The New South Wales and Federal Governments, after listening to heartfelt pleas from asbestos victims, are lending James Hardie more than $300 million to make sure asbestos victims receive compensation.

The joint federal and NSW government cash injection comes months after James Hardie advised in April that it was not in a position to meet its 2007 commitment to compensate to victims and would be unable to contribute to the original $1.8 billion Asbestos Injuries Compensation Fund this year.

The company will not need to repay any of the taxpayer's money until 2020. Federal Minister responsible for the deal, Chris Bowen, in his interview to ABC Radio's AM program, discussed the modalities of the deal. "The Commonwealth will be lending the money to New South Wales.

New South Wales will make a loan to the fund to ensure that there's enough money in the fund in the short-term to deal with claims from asbestos victims". Bernie Banton Foundation CEO, and wife of asbestos victim by the same name, Karen Banton, says it has been a stressful time for victims. "People unfortunately are becoming younger and younger with the diagnosis of this asbestos disease and often they're leaving behind a spouse and young children", she said.