Mesothelioma- the Financial Costs to Society

Substantially has been written about asbestos related diseases such as Mesothelioma over the last couple of years. Major has been on three main areas:

a) The unfortunate victims of mesothelioma such as ex - employees of asbestos gold mining companies who caught these diseases whilst in the course of their work.

We have seen the heart rendering images on TV of the people, all of them in their retirement years, gasping for air and suffering tremendously.

b) Whether the the product mining companies knew that asbestos mining was a danger to human life.

c) The Multibillion money class actions filed by the victims against their former employers seeking payment.


Two issues that contain not been addressed are the financial costs to world of asbestos related diseases such as Mesothelioma cancers and who will pay for these costs.

Second of all, should asbestos mining companies be paying compensation not only to the afflicted people of mesothelioma and other diseases but also to Society also?

You will find two costs to society that can be identified. The first is the fee to the public health system. The second cost is the loss of taxes earnings by governments credited to Asbestos mining companies claiming a tax deductions for the compensation obligations that are made to the victims.

In model of the expense to the public health system, the Asbestos Diseases First step toward Australia has explained that by 2020 there will be 13000 situations of mesothelioma and 40000 asbestos related lung malignancy diseases, totaling 53000 people and this is merely national! This means that 53000 people have to have regular medical attention for the next 15 years or so.

The question consequently, who pays for the cost? The response of course is the latest taxpayer and the next generation of taxpayers.

In relation to tax income, governments are essentially dropping out on tax earnings as the asbestos companies are claiming the payment payment as a taxes deduction.


 For illustrative purposes, assume that an the product mining company pays away $100m per year over five years to the victims. Also assume that the corporate tax rate is 30 %. As a result over five years, a respective government is burning off $150m in revenue.

Essentially it means that the asbestos mining companies are sharing the costs with the taxpayer. They pay 70 % of the compensation payment and the taxpayer pays the left over balance. Most people would view this as totally inequitable.

It can be seen that the The product companies are only paying a part of the costs rather than the full cost.
To rectify this, there are two possible solutions.

a) Respective Authorities should also join school actions with Mesothelioma victims against the asbestos gold mining companies seeking compensation for as well as future medical costs.

This could not be unprecedented as various State Governments states searched for compensation against the Cigarettes Companies to pay for the medical costs of its citizens who needed medical attention due to sick effects of smoking.

b) Governments deny a taxes deduction for Mesothelioma settlement payments made by the asbestos mining companies.


Till either part an or part b happens, it is the taxpayer who will be unfairly mired with the additional financial costs of Asbestos related diseases such as Mesothelioma cancer.