Government Says No To Hardie Tax Break -- MesoLink.org -- 07-26-06

The Howard Government has rejected appeals by James Hardie to be given tax concessions on its multi-billion dollar compensation fund for asbestos victims, which could put the whole deal at risk according to the troubled building products manufacturer.

Peter Costello went on to state that other companies in the same boat had done the right thing by dealing with compensation claims from the start rather than waiting and then seeking concessions in terms of taxes, which is what has put Hardie at the center of controversy for the past couple of years.

Hardie has already told the treasurer and other government officials that the whole compensation deal could be at risk should the tax breaks not be made available by the government, but Costello was sceptical about this, stating that the fund would lose around one hundred million because of the decision on tax breaks, and not one and a half billion as Hardie officials claim.

Costello stated: "The Government strongly believes that James Hardie should honour its obligation to fully compensate asbestos victims in the same way that other companies with asbestos obligations have been willing to meet those responsibilities; that is, in accordance with current tax law."