Mary from Bribie Island is a polite lady, so when she got a letter addressed to Daphne Weatherby, she didn’t consider opening it. She wrote “return to sender” on the official-looking envelope and planned to drop it back to the post office.

Out driving, she tuned into her radio – and heard another man tell me he had received a letter from the Federal Government asking whether he was happy with the installation of his insulation.

Having never had it installed he was confused, and Mary heard his confusion turn to anger when he told how he was dismissed as not knowing what was in his roof when he alerted the relevant authorities.

Mary went home and looked at the envelope again, opened it, and found out her house had also been used by some unscrupulous installation company to claim $1,600 for a job that was never conducted.

She told her neighbour. She had a letter too – another fraud case. And then on the Gold Coast, another one popped up. And so it goes.

Mary is more concerned about her privacy than fraud; she worries that someone has used her address. Others are worried that the Federal Government’s hotline has taken privacy in the other direction – refusing to reveal the name of the company alleging they did work on their homes.

Those cases are just the tip of an iceberg that could up-end attempts by the new assistant energy minister, Greg Combet, to sink the debacle that has demoted Peter Garrett and raised questions about the Government’s ability to deliver on programs.

Combet’s approach has been to get out and sell his plan to either rip the foil out, or install safety switches, in 50,000 homes, and to check a further 150,000.

He wants to be seen on the front foot, and talkback – always a good barometer of public opinion – shows listeners largely believe his vow to get to the bottom of the mess, and not cover it up further.

But with 42,500 of the 50,000 homes in Queensland, the litany of revelations that followed his vow shows the depth of the problem Combet, and his Government, still face.

Just take these examples revealed by talkback callers.

Master Electricians has recorded 20 cases of installers offering to sell lists of names to Queensland electricians, so they could then cold call, offering safety checks.

The Queensland Workplace Rights Ombudsman has initiated seven investigations over serious non-payment of wages by installation companies, that mushroomed overnight, and disappeared quickly afterwards. In one case, a father revealed how his son had worked for six months, and not received a cent.

Reputable installers have been thrown in with the bad; some are owed more than $100,000 from the Government, which isn’t providing any indication when they’ll be paid. Some have no choice, but to sack workers.

Some who have already had someone crawl into their roof, or done it themselves, have been shocked. In some cases, there’s hardly any insulation, in other cases it’s ripped, in other cases, it hasn’t been put where it should.

Others paid hundreds of dollars on top of the $1,600 rebate, because of the size of their roof. Remember, this is under a federal government-funded and encouraged scheme. Now they are having it ripped out – and being left hundreds of dollars out of pocket.

At least two people have had insulation installed, but when they called the hotline, there is no record anywhere of installers having been at their home. As one of them explained, if there’s no record of any insulation being put in, how can he now have it checked?

One listener has been told the Government will pay up to $400 for an electrician to check their home, plus the reimbursement of a safety switch. Another has been told the $400 must include the safety switch. And confusion remains over whether the Government will fund the installation of a second round of insulation, once the foil has been ripped out.

In at least two cases, ceilings have started to crack after a visit from insulation staff. Wayne noticed warps soon after installers crawled around his roof. He tried to contact the company but couldn’t. Last Friday, a big crack appeared. On Monday, the ceiling collapsed. The only people, he says, who had been in his roof are the installers and the company is not interested in his concerns.

Combet, acutely aware that four installers have lost their lives and more than 100 fires are being blamed on the government plan, has shown he’s happy to be exposed to the full extent of the problem, and to work towards fixing it.

But is it possible to gauge the level of fraud when people are unaware they have been targeted? How many homes have so far been used in fictitious claims?

How long will it take electricians to check 42,500 homes in one state and how do residents decide whether to rip out the foil, or install safety switches?

How do people find out whether their insulation has been installed correctly?

When are reputable companies, now shedding staff, going to receive owed monies?

How is the Government going to track down those companies, now disbanded, which employed staff, but didn’t pay them?

Where did thousands of people stand who signed a contract, to have the insulation installed, but required a signature isolating the Government from any legal liability?

What is going to happen to the stockpile of insulation products sitting in factories in Queensland? Electricity safety officers already hold concerns they will be sold at discounted prices, outside the federal scheme.

Combet says details of how the mangled program will be fixed are still being nutted out. But Queenslanders, who have been doubly affected because the end of the federal scheme meant the end of a parallel state scheme offering solar hot water rebates, are fed up.

This was a program that showcased the Government’s commitment to the environment, while helping working families to improve their lot.

On any objective assessment, it’s failed. And Kevin Rudd’s home state wants it fixed, before they’re ordered off to the polls later this year.

Madonna King presents Mornings each weekday from 8.30am on 612 ABC Brisbane.