Hi Sally,
I may be able to throw some light on the building consent for a permit for insulating walls. Its about building wall strength and a new technique known as keyhole retrofitting. It involves, as you can image, cutting out parts of the gib (on a 45 degree angle), inserting the insulation, then reglueing the gib pieces in place, re-plastering etc. While its not cheap, it is much cheaper than taking off all the gib and avoids the almost inevitable problems of splitting timber such as skirting boards while trying to remove them.
When I saw this technique about three years ago I wondered if it was the silver bullet for wall insulation. However, gib sheets contribute to the structural integrity of the building and one with a number of keyholes – even though replastered and invisible – will have lost that strength. I understand this technique was developed by a Lower Hutt company which would be why Wellington city had to move against it. I am not sure it is still offered. So in a way perhaps a shame, and the search for the silver bullet goes on.Cheers, Norman