Fresh claims over insulation

The federal Government in Australia is set to order a high-level investigation amid new claims its botched home insulation scheme was rorted by operators possibly linked to organised crime.

Frontbencher Greg Combet, who is in charge of cleaning up the insulation mess, has written to the federal auditor-general pressing for a full, fast-tracked audit.

The insulation scheme was canned after it was linked to the deaths of four installers, at least 93 house fires, and safety and quality problems potentially affecting hundreds of thousands of homes.

The federal Opposition says a new problem has emerged. It alleges dodgy operators claimed the Government's rebate of up to A$1600 ($2010) a roof without installing any insulation.

Opposition climate spokesman Greg Hunt raised the possibility of criminal fraud and an organised crime link.