Gerry Brownlee. Pic: NZPA

Wellington, July 2 NZPA - Energy Minister Gerry Brownlee today defended the inclusion of non-community card holders in the Government's $323 million home insulation fund, saying many had "significant" needs.

Mr Brownlee, appearing before Parliament's commerce committee, was questioned over whether enough priority was being placed on low-income households.

"How are you trying to attract the people, I suppose, with the greatest need in this area to access the scheme," Labour MP Clare Curran asked.

"Do you believe that low-income households should be a priority in accessing this fund?"

Mr Brownlee said it was expected that 15,000 low-income households would access the scheme in the coming year, giving them both clean heat and insulation.

A further 9000 non-community card holders would be "getting the same treatment".

Among the latter were a couple he visited yesterday, whose house was among the first nationwide to be retrofitted under the scheme.

They bought a "doer-upper" house in Lower Hutt in February and had a baby last week.

"When you say greatest need -- I only had to look at that little baby to know that this was a good thing," he said.

"They are not in a position to be community service cardholders. I imagine that they have to work hard to meet their mortgage payments, to do everything.

"So even though there are people who are outside of community service card status who are going to get assistance here, I wouldn't rule out the fact that they have significant needs as well."

Mr Brownlee predicted private landlords would also take the chance to improve properties as they would be eligible for a 60 percent grant if their tenants were community service card holders, and the balance would be tax deductible.

The scheme is being run by the Energy Efficiency and Conservation Authority and aims to subsidise the insulation of 180,000 pre-2000 houses by 2013.

It will pay 33 percent of the cost of insulating floors and ceilings, but not walls, up to a maximum of $1300.