FED:Calls for national asbestos compensation

AAP General News (Australia)
12-07-2010
FED:Calls for national asbestos compensation

SYDNEY, Dec 7 AAP - The states and territories are under pressure to "come to the party"

after the the federal and NSW governments announced a bail-out package for asbestos victims
to cover a compensation shortfall.

The commonwealth announced on Tuesday it will lend the NSW government up to $160 million
to ensure asbestos victims and their families continue to be compensated.

The state government will contribute an equal amount in funding to the Asbestos Injuries
Compensation Fund (AICF) each time it draws down from the federal loan.

Asbestos Diseases Foundation of Australia (ADFA) president Barry Robson welcomed the
joint agreement, saying there would be victims of asbestos-related diseases for years
to come.

"We're not talking five, six or even seven years, we're talking up to 60 years from
now there'll still be victims," he told AAP.

"There's people not even born yet that are going to come down with asbestos-related diseases."

Following the Global Financial Crisis and its impact on James Hardie, it was projected
the AICF would be exhausted within 12 months.

Asbestos compensation claims would have been rationed and paid in instalments, with
some victims facing the prospect of not living long enough to receive their full compensation.

"Their compensation is now guaranteed by this repayable loan - I've got to emphasise
that, it's a repayable loan - it doesn't let Hardies off the hook one little bit," Mr
Robson said.

But Mr Robson said there was disappointment that other state governments around Australia
hadn't "come to the party".

"They've just left it up to the NSW government and the federal government, but this
decision is for all Hardie victims, not just NSW victims," he said.

A spokesman for federal parliamentary secretary to the treasurer David Bradbury said
the commonwealth would use the Council Of Australian Governments (COAG) to look at whether
the other jurisdictions were prepared to contribute to a "national strategy" to assist
the fund.

"Moving forward we will consult with the other states and territories to work though
COAG to see whether the other jurisdictions are prepared to be involved in a national
strategy," the spokesman told AAP.

Announcing the agreement in Canberra, Prime Minister Julia Gillard said it did not
absolve James Hardie from liability.

"This in no way overrides the moral or legal obligation of James Hardie to continue
to make contributions into the fund," she told reporters.

NSW Attorney-General John Hatzistergos said the agreement was about helping James Hardie
meet its "moral and legal" obligations to asbestos victims.

In a statement, James Hardie agreed it wasn't off the hook.

"James Hardie notes that the provision of the proposed standby loan facility to the
Asbestos Injuries Compensation Fund (AICF) does not reduce the company's obligations,"

it said.

NSW Premier Kristina Keneally said the money would ensure up to three years of compensation
payments at current claim rates.

"Our action will ensure sufferers of asbestos-related diseases continue to receive
compensation on time and in full," she said.

Karen Banton, the wife of asbestos victim and campaigner Bernie Banton, who died in
2007, said families were relieved by the news.

"Obviously everyone would much rather they had their health, it doesn't bring you back
your health, but it does give an incredible peace of mind to the sufferer in particular
to know that their families won't be struggling financially after they're gone," she told
AAP.

Since the AICF was established in 2007, James Hardie has paid $375 million into the fund.

Unions NSW secretary Mark Lennon said that without the agreement asbestos compensation
claims would have had to be rationed.

"The agreement signed today will finally provide NSW asbestos victims and their families
some certainty on their long-term financial security," he said in a statement.

"Asbestos victims have been through enough without experiencing ongoing financial uncertainty.

"Today's agreement will hopefully end at least one aspect of the injustice they have suffered."

AAP dmg/tr/jsh

KEYWORD: ASBESTOS WRAP

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