Companies Write to Oppose Draft US Asbestos Bill
Date: 03-Feb-05
Country: USA
The group sent a letter dated Jan. 28 to Senate Judiciary Committee Chairman Arlen Specter, a Pennsylvania Republican, complaining the latest draft of his plan for a compensation fund to replace asbestos suits "raises serious concerns.
"We cannot currently support this legislation as proposed," said the letter from a dozen insurers and asbestos defendant companies calling themselves the Coalition for Asbestos Reform. Copies of it were circulating on Capitol Hill.
Rather than set up a $140 billion fund, as Specter's plan suggests, it was time to consider other solutions, the group said -- such as legislation setting medical criteria for asbestos victims to bring claims against companies.
Among the signatories to the Jan. 28 letter was American International Group Inc., an insurer that has long opposed the concept of creating a multi-billion-dollar trust fund to handle claims for asbestos-caused illness.
The signatories also included Chubb Corp.; General Re Corp., a unit of Berkshire Hathaway Inc. run by billionaire Warren Buffett; A.W. Chesterton Co., a manufacturer of industrial fluids; and the Associated General Contractors of America.
Asbestos was widely used for fireproofing and insulation until the 1970s. Scientists say inhaled fibers are linked to cancer and other diseases, and hundreds of thousands of injury claims have clogged US courts and bankrupted companies.
Two groups -- the National Association of Manufacturers' Asbestos Alliance and the Asbestos Study Group -- have worked with lawmakers for two years to try to find a legislative solution to limit asbestos liability. But the authors of the Jan. 28 letter said these groups "do not necessarily speak for us".
Several other businesses also wrote to Specter earlier this month to complain that the payments companies would have to make to the fund proposed by Specter would exceed the asbestos-related costs they already face.
Specter plans to hold a hearing on Wednesday on his draft legislation, examining how to distinguish asbestos exposure from exposure to another mineral, silica, that also has been blamed for causing illness in workers.