Billion-dollar class action prepared over Paradise Dam construction failure

The State Government is facing legal action from thousands of farmers over the failed construction of a Queensland dam, with a multibillion-dollar class action expected to be filed in the coming weeks.

Bundaberg farmers have opened up a new front in their war with the State Government over the Paradise Dam debacle with a multi billion dollar class action representing 2,500 claimants expected to be filed in the next few weeks.

Built between 2003 and 2005 under a Labor Government, Paradise Dam was found to have serious structural problems in a State Government inquiry earlier this year and has been described by Federal LNP Senator James McGrath as “the biggest infrastructure failure in Australian history.’’

The dam wall is set to be lowered because of concerns about the dam’s structural integrity meaning the dam’s capacity will be severely reduced angering local farmers, some of whom bought land in the area on the understanding they had access to irrigation water.

Farmers say problems at Paradise Dam not properly diagnosed

Paradise lost: The true cost of Qld dam fail

Report shows ‘litany of issues’ with Paradise Dam

The Paradise Dam was completed in 2005, but was found to have structural problems.

The class action comes as the State Government faces another expensive payout following a New South Wales Supreme Court finding against it regarding a class action seeking damages out of the 2011 floods.

Bundaberg-based Marland Law Agribusiness and Advisory, which is representing the growers, said it launched the class action “with great regret and frustration.’’

“Hard working farmers and business owners of the Bundaberg region have been battling since September last year for common sense to prevail over the management of Paradise Dam,’’ Marland Law said.

“Sadly, despite all of their best efforts the dam wall is currently being reduced.

“With it goes the water security and reliability that makes Bundaberg the food bowl of the nation -putting at risk 25 per cent f Australia’s fresh produce production.

The capacity of the Paradise Dam is being reduced because of structural integrity concerns.

Marland said $1 billion dollars of agricultural production per annum has been placed at risk at a time when watersecurity and food security should be treasured.

“The farmers of Bundaberg who have invested hundreds of millions of dollars into producing food for the nation deserve better.

“The taxpayers of Queensland who rely on fresh, clean and green food also deserve better.

“The losses to Bundaberg farmers will be in the billions.

“The losses to the great state of Queensland will be much greater.

“However, we have been left with no other choice than to instigate a class action to seek to recoup the hundreds of millions of dollars of lost investment and the billions of dollars of lost opportunity that will occur as a result of the loss of Paradise Dam.

“We will be filing proceedings in the Supreme Court of Queensland on behalf of the 2500 farmers and irrigators impacted by the loss of Paradise Dam.

“The claim will be in the billions much greater than the cost to actually fix the dam and secure the future of our region and also the future of our state.’’