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Newcastle Herald
Newcastle Herald

$137m settlement for landowners after PFAS contamination

A sign along Nelson Bay Road at Salt Ash in 2018 after contaimination was found. Picture by Marina Neil

THOUSANDS of landowners around Australia whose properties were contaminated by firefighting foam used on air force bases have secured a multi-million dollar payout.

Parties reached an in-principle, binding agreement at the weekend for a sum of $132.7 million, covering about 30,000 landowners near seven sites claiming to be affected by toxic PFAS chemicals in the foam.

The settlement announced in the Federal Court on Monday still requires final approval from a judge.

Prime Minister Anthony Albanese welcomed the settlement, saying many people from a range of communities had suffered from the use of the toxic foam.

"We have to get occupational health and safety right ... in the first place - that would avoid these sort of actions," he told reporters in Adelaide.

"The biggest concern that I have with PFAS isn't, of course, a financial one - it is the health outcomes of people who are affected by it."

Members of the class action will be issued further details about the settlement as it approaches approval.

The Commonwealth did not adequately prevent toxic chemicals in the foam from escaping and contaminating soil and groundwater, the suit alleged.

It has not admitted liability in the terms of the settlement.

News of the agreement was emailed to the court at about 12.10am on Monday.

The so-called "forever chemicals", which accumulate in the body and do not naturally degrade, are linked to cancers, birth defects and diseases.

The agreement covers sites near Royal Australian Air Force bases at Richmond and Wagga Wagga in NSW, Bullsbrook in Western Australia, Darwin in the Northern Territory, Edinburgh in South Australia, Townsville in Queensland and Wodonga in Victoria.

The Department of Defence previously agreed to pay landholders in Katherine (NT), Oakey (Queensland) and Williamtown (NSW) in a 2020 settlement worth $212.5 million.

Shine Lawyers joint head of class actions Craig Allsopp hailed the agreement as "a good outcome for all members", saying it would avoid the cost of a risky trial.

"It means they will get money to compensate them for the loss," he told reporters.

He acknowledged many were still stuck on contaminated land and said the amount each victim received would "depend on the circumstances of each site".

When asked if there was enough in the kitty to compensate everyone for the damage caused he replied in the affirmative.

"We're of the view that it will be but ... the most important protection for group members is this has to go before the court."

Justice Michael Lee will review the settlement to ensure it is fair and reasonable for all group members.

The settlement did not contain an admission of liability but he said that was typical of a class action.

Another case involving Wreck Bay Aboriginal Community Council has been adjourned for further mediation.

Justice Lee said the parties have had plenty of time to settle it and a trial will begin on May 29 if they cannot.

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