A two year ban handed to a Sydney liquidator is proof the industry is not without its faults, according to the Nationals Senator for New South Wales John Williams.

Senator Williams has instigated a Senate inquiry into the role of liquidators and administrators, their fees and their practices, and the involvement and activities of the Australian Securities and Investments Commission, prior to and following the collapse of a business.

He said when it was announced, industry representatives were quick to claim there was no need for the inquiry, but cases such as that of Geoffrey McDonald and Stuart Ariff clearly shows there is.

"For too long creditors, particularly unsecured creditors, have copped a belting when companies have become insolvent and on many occasions get nothing, but are amazed to see the fees liquidators charge.

A number of people have come to my office complaining about their dealings with liquidators, and I believe we are only scratching the surface. It is time the industry was thoroughly investigated, and this Senate inquiry will do exactly that.

I urge people to lodge submissions by the 12^th of February, and the Economics References Committee will report by the 31^st of August.", Senator Williams said.

Submissions may be made online at http://www.aph.gov.au/Senate/committee/economics_ctte/liquidators_09/index.htm