During dredging divers discovered an old bomb lying at the bottom of the harbour, but continued to dredge. Then more were found and it reached the stage where WorkSafe ordered dredging to stop until the harbour was deemed safe.
The Port Authority submitted to the Commonwealth Government that as the ordnance were from World War II and it was known that they were dropped by soldiers in clearance exercises in October 1947 and March 1948, the Port wanted the Commonwealth to compensate it for the removal of the munitions and for other associated costs.
After 14 expert reports written on the bombs, four attempts at mediation and two expert meetings held over the next seven years, the Supreme Court was critical of the Commonwealth’s manner of defending the action taken against it.
A range of munitions, including seven artillery shells, were removed.
In June 2007 the Commonwealth agreed to pay the Port $5.25 million for past and future dredging and clean-up costs, and $1 million for legal costs.