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.

The new tax masquerading as the Carbon Pollution Reduction Scheme will not be lumped on the Australian community after the legislation was voted down in the Senate.

The Nationals Senator for New South Wales John Williams said the result vindicates the stand taken by The Nationals over the past year as they warned the nation of financial pain if the flawed emissions trading scheme was introduced.