The Federal government has announced a $41.2 million program to help workers who were    retrenched after its home insulation was cancelled, as a result of safety issues.

The industry estimates that some 6,000 workers have already been put off.

The Prime Minister, Kevin Rudd, who made the announcement blamed a small proportion of unscrupulous firms in the industry for the trouble.

Four insulation workers have been killed – and more than 100 homes have become fire traps – as a result of shoddy insulation work, performed  under the government’s home insulation scheme.

Some of the sacked workers will be offered financial assistance.

Others will be eligible for retraining.

The issue has dominated question time in Federal parliament all week, with the Opposition demanding the sacking of the Environment Minister, Peter Garrett.

However Mr Rudd struck back at opposition members, who have questioned him aggressively on the matter.

He said the jobs these workers had held would never have existed under a Coalition government.

Mr Rudd said  his government had  initiated the home insulation scheme to create jobs, after the global economic crisis struck.

“There would have been no such program under the Coalition,” the Prime Minister said.

Mr Rudd said any insulation worker, who lost his job, would also be eligible for assistance under the Federal government’s Compact for Retrenched Workers.

This would mean immediate access to high level support.