Asbestos victims in appeal to Kevin Rudd

VICTIMS of the James Hardie asbestos scandal will appeal to the Rudd
Government for a financial bailout, as the special company fund set up to
make huge compensation payouts faces a $350million shortfall.

The appeal follows an admission that the James Hardie asbestos compensation
fund established in 2006 cannot meet its payment targets over the next three
to five years because of the impact of the recession on the building products
company.

Under the terms of a $1.5 billion settlement negotiated with James Hardie,
victims of asbestos-related diseases are to receive compensation instalments if
there is a fund shortfall.

But victims groups, backed by unions, want the Rudd Government to pay
hundreds of injured workers and their families the agreed compensation in
full and seek reimbursement later from James Hardie.

Under the proposal, victims would assign their rights to compensation to the
Rudd Government, allowing it to legally collect any shortfall from the company.

Victims groups are also appealing for special assistance from the NSW
Government, which was instrumental in setting up the fund by passing
special legislation three years ago.

Paul Bastian, NSW secretary of the Australian Manufacturing Workers Union,
said he would write to the Prime Minister asking for help and wanted Mr Rudd
to keep his word that "no one would go without compensation".

Mr Bastian said victims groups accepted the economic downturn worldwide
had eroded profits for James Hardie, particularly in its US building products
division.

Victims, he said, also accepted that James Hardie needed to stay afloat so
payments into the agreed James Hardie Asbestos Injury Fund could be
maintained.

But victims were also entitled on moral grounds to receive full entitlements.

Asbestos campaigners yesterday put pressure on the NSW Government to
come to the party following a meeting in Sydney with NSW Attorney-General
John Hatzistergos. Pressure on the Rees Government to join any bailout is
especially acute considering his role in setting up the fund. "I think the state
Government should be our white knight," Mr Bastian said.

Mr Rudd took a special interest in the welfare of James Hardie asbestos
victims before the 2007 federal election, and has paid tribute to the work
of their late campaigning leader, Bernie Banton.

Yesterday a spokesman for the Prime Minister said Mr Rudd stood by his
comments on compensation for victims, but referred the matter to Deputy
Prime Minister Julia Gillard.

The office of the Rudd Government's Minister for Superannuation and
Corporate Law, Nick Sherry, later issued a statement saying the Government
was concerned to see victims received their compensation entitlements but
the matter was principally one for the NSW Government.

A spokeswoman for Senator Sherry said the Minister had written to Mr
Hatzistergos on April 28 requesting an update on any shortfall issues.

"This is principally a matter for the NSW Government," she said.
"The commonwealth Government will seriously consider any issues raised
and consult with interested parties as required."

Mr Hatzistergos's spokesman said the Government was willing to listen to
victims groups, and no decision had been made on assistance.

Mr Bastian said one avenue of federal funding would be to allow $153 million
in James Hardie funds held by the tax office to be released for victims
compensation payouts. "Priority should be the victims," he said.

Ray Colbert, acting president of the Queensland Asbestos and Related Diseases
Society, said life expectancy for many victims was short and they should not
have to wait.


Brad Norington May 09, 2009
Article from: The Australian