Four months after being presented with recommendations to tighten up the rules governing the insolvency industry, the Federal Government has been mute in its response.

The Nationals Senator for New South Wales John Williams who instigated the Senate Economics Inquiry said the report was tabled on the 14^th of September last year and the Government had three months to provide a response, but the silence has been deafening.

Senator Williams said the committee, which comprised members of all major parties plus an Independent, had been unanimous in its call for structural reform to enhance oversight of the industry including measures to deter misconduct and ensure better regulation.

"Many who gave verbal and written evidence to the Senate inquiry highlighted problems with liquidators and administrators at the time of a business collapse, and it served as a warning that a shake-up was needed.

The number of complaints to ASIC almost doubled in 2008-09 compared to the previous year.

Taking the responsibility away from the Australian Securities and Investments Commission and the establishment of the Australian Insolvency Practitioners Authority (AIPA) was the key recommendation from the committee, and a licensing system would be established to replace the existing registration system.

AIPA would have the power to suspend a practitioner's licence if a number of criteria are breached such as perceived overcharging.

But those waiting to see if the Gillard government would act on the 16 recommendations have been let down. It is not interested in weeding out the bad apples and giving Australians more confidence in the insolvency profession.

I will be pursuing this issue when Parliament resumes", Senator Williams said.