is working on changing its Building Code Acceptable Solution H1/AS1, to remove the use of foil insulation. This proposed change will be consulted on in July,” Mr Gardiner says.

As the RTA regulations will require landlords to assess the extent of insulation in their properties when new tenancy agreements are signed after 1 July 2016, we expect landlords and tenants will be checking their insulation.

This could pose electrocution risks if foil insulation has been incorrectly installed, due to its ability to conduct electricity and become ‘live’.

The proposed ban is contained in one of three consultation documents related to insulation that are being released today.

WorkSafe NZ’s Energy Safety team is setting out proposed good practice on how to work safely around foil insulation, which will be available by 1 July. It is also opening consultation on the good practice guidance today.

Anyone wanting information about how to work around foil insulation in the meantime should consult the proposed good practice guidance material.

The new RTA regulations will also require landlords to install insulation in accordance with the insulation standard NZS 4246. Standards NZ is currently revising this standard and is today also commencing its final public consultation round on it.

Click here for the MBIE consultation document on the proposed ban on the use of foil in existing residential buildings which is out for consultation until 24 May.

Click here for the WorkSafe – Energy Safety consultation document on electrical safety guidance which is out for public consultation until 27 May.

Click here for the draft of NZS 4246:2016 Energy efficiency – installing bulk thermal insulation in residential buildingswhich is out for public consultation until 3 June.

ENDS

Frequently Asked Questions

What are the proposed changes to the Residential Tenancies Act?

The changes would require that from 1 July 2016:

• all rental properties have smoke alarms

• all new tenancy agreements include a statement of the extent and safety of insulation in the property

• any replacement or installation of insulation in a rental property meets the required standard

• all social houses where the tenant pays an Income Related Rent has underfloor and ceiling insulation meeting the required standard where it can be practically installed.

From 1 July 2019:

• all rental properties have underfloor and ceiling insulation meeting the required standard where it can practically be installed.

• For further information on the RTA changes click here.

What is foil insulation?

Foil, in the form of sheeting, is commonly used in buildings as a type of insulating material. The sheets have a thin layer of reflective foil (usually aluminium) on one or both sides. It may also be supplied in panel form where it is bonded to plasterboard or various bulk blanket insulation materials such as fibreglass, polystyrene or wool.

It used to be one of the most commonly used underfloor insulation materials in New Zealand, although its use, particularly in retrofits, has declined in recent years as a range of products that more clearly meet the durability and performance requirements of the Building Code have come on the market. It is not commonly used in ceiling spaces as it is not very effective as ceiling insulation in our climate.

Has it been used in government insulation schemes?

Foil has not been used as part of Warm Up New Zealand: Heat Smart (started in 2009) or Warm Up New Zealand Healthy Homes (2013). Foil was used in some smaller programmes run by EECA before 2009.

How many people have died installing foil insulation?

In 2005 a professional insulation installer died after being electrocuted while installing foil insulation underneath the floor of an existing building. In 2007 a further three homeowners died after being electrocuted while installing foil insulation. In 2008, a homeowner received a fatal electric shock when he came into contact with live conductive foil that lined the walls of a room constructed inside a garden shed.

In Australia four installers working on a home insulation programme died in 2009-10, with a Royal Commission report finding the use of foil insulation directly contributed to several of those deaths.

Why is a ban only being proposed now?

Following these fatalities regulators, including MBIE (then the Department of Building and Housing) issued guidance, about the hazards of installing foil insulation. Regulators also made contact with several suppliers of conductive foil products to discuss the issue and they agreed to begin including safety warnings with their products.

There have been no subsequent deaths, but the RTA changes are expected to require about 180,000 properties to be insulated by July 2019. As submissions on the RTA regulations noted, this will result in much more widespread insulation activity over the next few years - which could increase the use of foil insulation and therefore the chance of injury or fatalities.

Under what legislation is a ban issued?

Section 26 of the Building Act allows the Chief Executive of MBIE to issue a warning about, or ban the use of, a building method or product if he/she considers on reasonable grounds that the use of that building method or product has resulted in, or is likely to result in, a building or building work failing to comply with the Building Code[1]. This would be the first time that a ban has been issued under the Building Act.

What is the consequence of breaching the Ban and who enforces the Ban?

Breaches of a Ban are an offence could result in a fine of up to $200,000. Territorial Authorities will be most likely to come across the use of banned products and will primarily enforce the ban, but in some instances MBIE may take prosecutions under the Building Act.

How long would the Ban last?

That is not known at this stage but likely to be indefinitely.

How do I know if what I am doing is covered by the Ban?

The Ministry will publish information on its web site, once a Ban is in place, giving information on how to identify the banned method.

I have foil insulation in my house – do I need to check it’s not posing a safety risk?

There is no legal requirement to check if foil is ‘live’, but if you have concerns about the quality of the foil insulation or the electrical cables underfloor then you should get an electrician to test the electrical safety.

What should I do when working near foil insulation?

Ensure all power is switched off at the main switchboard before you start any work. You always need to be careful when accessing a confined space where there is any electrical wiring, appliances or electrical cabling present.

Wiring could be old, hidden, or damaged, or metallic staples may have been incorrectly used when fixing conductive foil. The draft Electrical Code of Practice sets out good practices on how to work safely with installing new, and working with fitted foil insulation.

[1] The New Zealand Building Code is contained in regulations under the Building Act 2004. It prescribes functional requirements for buildings and the performance criteria which buildings must comply with in their intended use.

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