Asbestos: The lies that killed

Asbestos, now banned in the EU, kills up to 4,000 people a year in the UK alone. In this exclusive report, Ed Howker reveals how the industry hid the truth for decades and why the death toll will certainly continue to rise.

There are nearly one million documents on microfiche sitting in the office of the Manchester Metropolitan University Business School academic Geoffrey Tweedale. They expose a scandal that ranks among the biggest and costliest of our age: how the Lancashire manufacturing giant Turner & Newall (T&N), once the world's largest asbestos conglomerate, exposed millions to a lethal carcinogen in full knowledge of its dangers, using PR firms and politicians to hide a truth that it had secretly admitted to in 1961, namely that "the only really safe number of asbestos fibres in the works environment is nil".

Hidden in this massive archive are documents, revealed here for the first time, which tell the story of corporate recklessness that has led to the deaths of thousands of men and women in Britain who were once exposed to asbestos.

People living in the Spodden Valley area of Rochdale in the 1950s used to joke that they would get frost all year round. The local wood was nicknamed "the snow trees" and even the blackberries picked in late summer were covered with a fine white powder. But the "frost" was no joke - it was asbestos blown from extractor fans at the Turner & Newall factory in the heart of the valley.

Derek Philips never worked there, but for 19 years lived just yards from the site. He played bass in a band with T&N workers and recalls the factory as "the centre of the community". The guitars hang on the walls of his current home, a static caravan in the Pennine foothills where he waits to die of one of the asbestos-related diseases - meso thelioma, which appears decades after exposure to asbestos and which is killing more than 2,000 people every year in the UK.

His plight has been all too common in Rochdale. In the 1980s the New Statesman reported that on some roads near the factory every second household had lost a family member to asbestos diseases.

"I was diagnosed in October [2007]," says Philips. "A month later they drained three litres of fluid from my lungs. I couldn't even stand up properly. I've just no chance, have I? I didn't know about the risks."

In the coming months, how he was exposed to asbestos and who he was working for at that time will become vital issues as lawyers fight to win compensation for Derek.

The latest gambit of some insurers is to claim that their liabilities extend only to victims whose disease manifests (is triggered) when they are actually at work, not when they were negligently exposed, which can occur decades earlier. The union Unite is backing one of six test cases that have been presented on behalf of victims to Mr Justice Burton, who will rule in the high court this autumn. If he finds for the insurers, thousands of mesothelioma victims could find themselves without compensation for their suffering.

This long-running war between victims and insurers has an unlikely new player: Warren Buffett, the richest man in the world, who will watch the results of the "trigger issue" case with interest. Next year, National Indemnity Company, a division of the billionaire's Berkshire Hathaway, will take control of an office in the City of London that is unable to respond to telephone inquiries and has only one full-time employee. This skeleton of a business is called Equitas. It was worth $8.7bn in cash and securities when Buffett took it over in 2006. It had been created a decade earlier by Lloyd's of London to solve a multibillion-dollar crisis in insurance: the overextended liabilities of Lloyd's Names.

 

Who is liable?

 

By the 1980s, the burden of asbestos-related insurance claims underwritten by Lloyd's Names had become so great that the Names were threatened with bankruptcy. Equitas was established to manage the liabilities. Nearly half its reserves are dedicated to asbestos reinsurance claims predominantly from the United States. Some experts considered even Equitas's billions insufficient to cover the insurers. Buffett's deal augments the fund by a further $7bn to cover any shortfall and the Names will heave a collective sigh of relief when the transaction is approved formally by the high court next year.

So, what is in it for Buffett? When the Financial Times first interviewed him about the proposed deal in 2006, he admitted: "It will be long after I am dead before we know the final answers on how it all works out." Meanwhile, however, he will gain access to some of the most capable reinsurance analysts in the world.

Geoffrey Tweedale, author of Magic Mineral to Killer Dust, comments: "The deal will only be profitable if Berkshire Hathaway can limit their liabilities." In other words, Buffett would have to limit payments to the insurers that compensate victims. Alistair Darling's "bonfire of red tape" announced in the last Budget will help.

In July, the Treasury amended the Employers' Liability Regulations to revoke the requirement for businesses to keep insurance records for 40 years. But, in asbestos-related cases, decades can pass between exposure and the development of the disease. Without records, victims may be unable to establish who is liable. Tony Whitston, who runs the Asbestos Victims Support Groups Forum UK, says: "It's a body blow to our groups who have to pick up the pieces when victims are unable to obtain justice."

The people of Rochdale have long experience of that.

Samuel Turner was a pioneer, spinning fireproof and corrosion-resistant textiles from Canadian asbestos on secondhand cotton machinery in the 1870s. From meagre beginnings, T&N grew to be the biggest asbestos conglomerate in the world, as well as a popular local factory.

Brian Penty worked at the site from 1963 until 1996: "There was a bowling green and Christmas parties for the kids," he explains. "It was a family thing. People never really took on board what was being said about asbestos."

Beneath the rosy tale of northern endeavour lurked a darker story. As early as 1898, government factory inspectors were warning that asbestos "easily demonstrated danger to the health of the workers". The T&N files first refer to asbestos cancer in Rochdale in the 1930s.

By 1947, the national factory inspector's report emphasised the incidence of lung cancer among asbestos workers but, astonishingly, no detailed research was undertaken by the government. Only in 1955 did Richard Doll, then a junior academic (and later famous for establishing the connection between tobacco-smoking and cancer), complete an epidemiological study in Rochdale which established the link between asbestos and cancer. He had been approached by T&N but the company initially refused to allow him to publish the findings. Later T&N persuaded its own scientist, Dr John Knox, to draft a paper discrediting Doll's work. Knox encouraged academic scepticism about asbestos diseases but clearly knew there was a problem. He regularly X-rayed employees and when the results showed them developing signs of disease moved them to less dusty jobs. They were not told why.

The signed witness statement of a worker who later died states: "They did not say in 1974 that I had asbestosis but I expect there was something on my X-ray which made them think it was time I came out."

And Brian Penty remembers a so-called "blood pressure survey" in 1982: "They actually drew blood. A couple of years later I was at my GP's surgery - he'd been sent the results. Apparently they were testing for asbestos in my bloodstream."

In public, T&N strove to be portrayed as a responsible employer. In 1944, a manager of the plant wrote to factory inspectors: "In a number of cases we make ex-gratia payments in addition to the statutory compensation. Where an employee has no standing for some technicality we pay compensation, as it appears desirable to deal with the problem on broad lines, and not to rely on some legal point in our favour."

Yet, when the first official asbestosis victim, Nellie Kershaw, died in 1924, the firm wrangled about paying compensation to her bereaved family. Finally they decided not even to contribute towards funeral expenses since, as one company manager warned, it "would create a precedent and admit responsibility". She was buried in an unmarked grave.

 

The T&N archives are full of death certificates of former employees, placed with internal correspondence never disclosed to grieving families. The official cause of death attributed to Edna Penham, a 64-year-old asbestos stripper at T&N, for example, was peritonitis. The company's personnel manager noted that his records showed she was "40 per cent disabled due to asbestosis", though there was no reference to this on her death certificate. It appears the coroner did not know. There was no inquest.

 

Keeping quiet

 

Eventually T&N employed the insurance giant Commercial Union to administer a fund for diseased employees. Geoffrey Tweedale found examples of former employees being placed under surveillance by the firm - desperate not to be held liable. Company policy appeared to be to mislead coroners' inquests, pay compensation only if forced and avoid payouts that might create precedents.

In 1964, T&N solicitors warned the directors: "We have, over the years, been able to talk our way out of claims but we have always recognised that at some stage solicitors of experience . . . would, with the advance in medical knowledge and the development of the law . . . recognise there is no real defence to these claims and take us to trial."

The company found government representatives only too pliant. One medical adviser is recorded as advising T&N to keep quiet about the cancer dangers of their product. In correspondence between two directors of the plant, the opinion of Professor Archie Cochrane, director of epidemiology at the Medical Research Council, was noted: "In tackling a problem of this nature [mesothelioma] one should either be completely frank with everyone or maintain complete secrecy - it is the latter that he feels is best at the moment."

In 1968, T&N circulated a confidential five-point plan entitled "Putting the Case for Asbestos". Drafted by the international PR firm Hill & Knowlton and designed to enable staff to field questions about asbestos cancer, it began, in capital letters: "Never be the first to raise the health question."

When government departments did raise questions about the safety of asbestos, the Board of Trade intervened, arguing that any suggestion that asbestos presented a danger would damage British jobs. So, the sale of asbestos products continued to grow in the UK throughout the 1960s and 1970s.

T&N also relied on the assistance of Cyril Smith, the larger-than-life Rochdale MP and parliamentary pioneer of the Saturday-night television chat-show sofa. During the summer recess of 1981, Smith wrote to Sydney Marks, the head of personnel, informing him that the House would debate EEC regulations on asbestos in the next parliamentary session.

The letter asks simply: "Could you please, within the next eight weeks, let me have the speech you would like to make (were you able to!), in that debate?"

T&N's draft is almost identical to the speech delivered by the Rochdale MP, stressing the need for less regulation and arguing that substitutes for asbestos should be approached "with caution". "The public at large are not at risk," said Smith. "It is necessary to say that time and time again."

Writing in the local paper, he claimed to have "worked very hard on the speech and have spent hours, both in reading and in being at the works, trying to master the facts about safety in asbestos".

A year later he declared 1,300 shares in the company. Six months after that J B Heron, the chairman of T&N, wrote to Smith again, thanking him for his assistance with the Commons select committee meetings which followed Alice, a Fight for Life, the Yorkshire Television documentary that highlighted the plight of T&N employees.

When last month the New Statesman approached Smith for a comment, he said: "If you've got the documents, it is all true."

 

Some may receive nothing

 

By 1999, the game was up for T&N when the European Union banned the import and production of asbestos throughout the EU. But with the factory's demise came the greatest in justice of all. In the UK, neither T&N nor its insurers faced substantial product liability claims or decontamination costs. Instead, the company was purchased by Federal-Mogul, a US company which later declared Chapter 11 bankruptcy - a status that ring-fenced its compensation liabilities.

With the company protected from its creditors, a UK-based T&N asbestos compensation scheme of just £100m was established by Federal-Mogul's UK administrators.

Those who, like Derek Philips, may have been victims of environmental exposure at T&N's factories may end up receiving little or nothing.

"The hardest thing," says David Cass, a solicitor specialising in compensation for mesothelioma victims, "is having to tell people who walk into my office, 'I won't get you an apology.'"

Who is left to provide one? T&N is now a shell. The civil servants and politicians who failed to regulate the industry are no longer in post; the insurers who took on the liabilities are long retired. They cannot account for their decisions now. But we will live, and many will die, with the consequences.

 

 

 

Asbestos: the killer facts

 

 

 

1

asbestos is the single greatest cause of work-related death in the UK

4,000

number of asbestos-related deaths in the UK in 2005

79

number of teachers who died from mesothelioma between 1991 and 2000

13,000

schools in Britain may have been built using asbestos materials

60

number of years after exposure to fibres it may take for an asbestos-related disease to manifest itself

25%

of victims of mesothelioma work in the building or maintenance industry

2.2 million

tonnes of asbestos were mined worldwide in 2005

Research: Adam Lewitt

 

     

    This article first appeared in the 01 September 2008 issue of the New Statesman, The truth about GM food

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    View from Paisley: How the Conservatives are wooing Labour's Scottish heartlands

    Not so long ago, Conservative activists in Paisley could expect doors slammed in their faces. A referendum has changed that.

    Tony Lawler, a Labour activist, was recently knocking on doors in the Scottish town of Paisley, when he came across a disgruntled resident. “I’m really disappointed in Douglas Alexander,” the potential voter complained. “I haven’t seen him. He used to be in Morrisons.”

    Douglas Alexander, of course, has gone. He was the longstanding Labour MP and onetime International Development secretary who lost his seat in 2015 to a 20-year-old rival, the Scottish National Party’s Mhairi Black. He does not plan to stand again. But when I visit Paisley, a short train ride from Glasgow, I find that memories of him linger on. 

    Two years after Alexander’s defeat, I meet Lawler and other local Labour activists in Morrisons, where Alexander used to hold his surgeries. As checkouts beep and trolley wheels roll over linoleum, they point to an empty table in the corner of this hallowed ground: “He used to sit just there.”

    In 2015, the SNP’s victory in this former manufacturing town seemed to epitomise the earthquake in Scottish politics. But as the Labour activists know too well, no political fortress is undefeatable. And in Paisley, the home of one of the oldest workers’ festivals in the world, the party with the most to gain is one that previously never dared to canvass in the high street – the Conservative party. 

    The town the Brexiteers forgot

    In 1988, the historian Sylvia Clarke reflected on Paisley’s lost industries, wondering what was next for the former weaving towns. “Paisley as a tourist centre?” she wondered, in Paisley: A History. “Paisley as a place for visitors to come to, rather than a send-out of goods and emigrants?” 

    For all Paisley’s industrial decline, it’s a pretty place. The town is in the running for the 2021 City of Culture, and has the second biggest number of listed buildings after Edinburgh. When I visit in the middle of April, blossom floats on the trees, and a river meanders through a neighbourhood of old, stone houses. It takes a moment to notice weeds tightening their grasp on the window frames. When I try the door of the ancient Paisley Abbey, it’s locked.

    Perhaps if Paisley had been located the other side of the border, in Sunderland or Northumbria, it would be voting Leave and flirting with Ukip. But in the most deprived areas here, Labour activists tell me the EU referendum tally was still almost 50-50, and overall the town voted Remain.

    There is a view that Brexit is an English concern. “We haven’t picked up anything about the EU referendum,” says Lawler of his doorstep conversations. “What people are talking about is the independence referendum, Jeremy Corbyn and the kids’ ward.” Scotland’s health secretary, Shona Robison, is due to make a decision on whether the specialist ward should be moved to a large hospital in the First Minister’s Glasgow constituency, against the wishes of many Paisley residents. The hospital in question is nicknamed “the Death Star”.  

    Another concern, reminiscent of small towns across the UK, is the decline of the high street. When I walk down the historical shopping area Causeyside Street, I find mother and daughter Kate and Linda Hancy packing up what remains of The Pattern Café and Gift Shop. The wallpaper is a glorious Paisley print, but the scented candles are in boxes and a spray soap bottle hangs from a chair. After two years of trying, they are closing down.  

    “People just don’t have money to spend,” Kate says. “A lot of people have been on the same wage for more than five years.”

    Linda chimes in: “The cost of living going up but wages aren’t the same. I work in a supermarket, and people come in and say ‘How did I spend this much money?’ A lot of people are paying by credit cards.”

    The Hancys voted to remain in the UK, and the EU. Although they knew Alexander, they have never met Mhairi Black, and feel devolution, if anything, has made politicians less accountable. “Why are we picking 1,2,3,4,” demands Kate, referring to Holyrood's voting system, which rejected first past the post. “Why can’t we pick one like we used to?”

    Without the EU to blame, the most obvious culprits for Paisley town centre’s decline are the out-of-town shopping centres, where cinemas are opening just as historical ones in town close their doors.

    Gavin Simpson, owner of Feel the Groove, a new record shop, remembers the 1980s, when a new release would have shoppers queuing round the block. However, he believes the town is over the worst. (As we speak, a customer comes in to reserve such a record and cheerfully warns Gavin that “even if I ask for my money back, don’t give it to me.”)

    One thriving business is the longstanding butchers, Wm Phelps. Manager James Peacock tells me it is down to the trustworthy Scottish produce, which is carefully tracked and labelled. But the business has also embraced globalisation.  After noticing a large number of South African customers, Peacock began selling boerewors and biltong.

    The other referendum campaign

    If Paisley has been spared the divisions of the EU referendum campaign, its “buddies” – as residents are known – are still reeling with the repercussions of an earlier referendum, that on Scotland in the UK. In 2014, the town voted for independence, although the county overall opted to stay in the UK. 

    The town is home to a particularly brash strain of indyreffers, including the “Smith Commission burners”, three SNP councillors who gathered in front of the council headquarters to burn a copy of the report setting out new powers for Scotland. One of them, Mags MacLaren, went on to manage Black’s constituency office.

    But if the Paisley independence movement has been well covered, less is known about its opposite - the rise of pro-unionism. 

    Of the three mainstream parties opposed to independence, it is the Scottish Conservatives, with their unconventional leader Ruth Davidson, who have most effectively capitalised on the pro-union message. In the 2016 Scottish Parliament elections, the Tory Jackson Carlaw captured the West of Scotland constituency of Eastwood, which had been held by Labour since its creation. 

    In Holyrood, the Scottish Tories benefit from proportional representation, which allows voters to choose a constituency MSP but also rank parties. 

    According to Paul Masterton, the secretary of the Renfrewshire and Inverclyde Scottish Conservative Association, the Conservatives are now getting huge numbers of first preference votes, including in neighbourhoods like the suburb of Ralston, where both Black and Masterton are from. So who are these voters? Masterton describes them as “New Labour voters who were happy with Tony Blair and Gordon Brown but didn’t like Jeremy Corbyn and get tied up into knots by [Scottish Labour leader] Kezia Dugdale flipflopping on the union stance".

    The 2016 election saw the Scottish Conservatives surge to second place in Scotland – a superb comeback for a party once ridiculed as being rarer than pandas. The next electoral test is the local council elections. In Paisley, even Labour activists acknowledged the Conservatives were likely to be the most notable winners.

    “For a long time we simply didn’t go out in Paisley," says Masterton. "We were written off and we allowed ourselves to be written off.”

    But the referendum has changed this. “What I found was that last May, people weren’t shutting the door in your face," he adds. "Once you started the conversation they were far more receptive to that.” 

    Like the Labour activists, Masterton argues that the constitutional question matters more than Brexit. “When Theresa May said ‘now is not the time’, I think a lot of people across Paisley did a small quiet fist pump,” he says of a second independence referendum.  

    Ironically, after the early election is called, the Scottish Conservatives do everything they can to mention the prospect. “Don't mention the 'i' word,” crows a recent press release about the “SNP indyref ban”. Davidson tweets: “Nicola doesn't want to stand on her record. She knows the country doesn't want her #indyref2.” A Panelbase survey commissioned by The Sunday Times Scotland published shortly after the early election was announced finds support for the Conservatives at Scotland at 33 per cent, 18 percentage points higher than in 2015. 

    What you stand for

    For now, Paisley remains a Scottish National Party stronghold. George Adams, the MSP with an office off the high street, proves elusive – Labour activists confirm his reputation as a hardworking local. Black’s aide turns down my request for an interview for similar reasons, but I bump into her that evening at a protest against cutting child tax credits in Glasgow’s George Square.

    Black, an admirer of the left-wing Labour figure Tony Benn, once said she feels "it is the Labour party that left me". I ask her if she, like her Labour predecessor, holds surgeries in supermarkets. Black says she’d considered it, but given the sensitivity of some of the issues, such as benefit problems, she thought her constituents might appreciate a more private space. “The main thing that crosses the door in my offices is Universal Credit changes,” she explains. She says she has raised her concerns about the children’s ward.

    As for the independence debate, she argues that the Scottish government have been “incredibly compromising” since Brexit, but adds: “A lot of folk want another chance at the question.”

    Black is standing for re-election. With a majority of more than 5,000, and neither of her previous challengers in the running, she’s likely to keep her seat, even if buddies' discontent over local issues rumbles on. 

    Still, as I have discovered, the 2014 referendum continues to reverberate in towns like Paisley. It has divided friends and neighbours on constitutional lines, galvanised new strains of politics, and brought a Labour heavyweight crashing down, with no appetite to return. 

    The Tories believe their unionist message is enough to flip seats like East Renfrewshire, once Conservative, then Labour, and now an SNP marginal. Could Paisley, with its long tradition of the left, one day follow? It no longer feels implausible. “The one thing about the Scottish Conservatives - and this is true whatever you like us or not,” says Masterton. “You know what we stand for.”

     

    Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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