Despite the Australian Council of Trade Unions pushing the Federal Government to offer a tax break on compensation payments for asbestos victims, Federal Treasurer Peter Costello has ruled it out.

The Government decision comes as the NSW Government appears set to legislate to force beleaguered Amsterdam-based manufacturer James Hardie into an asbestos victims’ compensation agreement; but the Federal Government also wants NSW not to give immunity to James Hardie directors against possible civil prosecution.

At a press conference this week, Mr Costello said the law that applies to James Hardie and its directors “will not be waived”.

“James Hardie can not expect a special tax law for itself,” he said. “Now let us be clear about this company. This company has not exactly been the best corporate citizen in Australia.”