Australia Warns James Hardie Co. to Halt Delays

June 30, 2006 - The government of Australia has issued a stern warning to James Hardie Co., the country’s number one producer of asbestos siding, that it can no longer delay making compensation to workers and others who were sickened by their products.

The Australian Tax Office recently granted Hardie a tax-exempt status for ongoing payments being made to the $4.5 billion fund that has been established to compensate workers with asbestos-related diseases like asbestosis and mesothelioma, an aggressive cancer for which the only known cause is asbestos inhalation. 

"[Hardie] tried to cheat the victims then cheat the tax man; now that it has got an obligation to pay the victims with full tax deductibility, it has no excuse for not paying," said treasurer Peter Costello.

He also stated that Hardie previously tried to cheat victims out of compensation by moving its base to the Netherlands and wanted "every tax rort (loophole) it can find."

“Would it like more tax rorts?” asked Costello in an article penned by the Australian Free Press.  “Of course, it would, but it has now no excuse whatsoever but to pay the victims and I would say to James Hardie, now is the time to acknowledge that this is an extremely beneficial ruling for it and to get on and pay the victims."

The article also reiterates the fact that James Hardie relocated from Australia to the Netherlands in 2003, angering Australians who learned that the company had established an under-funded foundation to compensate asbestos victims and was attempted to avoid responsibility for any further liabilities in the future.