Question over Hardie Laws

Constitutional lawyers are divided over NSW laws which will 
attempt to force James Hardie to cough up the $2 billion it owes 
asbestos disease sufferers. The Government says the new laws, 
announced the week before last, will wind back the clock on James 
Hardie's 2001 corporate restructure and transfer ownership of two 
asbestos-producing subsidiaries back to the James Hardie 
group.

NSW Premier, Bob Carr, said he had been assured by legal experts 
that the legislation would be legally enforcable.

But the head of the government's special commission of inquiry in 
the Hardie scandal, David Jackson, QC, said such legislation 
would be the subject of constitutional challenges in Australia.

Mr Jackson also cast doubt on the law's enforceability in the US 
or the Netherlands, where James Hardie has relocated its 
business.

James Hardie signalled during the inquiry its intention to fight 
any retrospective legislation targeting their 2001 move offshore.

The laws are expected to increase pressure on James Hardie during 
ongoing negotiations with the unions to make up the cash 
shortfall voluntarily.