Compensation for bushfire started by Defence needs to be settled: Barry O'Farrell

NSW Premier Barry O'Farrell will discuss with Tony Abbott the issue of compensation following the huge bushfire started by a military training exercise.

NSW Premier Barry O'Farrell

NSW Premier Barry O'Farrell says he will discuss with Tony Abbott the issue of compensation following the huge bushfire started by a military training exercise.

Defence has apologised for the massive State Mine fire near Lithgow, which was sparked by a military explosives exercise last week on the Marrangaroo training range.

The fire, the biggest of the blazes during the past week's NSW bushfire crisis, destroyed several homes and burned through nearly 50,000 hectares of land. It is still burning.

Mr O'Farrell said he would soon discuss the State Mine fire and any potential Commonwealth liabilities with the Prime Minister.

“Clearly at least seven or so homes were lost as a result of that fire,” Mr O'Farrell told reporters at the Winmalee Fire Station in the Blue Mountains.

“We need to see what's going to be done ... we need to settle the compensation issues.”

Mr O'Farrell said it was appropriate the Defence Department had offered an apology to fire victims.

He said he never wanted to see a repeat incident.

Acting Chief of Defence, Air Marshal Mark Binskin, said yesterday the decision to go ahead with a training exercise which sparked the fire was made on a day of light winds and 23C temperatures. No fire ban was in place.

Firefighters are today working to strengthen containment lines around three blazes still burning in the Blue Mountains in easing weather conditions.

The Rural Fire Service still has “watch and act” alerts for the blazes burning at Springwood, Mt Victoria and Lithgow, which have now burnt through almost 60,000 hectares of bush since sparking late last week.

“The threat is continuing to ease but we're still asking people to be vigilant because there is such a large amount of fires still active,” an RFS spokeswoman said.

There are more than 800 firefighters in the field and 72 aircraft deployed.

More than 120,000 hectares of bush has so far been burnt across NSW since the crisis began last Thursday.

AAP