Page: 11851
The Hon. ELAINE NILE: I ask the Treasurer, representing the Minister for Health, further to the earlier reference to asbestos-related diseases, is it a fact that James Hardie Industries has announced the establishment of a foundation, with assets of $293 million, to compensate sufferers of asbestos-related diseases with claims against two former James Hardie subsidiaries? Is a fact that the James Hardie foundation can expect up to 40,000 asbestos-related claims over the next 20 years, which will exceed the foundation's $293 million? When the foundation's funds run out prior to the settlement of all claims by victims of asbestos-related disease, what assurance do claimants have that they will be properly compensated? What action will the Government take to ensure all claimants receive justice?
The Hon. J. J. DELLA BOSCA: I will answer the Hon. Elaine Nile's question as it has an impact on my portfolio area of the Dust Diseases Board. As the honourable member said, on 16 February James Hardie Industries Ltd announced that it had established a foundation intended to compensate sufferers of asbestos-related diseases. I am informed that the foundation will commence with assets of $293 million. I have taken the step of inviting James Hardie Industries to sit down with the chair of the Dust Diseases Board, unions and victims groups to discuss the proposal.
Because of the varying estimates of the number of future cases of mesothelioma and asbestos-related lung cancer, it is difficult to forecast with any certainty whether the foundation's funding will be sufficient. It is important that the financial and corporate structures of the foundation are sound and meet the needs of victims and their families. The Government's statutory no-fault compensation scheme, administered by the Dust Diseases Board, is funded by a levy imposed on workers compensation policies. Outstanding claims liability will be funded by investments and future levies. The board is fully funded for known claims as required by the Dust Diseases Act. The establishment of the James Hardie foundation does not impact on the Government's statutory scheme.
Essentially, the answer is that the rights of victims in that context will be kept in place, regardless of the actuarial outcomes of the James Hardie scheme. The essential points in relation to the foundation's capacity to continue to fund claims will be tested vigorously by this Government. I should add in favour of James Hardie that establishment of the foundation shows the company's willingness to review the clinical and epidemiological expertise that already exists in a number of Australian universities, as well as the equivalent workers compensation bodies to the Dust Diseases Board in the various jurisdictions. I hope that out of the formation of the foundation we will be able to develop world's best practice clinical services and research in the area of dust diseases because, sadly, they affect a large number of workers.
As many people have previously observed, the difficulty is that the lead time for the disease to start taking effect is so long that actuarial estimates about its impact, as well as appropriate plans for clinical treatment, are quite complex and need to be well funded. So that aspect of the announcement by James Hardie is much appreciated. The Government is keen to work with James Hardie on developing the foundation into something that will ensure that Australia leads the way in looking after workers affected by dust diseases.