Four deaths and 93 house fires across Australia have been linked to the scheme.

Environment minister Peter Garrett said inspectors would audit homes estimated to cost millions.

On Tuesday the five Port Lincoln men, employed by South Australian business Insulation Matters, were angry at the government but understood the position their employer was in.

One displaced employee, Jayed Freeman said he had a family to support and was now out of a job.

"Three of us have got kids to support," Mr Freeman said.

"We're pretty disappointed and it happened so suddenly.

"I'll be straight down to Centrelink until I can get a new job."

Insulation Matters owner Lutz Mueller said he was sad he had to let his staff go, especially when they had all just finished their training.

"These guys are hard workers and a good team which is hard to find.

"It takes so much to hire and then we have to let them go, it's sad."

But Mr Mueller, who has branches of the business in Port Lincoln and Moonta, said he had no choice due to the axed rebate scheme. He also let go 21 staff in Moonta.

"This is a direct result of the government cancelling the package ... which was supposed to continue until December 31, 2011.

"I have got over 300 pending installs with many of them along the West Coast; these people unfortunately have to wait now."

Mr Mueller said he had heard the government would re-introduce the package in June.

"But basically he has crippled the industry for three months.

"Why would you buy insulation off me today for $1400 when in June you can buy it for $400."

Mr Mueller said there was no warning from the government and it was disappointing some operators had been doing the wrong thing.

"There are a lot of us (installers) who are doing the right thing and were in operation before the package came in but it was the way the government set the package up to allow all this to happen ... the system was so open to rorting."

Mr Mueller said he would hire every one of his staff back in three months if they were still available.