Finalisation of the James Hardie asbestos compensation fund has been set back yet again, despite the NSW Government taking the first legislative step to ensuring future payouts happen.

While an agreement between James Hardie and the State Government was expected by the end of this week, further negotiations may mean funds won’t be paid until October, when shareholders are scheduled to approve the deal.

According to Premier Bob Carr, the delay is the result of the complexity of dealing with the Australian, Dutch and US laws involved.

“We now expect that the final agreement will be settled in late July or early August,” he said.

The Government has made some progress with the introduction of legislation to protect future payouts, which will prevent James Hardie subsidiaries avoiding payment by leaving NSW or closing their operations down.

Mr Carr says the legislation will protect the rights of claimants by ensuring victims of asbestos can claim compensation well into the future.