Fed: Vindication for Bernie, but Hardie execs' fines 'too low'

AAP General News (Australia)
08-20-2009
Fed: Vindication for Bernie, but Hardie execs' fines 'too low'

By Doug Conway, Senior Correspondent

SYDNEY, Aug 20 AAP - Asbestos campaigner Karen Banton has slammed as inadequate the
financial penalties handed out to former James Hardie Industries directors but claimed
vindication for her late husband Bernie, who spearheaded the fight for asbestos disease
victims.

Mrs Banton said she was disappointed that Hardie's former chief executive Peter Macdonald
was fined $350,000 for breaching the Corporations Act, and that former non-executive board
members, including Meredith Hellicar and Telstra director Peter Willcox, were fined as
little as $30,000.

"I would have liked to have seen the penalties be a lot higher," said Mrs Banton, who
is carrying on the battle for compensation started by her husband Bernie, the former Hardie
employee who died of asbestos disease two years ago.

"But I am very satisfied with the disqualifications."

NSW Supreme Court Justice Ian Gzell disqualified Mr Macdonald from managing a company
for 15 years.

Other former directors were disqualified for between five and seven years for their
part in deceptive and misleading conduct over the company's measures to meet its compensation
liabilities for asbestos disease sufferers.

"It sends a very strong message to corporate Australia that directors have accountabilities
and responsibilities, and they should not take on a directorship if they're not prepared
to be completely above board," Mrs Banton said.

Asked if the 10 Hardie executives had got what they deserved, she replied: "Certainly
their reputations are ruined for life.

"Really I feel for the barristers that were defending them, because how do you defend
the indefensible?

"No amount of money would have been adequate for their deceptions and misleading behaviour."

She said her late husband would not have been satisfied with the penalties.

"But he would feel vindicated.

He had a very strong faith.

"We are all going to be accountable one day, and there's not going to be any possibility
of appeals.

"These people are going to have to give account for their actions when they have finished
this life.

"If they haven't asked for forgiveness for their actions, then that will be a definite
day of reckoning for them, as it is for any of us."

Mrs Banton said she would continue to fight for a solution to the "temporary problem"

of a shortfall in the compensation fund caused by the global financial crisis.

"We want the company to remain viable and profitable because that is the only hope
for asbestos sufferers of the future to be compensated," she said.

Asked if the fines imposed on Thursday should be paid into the asbestos compensation
fund rather than to the commonwealth, she said: "We do not expect the taxpayer to bail
out the fund."

The Australian Securities and Investments Commission (ASIC) had asked the court to
disqualify Mr Macdonald for up to 16 years and fine him between $1.47 million and $1.81
million.

The company James Hardie NV was fined $80,000.

AAP dc/jl/apm

KEYWORD: JAMES HARDIE BANTON

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