Former chair of the Australian Competition and Consumer Commission Allan Fels has warned that increased government secrecy has created a greater need for whistleblowers but warned the people who expose bad behaviour among big institutions were at risk of intimidation and financial loss.

Mr Fels, an economist and boss of the competition watchdog for eight years until 2003, said the role of the whistleblower was crucial to allowing the law to work properly across both the public and the private sector.

Former ACCC head Allan Fels. Credit:Alex Ellinghausen

"Most of the serious harms are done in secret," Mr Fels said. "Most cartel cases, most of the big price-fixing cases, they are done very secretly and it's only through whistleblowers that you find out."

Despite the importance of people raising the flag when they discover unethical or criminal behaviour, he warned the protections afforded to them were "not good" and even worse in the public sector.