A new US draft asbestos bill – including a proposed $US140 billion trust fund – has had a mixed reaction from industry groups.

The proposed bill envisages a $US46 billion contribution by insurers, $US90 billion by asbestos defendants and $US4 billion by asbestos trusts.

The amounts match the maximum of what corporate figures and the insurance industry have indicated they will pay, but labour groups are expected to oppose the size of the fund. They believe the number of asbestos victims yet to emerge will be much higher than the proposed trust allows for.

Not surprisingly, plaintiff lawyers – whose lobbying power has ensured they have a seat at the table – support the unions’ argument, saying the fund risks collapse if claims are underestimated.

The proposed bill would take asbestos claims out of the courts, but in the case of funds running out claims would be dealt with in state courts. Industry groups have opposed any provision that would allow claims back in the courts.