Dr Packer revealed she was dealing directly with the repercussions of the deadly insulation, having been appointed to act as a trustee for a young person whose parents had died and who had been assisted to purchase a home that later turned out to have Mr Fluffy. She also lived a few doors down from a Mr Fluffy home and had been following the crisis closely.

She will lead nine members of the Community and Expert Reference Group to help inform government policy regarding the future of more than 1000 Canberra home owners affected by Mr Fluffy asbestos insulation.

The group will follow the model of the ACT Bushfire Recovery Taskforce and work closely with the Asbestos Response Taskforce, and will have a direct line to government to express the views of affected families during whatever remediation process the government decides to put in place.

The committee comprises Brianna Heseltine, convener of the Fluffy Owners Residents Action Group and Mr Fluffy home owner; Chris Healy, former director of the ACT Bushfire Recovery Centre and Mr Fluffy home owner; Chris Redmond, director of Woden Community Service and Mr Fluffy home owner; Dean Hall, ACT secretary of the Construction, Forestry, Mining and Energy Union; John Miller, executive director of the Master Builders Association of the ACT; Neil Evans, chief executive officer of the Housing Industry Association of the ACT; Ron Bell, chief executive officer of the Real Estate Institute of the ACT; Mark McCabe, ACT Work Safety Commissioner; and Dr Andrew Pengilley, acting Chief Health Officer for the ACT.

ACT Chief Minister Katy Gallagher said the government was ''committed to providing long-term support to the households affected by Mr Fluffy asbestos''.

The group would be expected to deal with a range of issues - from families experiencing anxiety and children in acute distress, to financial concerns, out-of-home living arrangements and issues relating to rental tenancies in Mr Fluffy homes.

There are now 31 families who have moved out of their homes, such is the danger of asbestos levels in their living areas. Ms Gallagher noted that more than $200,000 had been spent in financial support for these families.

She was thankful that Dr Packer had agreed to lead the group, as she was a respected Canberran, a compassionate advocate, and well-known across the community.

Dr Packer has been a paediatrician since 1972 and worked as a community paediatrician with a special interest in child abuse and abuse prevention from 1990. Having retired from full-time work, Dr Packer said she had agreed to chair the group because she believed her considerable experience assisting families in trauma could help Mr Fluffy victims.

''Rather than being a decision-making body, the CERG is there to listen to the community and advocate to the taskforce,'' she said. "One of my main intentions going into the role will be to assist those households and individuals affected by the asbestos insulation issues to get help and support from government.''

But Dr Packer noted there were no magic solutions for affected families.

''It is a glaring example that even with the best of intentions and being as careful as you can, you can end up in a nightmare of a situation. When people are in terrifying stress they want immediate answers, but there aren’t any immediate answers.''

Issues including how affected families can make representations to the group will be worked out when members meet for the first time in the coming weeks.

Opposition Leader Jeremy Hanson welcomed the group and the appointment of Dr Packer as chair, but noted its role and responsibilities remained ill-defined.

''We do want to make sure this value adds rather than adding another tier of bureaucracy,'' he said.

The opposition said the taskforce had not been properly resourced and home owners were not being dealt with in an adequate time.