New Coalition Moves To Block Asbestos Bill

The new group calls itself the Coalition for Asbestos Reform. One industry lobbyist who asked not to be named out of concern that his comments could damage his in dealing with the Judiciary Committee said the coalition's main objective is to kill the trust fund provision in the bill. "Sen. Specter has hitched his wagon to a falling star," he said.

However, another industry lobbyist with long-term experience on the issue urged support for Senator Specter while the legislator works his way through the issues.

"I am aware of this new coalition effort," said Maria Berthoud, a principal and vice president at B-D Sagamore in Washington, D.C. "There are many companies who think that the trust fund approach will not work, nor gain the necessary political support to passs both chambers of Congress.

"However, I believe Sen. Specter has been a strong leader for the interested parties for a long time and that he deserves our support as he continues to try and find a middle ground solution to the very important asbestos issue."

Ms. Berthoud concluded that "if the affected parties have decided that a trust fund will not work, I guess we have to let the legislative process work itself out."

In comments to reporters, Sen. Frist said he wanted to give members more time to review the bill before it is formally introduced. Sen. Frist added that allowing Specter to circulate his discussion draft more widely will allow rank-and-file members to review the legislation.

However, one industry official said opposition to the proposal from the new coalition, and Sen. Specter's insistence on a broad compromise that includes a trust fund paid into by insurers, leaves open the possibility that the bill is dead in its present form despite Sen. Specter's insistence that his bill be the basis of committee action.

Coalition insurance members include AIG, Chubb, American Re, Swiss Re, General Re, SAFECO and Zurich Financial Services. Although not included in the latest letter, other members include DuPont, Exxon Mobil and Federal Mogul Corp.

"Forging a compromise with Sen. Patrick Leahy, D-Vermont, ranking minority member of the committee, that got farther and farther away from what the industry would accept is what is dooming it," one industry lobbyist said. The lobbyist added that the new coalition wants the trust fund concept scrapped, and any legislation that is passed to deal only with medical criteria.

"The latest discussion draft of the?legislation?raises serious concerns, such that we cannot support this legislation as proposed," the coalition said in a letter dated Jan. 28 and sent to Sens. Frist, Specter, Leahy and Harry Reid, D-Nev., minority leader. "Accordingly, we believe that the time has come for the consideration of other creative solutions to the asbestos crisis, such as federal legislation adopting meaningful medical criteria."