THE Treasurer, Peter Costello, has lashed out at the board of James Hardie for awarding itself a pay rise while the compensation claims of asbestos victims remained unresolved and the company was seeking to avoid its tax liabilities. "I think this is a company which has deep-seated governance problems," Mr Costello said. "It has a bad culture." James Hardie is based in the Netherlands and, on Monday night, its board members awarded themselves a $1.1 million pay rise.