Gearbox tunnel cover

I removed the gearbox tunnel cover to get at the reversing light switch since the lights were not working. It turned out the at sometime in the past, prior to my ownership of the car, the switch had shorted out and the wiring burnt. I surmise that this was because some oil got on the switch terminals. The reversing switch has exposed terminals as you get see it this photo:
image
Here is a photo of the switch in position on the gearbox:-


When I removed the cover I found that foam rubber insulation was impregnated with oil which seemed to be coming from where the speedo cable attaches to the angle drive. Here is a photo of the underside of the cover showing the foam insulation:-

I can replace the reversing light switch with one that has spade terminals to which I can fit insulated female connectors and use the old foam. But I wondered whether any of you had replaced this foam and if so what with?
Another question I have is that the cover is sealed using a non setting, sticky putty which I believe is called Plasticote. Can anyone suggest a substitute for this?
I presume the foam insulation is to reduce noise rather than prevent heat getting into the passenger compartment. I am wondering whether to ditch this foam and use just a heat shield like you can buy to put on the passenger compartment floor.
Any advice would be most appreciated

The farm is there for both, but it is largely there to insulate from heat. You can either wash it out in something like lacquer thinner or outside, in gasoline, far away from any flames or ignition sources, and reinstall it after it’s dried in the sun, or you can just go to the store and buy some closed cell foam and cut one to go in there.

String caulk works well. Like this one.
Thermwell Mortite Weatherstrip And Caulking Cord Gray https://www.amazon.com/dp/B0189BTRDW/ref=cm_sw_r_cp_api_glt_fabc_EDCE59VMSYGEG06KG69S?_encoding=UTF8&psc=1

Just one other tip: when sealing the cover it is important to add as little height as possible to the top of the cover, as every millimetre counts. The higher the cover, the more difficult it will be to install the radio console in such a way as to allow the drop down gauge panel to open to access the fuses. String caulk can make a good seal, but adds height. Aluminium tape may also be an option.

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