Daschle, labor nix U.S. asbestos fund proposal

WASHINGTON, Oct 17 (Reuters) - Democrats and labor said on Friday that a proposed $114 billion fund for asbestos victims was too small and had no chance in the Senate, darkening prospects for an asbestos deal passing Congress this year.

"It won't be passed if this is the final offer," Senate Democratic Leader Tom Daschle said of the asbestos fund agreed to by insurers and asbestos companies and announced earlier this week by Senate Republican Leader Bill Frist.

The $114 billion fund proposal was "grossly inadequate" and "will clearly make it impossible to achieve a consensus resolution of any kind this year," said AFL-CIO President John Sweeney.

Republicans hoped the fund agreement would revive stalled legislation to end asbestos lawsuits and establish a fund to pay claims of people sickened by the mineral. Insurers and asbestos companies agreed to financing for the fund this week.

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