Fire investigators will sift through the ruins of a family home in western Sydney this morning, amid suspicions faulty insulation could have set it on fire.

Fireman John Roach says the home at Woodpark has suffered very bad structural damage and may have to be demolished after its roof collapsed during the blaze.

The fire could be the 106th linked to the Government’s home insulation program.

While the scheme was axed last month, the Government is still facing serious questions about who knew what and when, in regards to safety warnings.

Prime Minister Kevin Rudd said the co-ordinator general advised the cabinet on the implementation of the program “from time to time”.

“I’m advised that in the co-ordinator general’s reports over that period of time no safety concerns were raised,” he said last month.

The Federal Opposition believes this assurance was a “gotcha” moment.

It says Mr Rudd must give a full explanation to Parliament next week, detailing all the warnings he was given about the program.

It says Mr Rudd was given a safety warning by the former minister Peter Garrett, and it points to the Prime Minister’s admission in Parliament yesterday that he received a letter on August 14.

Mr Rudd says he received a number of letters after that date too and he was asked to release them.

“These obviously are associated with the cabinet process and we are appropriately protected,” he said.

This means the public may never know what was in the letters.

Opposition environment spokesman Greg Hunt says the Australian people deserve a full statement from the Prime Minister on the floor of the Parliament next week.

“It’s very clear that – on the evidence before the Parliament and on the word around Canberra – that the Prime Minister’s department was not only told and warned about safety risks but also watered down the safety recommendations of the environment department,” he said.

“We have reason to believe that the Government did get warnings and recommendations for better safety standards than were adopted in the program and that it was the Prime Minister’s department through the project control group that watered those safety recommendations. And the Prime Minister denied that he had any safety knowledge on the 23rd of last month.

“Now, in Parliament just this week, only yesterday, he confessed that had had warnings from Peter Garrett on the 14th of August. But he won’t say what was in them.”

Mr Hunt says the Opposition has deep reservations about the Government plunging in and repeating the same mistakes again.