The families of four tradesmen who died while working on the home insulation scheme will be compensated, Prime Minister Tony Abbott has foreshadowed.
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In his response in Parliament to a royal commission report into the former Rudd government's $2.8 billion home insulation program, Mr Abbott yesterday said a number of ministers were preparing measures.
The report, handed down last month, identified seven significant failings in the design and implementation of the scheme.
Mr Abbott announced several interim measures in the House of Representatives on Tuesday afternoon.
He said Environment Minister Greg Hunt and Finance Minister Mathias Cormann had been asked to develop options for the compensation for the next of kin of the four men who died: Rueben Barnes, Matthew Fuller, Mitchell Sweeney and Marcus Wilson.
Mr Abbott also signalled that businesses "adversely affected" by the scheme would be considered for compensation.
"Although nothing can bring them back, the Barnes, Fuller, Sweeney and Wilson families should know that government won't walk away, that government accepts responsibility and will do its best to make amends," Mr Abbott said.
"And, Madam Speaker, while nothing can compare to the pain of losing a child, there were other families who also suffered in serious ways, pre-existing home insulation businesses, large and small, have suffered significant losses as a result of this program, they trusted the government and were let down."
Mr Hunt has been charged with managing the government's response to the report across several of its departments.
Mr Abbott said on Tuesday the government would hand down a "final comprehensive" response to the royal commission report by the end of the year.
Employment Minister Eric Abetz has been asked to respond to the commission's findings as they relate to workplace laws and to investigate the conduct of the public service in administering the scheme.
Mr Abbott said he would use the next COAG meeting to raise commissioner Ian Hanger's recommendations to improve safety in roof cavaties.
Mr Hunt has also been asked to recommend an external expert who will review the role played by ministers and officials.
"I do wish to stress, though, that this is not a witchhunt but we do need to recognise that the home insulation program was a tragic failure, a failure of bureaucracy, and a workplace failure as well as a political failure," Mr Abbott said.
"All of us should learn from this failure because, Madam Speaker, there will be times in the future when governments believe that urgent action is required but even urgent action has to be prudent, cautious and wise."
