James Hardie to keep fighting asbestos allegations

The company at the centre of an asbestos inquiry in NSW, James Hardie Industries, has said it would continue to fight allegations it was liable for an $800 million shortfall in asbestos-related claims.

James Hardie is currently at the centre of a Special Commission of Inquiry set up by the NSW government to investigate a compensation fund the company set up in February 2001. The Medical Research and Compensation Foundation was given assets of almost $300 million to meet anticipated claims against James Hardie for asbestos disease compensation. Last October, the foundation announced claims were expected to reach $1.1 billion - meaning it would have an $800 million shortfall as new cases of asbestos disease develop around Australia in coming years.

James Hardie chief executive Peter Macdonald has reiterated the company's position, as he announced the full year results. "The company does not believe that it is liable to meet the shortfall claimed by the foundation," he said. He has earlier said that the former James Hardie Group companies were liable for only around 15% of all asbestos claims in Australia, and the $300 million in the foundation was enough to meet those claims. Macdonald said the company would not take the option of simply paying out a settlement rather than going through the costly and reputation-damaging process of the inquiry. "I do think it's important that the inquiry run its course and that the company puts its position clearly and fully to the inquiry," he said. Macdonald acknowledged that the inquiry was damaging to the company's reputation. "I'm not happy with the allegations that have been made against the company," he said. "They certainly harm the company's corporate reputation."