July 10th, 2006
Following the recent controversy over the tax ruling surrounding the James Hardie compensation fund for asbestos victims, the Prime Minister, John Howard, has spoken out. Many people were concerned when a tax ruling was revealed, indicating that the fund would not receive charitable status, and this led many people to believe that the company’s ability to make payments to asbestos victims would be affected.
However, the PM stated that he does not believe this to be the case. He said: "I am unconvinced that James Hardie would become unviable if it had to meet its full responsibilities to the asbestos victims. I am at a loss to understand why the general tax payer should pick up part of James Hardie's responsibilities - particularly against the background of the movement of assets by James Hardie out of Australia."
Hardie had agreed to set up the trust fund, which was to pay out up to $4.5 billion over the space of four decades, on the condition that the fund and payments made into it were classed as tax deductible.
The PM added: "I do resist the notion that the tax payer should pick up a certain percentage of James Hardie's liability. Why should the company that was responsible for the injury done shift to the general tax payer a liability that it should fully discharge."
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