Mr Fluffy asbestos crisis: Families involved thrown $1 billion lifeline by Federal Government

Updated

More than 1,000 anxious and grief stricken families caught up in an asbestos crisis have been thrown a $1 billion lifeline by Federal Cabinet.

Yesterday it agreed to give the ACT Government a concessional loan to help pay for the demolition of more than 1,000 homes riddled with potentially deadly asbestos dust.

Houses in Canberra and parts of New South Wales were pumped full of loose-fill asbestos insulation in the 1960s and 1970s by an operator that became known as Mr Fluffy.

The Commonwealth paid for a mass clean-up operation in the late 1980s and early 1990s and the houses were declared safe to live in.

But in the past year, it has been revealed some asbestos dust remained.

The microscopic substance has been found on pillows and in central heating systems.

About 20 families have abandoned their homes and many others face financial ruin.

The $1 billion loan will operate as a line of credit and have no impact on the federal budget's bottom line.

Once the homes have been demolished, the ACT Government is expected to use the proceeds from the sale of some of the vacant blocks to repay up to 70 per cent of the loan.

Some of the loan will be set aside to safely dispose of the asbestos. Fixing the problem is likely to cost the Territory Government about $300 million in total.

ACT Chief Minister Katy Gallagher and the Federal Government minister responsible, Eric Abetz, will meet soon to discuss the Commonwealth's offer.

A spokesman for Senator Abetz refused to comment on the Cabinet decision.

"The Government and the ACT are working collaboratively to solve this issue in the best way possible but there are still some details to be worked through," he said.

The Commonwealth ran the ACT when the Mr Fluffy product was first installed and the decision is likely to disappoint some residents.

They have been demanding the Federal Government also shoulder some of the budget burden of fixing the problem.

Mr Fluffy crisis 'crippling families'

The Ziolkowski family was forced from their home in July, when blue asbestos was found in the heating system.

Lisa Ziolkowski is worried her two young children might eventually develop mesothelioma, a rare and often fatal cancer that is almost always caused by exposure to asbestos.

"I have been having a lot of mental health issues in terms of having anxiety attacks," Mrs Ziolkowski told AM.

"My hands shake and my eyes twitch. It's been really rough.

"The wait for [Government action] is horrible. I don't know how to put it into words.

"We just feel like we're in limbo at the moment."

The family is living in a two-bedroom flat while their home sits vacant.

Brianna Heseltine from the Fluffy Owners and Residents Action Group said hundreds of other people have similar stories of horror and heartache.

"People are beyond frustrated. They're angry, they're full of grief, their homes have been lost," she said.

"They tell me it's like they are grieving the death of a family member."

Several residents are still considering a class action lawsuit.

Topics: asbestos, urban-development-and-planning, act, australia

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