The Nationals Senator for New South Wales John Williams says the reaction by a leading corporate firm to the Senate inquiry report into liquidators and administrators confirms the industry has been in denial for far too long.

Senator Williams, who instigated the Senate inquiry that released its report this week, said he was astonished to read that Managing Partner of Ferrier Hodgson Steve Sherman claimed "a lot of the input into the inquiry has apparently been driven by a disaffected minority group".

Senator Williams said he finds this offensive, particularly to those many individuals who have had their lives torn apart by unscrupulous practitioners who were allowed to go on their merry way while regulators were asleep at the wheel.

"Mr. Sherman said the complaints about one or two individuals created a lot of noise in an industry where there are over 650 registered liquidators. If Mr. Sherman read the submissions and evidence he would realise what damage just one or two can do, but I can assure him there are many more I have received complaints about.

The Insolvency Practitioners Association, which initially said the Senate inquiry was not needed, has now welcomed the initiatives to improve standards in the insolvency profession.

I would have thought Ferrier Hodgson would also embrace the 17 recommendations as a way of cleaning up this industry which does not have a good image.

The gravy train may be over", Senator Williams said.