The Federal Government's insulation program is facing more questions after claims that it was warned some imported insulation batts reeked of the toxic chemical formaldehyde.

A Melbourne insulation industry leader Warrick Batt says he told Environment Minister Peter Garrett that some imported fibreglass products had high levels of the chemical and other dangerous substances.

He says he has had several meetings with the minister over the last six months and also raised concerns about whether the batts were being installed to Australian standards.

But Mr Batt has told Saturday AM Mr Garrett's response was unacceptable.

"His basic reply was if that is the case then we should prove that and if we did, then he would certainly take action on it," he said.

"The issue that we had there was that we didn't feel that it was our role as a manufacturer to be policing these imported products which had only started coming in due to the stimulus package in the first place."

But Mr Garrett says he has not seen any proof to back claims that imported insulation batts contain dangerous levels of toxic chemicals.

Mr Garrett says he is still waiting for evidence to support Mr Batt's claim.

"If there are any products there which he can show the Department do breach those standards and do present any health risks then I want to know about that," he said.

Mr Garrett says all batts used in the program have to conform to Australian standards.

He says he is doing everything he can to ensure the insulation program is safe and he will not buckle to Opposition calls for him to resign.

"I'm reminding people of the way in which we've established this program, the national training modules which we've put in place, the levels of safety under the program in terms of guidelines, the fact that I've taken additional actions when matters have been drawn to my attention - most often and in many cases when I've asked for more advice," he said.

"Not because I've ignored advice, I've actually taken the advice."