Lawyers representing residents in Oakey say they have the final clearance to commence a class action against the Department of Defence.

About 450 residents are demanding financial compensation for their dwindling property prices, because of contaminated groundwater emanating from a Defence base next to the Darling Downs town.

Some residents are steering clear of the action and say repeated publicity about the contamination is causing the town’s reputational damage.

The class action has been in the pipeline for some time after revelations some sections of Oakey’s groundwater had been contaminated with toxins PFOS and PFOA, which are used in firefighting foam at the nearby Oakey Army Aviation Centre.

Bradley Hudson, one of hundreds of Oakey residents commencing a class action against the department of defence, is a business owner who wants compensation for his property devaluation.

“My property … probably in its heyday would have been worth something like three-quarters of a million dollars. Now not sure what I’ll get for it,” Mr Hudson said.

“If we get the property one (class action) up, we get compensated or shifted on, then that will help our health concerns too with PFOS and PFOA by being able to move off a contaminated block.”

Shine Lawyers, which is leading the litigation, said it has secured unconditional funding support for the action from company IMF Bentham Limited.

“We’ve now convinced them that there are enough people and large enough claim for that to be the case and they said, ‘OK, we’re on board’,” legal principal Peter Shannon said.

Mr Shannon said 350 properties and businesses — or about 450 people — are taking part in the action. Oakey’s population is in excess of 4,500 people.

“Not everyone commits until they know it’s happening for sure, so [we’re] very pleased with the result and we now expect more to join,” Mr Shannon said.

Government reports find no strong link between the toxins and human health risks

The Federal Government’s public reports into PFOS and PFOA have said there is no strong link to human health risks.

But Mr Shannon said many residents, including Mr Hudson, are using the action to help alleviate their health concerns.

“The health impacts are very relevant to that because that’s the concern and the anguish that people feel that effects values,” he said.

“We’ve been agitating for the monitoring of blood. Defence is doing some ongoing monitoring which will help when health issues are clarified.”

But both Mr Shannon and other residents PM spoke to — who did not want to go on the record — said the town is very divided over the class action.

Tracey Tierney from Oakey Real Estate said she was gutted by the class action.

“I don’t think people realise what they’re signing up for,” she said.

“I think there’s going to be a lot of heartache by the time it finishes and I think they’re going to be waiting a long time.

“No-one wants the contamination. We all realise it is there. We all realise that people need to move on with their lives, but it’s just been held up unfortunately by mad media.”

She also does not believe property prices have dropped.

“I believe the market has stopped, things aren’t selling and that’s because of what Oakey is facing through media channels and lending institutions.”

Williamtown, north of Newcastle, also lodged a class action against defence over contaminated groundwater.

Mr Shannon said he had also been approached by residents from other affected towns, including Tindal near Katherine, the Gold Coast and Townsville.

The Department of Defence said it could not comment at this stage, as it had not yet been formally notified that the class action had commenced.