THE NSW Government says it will introduce a range of measures to stem the tide of home-building company failures across the state.

In the wake of three more home builders collapsing in the past fortnight, the Minister for Fair Trading, Virginia Judge, met representatives of the housing industry yesterday and they agreed to the following proposals:

P Mandatory financial reporting to the Office of Fair Trading, similar to existing requirements demanded by the Australian Securities and Investments Commission.

P All builders to undergo business training programs before being granted licences by the Office of Fair Trading.

P The Office of Fair Trading to hold a series of free business and insolvency seminars to provide advice to companies facing difficulties as the recession progresses.

Ms Judge said there were almost 170,000 licensed home-building companies in NSW and given that almost 90 per cent were run by individuals or "mum and dad" partnerships, care needed to be taken not to place overly onerous reporting requirements on small business.

"Nevertheless, company directors have an obligation to their customers and traders," she said.

"The collapse of a building company, no matter how small, creates a ripple effect throughout the community.

"Consumers want, and deserve, information so they can lodge claims with their insurer and traders need to contact or appoint administrators or liquidators as quickly as possible."

The Opposition spokesman for fair trading, Greg Aplin, said while any measure to protect consumers from industry failure was welcome, an overhaul of compulsory Home Builders Warranty Insurance was needed to ensure consumers did not end up trapped in tribunals or courts for years trying to have their homes completed.