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Senators praise Day's 'honourable' exit

AAP logoAAP 17/10/2016

Senate colleagues have heaped praise on Bob Day following the businessman's decision to exit parliament in the wake of his home-building companies going into liquidation.

Government frontbencher Matthew Canavan described the Family First senator as a man of great integrity.

"He will be a great loss to the Senate," he told reporters in Canberra on Tuesday.

"He would appear to be putting the interests of his clients and customers ahead of his own."

Senator Day, once regarded as one of Australia's richest politicians, made his shock announcement on Monday.

The liquidation of his Home Australia Group of companies has halted construction on 207 new homes in South Australia, Western Australia, Queensland, Victoria and NSW.

Labor senator Jenny McAllister said it was a sad situation for the businessman but much sadder for his customers.

Crossbench senator Derryn Hinch said Senator Day had done the "honourable" thing.

"I feel sorry for the people in limbo who have work stopped on their houses," he said.

Independent senator Nick Xenophon called for extra protections for subcontractors.

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