Boycott Threatened to Gain Compensation for Asbestos Victims

"PA"

Australian opposition leader Mark Latham threatened a nationwide boycott of one of the country’s biggest building materials companies today to force it to pay compensation to victims of asbestos poisoning.

The Labour Party leader said if he wins the October 9 federal elections he will intensify pressure on James Hardie Industries, once Australia’s biggest asbestos manufacturer.

The company responded by saying Mr Latham’s campaign pledge would only hurt its ability to fund future claims.

Latham met with an asbestos victims group and promised that a Labour government would encourage the states to impose their own bans on James Hardie’s products.

“When we come into government, in adding pressure on (James Hardie), I think it’s appropriate to have a nationwide ban in all levels of government,” Latham said after meeting Bernie Banton, the acting president of the Asbestos Diseases Foundation of Australia.

Every state and territory, except the Australian Capital Territory which is also contesting elections, has backed a possible ban.

But the company questioned the financial soundness of Latham’s promise.

“Given that James Hardie has proposed to fund all legitimate future compensation claims, a product boycott doesn’t seem to be in the interests of such a proposal,” said Chris Falvey, a company spokesman.

A New South Wales state inquiry ruled earlier this week that the company had deliberately tried to mislead the public into thinking it had set aside sufficient funds to compensate all Australian victims of asbestos poisoning.

James Hardie set up a £116 million compensation fund in 2001. The inquiry ruled that the final compensation bill was likely to be over £600 million.