ABC news program Stateline ran a story in March about 'Mr Fluffy', a Canberra asbestos contractor in the 1960s and 70s who installed the grey asbestos, called ‘amosite', as roof insulation.

The dust-like loose asbestos was removed from about 1000 Canberra homes in the 1980s at a cost of $100 million, funded by the ACT and Commonwealth Governments. Sixty houses in Queanbeyan did not receive such funding, however, and activists are still fighting two decades later to have the product removed.

"This is the only place in the world - and that's literally the whole world - where we were able to find somebody who had the bright idea of crushing it up into a pulp to make pure asbestos and pumping it to settle by gravity onto the roof spaces," former ACT Asbestos Removal Program head Keith McKenry told Stateline.

"So as far as we are aware ... the bloke we're calling Mr Fluffy, Mr Jansen, is the only person in the world ever to do this - the problem is unique to the Canberra region."

When former Batehaven resident Piers Booth contacted Stateline after viewing the show, he made the stunning revelation that the fluff had made its way to the Bay in the worst way possible - in the trailers of residents who installed the insulation themselves.

Mr Piers Booth claimed a local real estate agent, Jack Parker, had suggested using Mr Fluffy, who gave them sacks of the material for the residents to spread around the roof space with their hands.

"The Queanbeyan residents and the Canberra residents...were protected from it as long as they didn't go into the roof space, but in this case, because we were actually spreading it around...we were in direct contact with it and of course some of the fibre would have gone into the house and so it would have affected our families as well," Mr Booth told Stateline.

When contacted by the program, the present owners of the house said they had removed the product a decade ago by stuffing it into plastic bags and taking it to the tip, completely unaware that the substance was dangerous.

Unlike most embedded asbestos products used in many older Bay homes, the 100 per cent pure, loose fibre asbestos is easily airborne and one of the most dangerous types of asbestos.

Mayor Thomson told the Bay Post the news of loose fibre asbestos insulation in the Batehaven home was shocking.

"The concerns of residents are obvious, however, the State Government has no legislation in place to guide home owners in managing asbestos hazards," Cr Thomson said.

"I intend to write to the State Government and let them know of my concerns and find out what can be done to assist these people."

Mr Constance said it was still unclear just how many houses in the Eurobodalla and South Coast might contain the asbestos fluff.

"What I'm calling for is the State Government to provide assistance to remove this most dangerous form of asbestos," he said.

"There seems to be on the face of it a lack of government guidelines to help local councils in developing procedures for dealing with asbestos."

Mr Constance said he would be happy to try to assist affected residents, while Cr Thomson said the council could aid concerned residents by putting them in touch with private consultancies specialising in assessing asbestos hazards.