Hardie Pay Raises Unfair, says Australian Treasurer

September 26, 2006 - James Hardie's directors should “meet their obligations to asbestos victims before awarding themselves pay raises,” Peter Costello, treasurer of the Commonwealth of Australia, told reporters and others assembled near a recent shareholders convention where Hardie directors were awarded pay hikes in access of $1.1 million.

Though twenty percent of the shareholders did not support the pay raises, the motion was passed nonetheless, giving Hardie chairperson Meredith Hellicar a $160,000 per year raise, awarding an extra $72,000 to the vice chairperson, and an additional $53,000 to the company’s other 4 directors.

Outrage was the word of choice for Costello and the families of victims of asbestos diseases when they learned of the pay increases.  The Daily Telegraph newspaper in Australia recorded treasurer Costello as saying that the company “should focus on paying its taxes and helping asbestos victims first.”

“I would like to see the directors concentrate on paying the liabilities and meeting their tax obligations and I think if the directors were able to accomplish both of those things they could be satisfied that they'd discharged their duties. But until those things have been accomplished, I would recommend that the directors continue to work towards that aim," he said.

"James Hardie is a company that tried to escape its liabilities in Australia and then it shopped the world for a cheap tax jurisdiction.  Asbestos victims in this country deserve compensation and it won't be able to escape its tax liabilities. It will have to comply with Australian tax laws,” Costello continued.

Hardie’s $4.5 billion 40-year compensation scheme for victims of asbestos-related diseases has been stalled because the company is seeking charity status for the monies it contributes to the fund.  So far, the taxation office has denied that status.