Fed: ASIC action shouldn't affect compo package: ACTU

AAP General News (Australia)
02-15-2007
Fed: ASIC action shouldn't affect compo package: ACTU

MELBOURNE, Feb 15 AAP - Unions don't expect civil legal action launched by the corporate
watchdog against James Hardie to affect the compensation package for asbestos victims.

The Australian Securities and Investment Commission (ASIC) is suing the building products
giant plus 10 current and former executives and directors for allegedly misleading investors
over its compensation payouts for asbestos disease victims.

ACTU secretary Greg Combet said the legal action in the NSW Supreme Court should not
affect last week's decision by the company's shareholders to approve a $4 billion compensation
payout for people diagnosed with asbestos-related diseases.

"We're very confident that the proceedings that have been launched by ASIC will not
disturb the proper implementation and pursuit of the compensation fund and further payments
to be made by James Hardie," Mr Combet told reporters in Melbourne.

"We believe that James Hardie is committed to the deal that has been implemented," he said.

Mr Combet said the action by ASIC today vindicated a union campaign against James Hardie
which eventually led to the company implementing a compensation package for asbestos disease
victims.

"We are not surprised by the announcement by ASIC because, obviously, when James Hardie
restructured some years ago we were very apprehensive and concerned that the affect of
the restructuring, of course, was to deny people their access to compensation," he said.

"We were concerned at the time, and subsequently, that there may have been breaches
of the Corporation's Act in the process of that restructuring.

"I think it vindicates ... the campaign that we ran and, ultimately, we were able to
secure a compensation settlement."

AAP sam/gfr/it/cdh

KEYWORD: JAMES HARDIE ACTU

2007 AAP Information Services Pty Limited (AAP) or its Licensors.