I'm sure you'll get inundated! That is an iconic an pivotal Oils lyric set.
There is an extensive rhetorical essay at in the start of an Oils book - the old sheet music book I think - describing the painful influences described in that song. I'll try to scan it if no-one else offers it up.

Unless my brain has stopped, the core story is that a paint factory was letting its very poorly filtered effluent directly into the town's river.
Found this on Google:

http://www.kab.org.au/_dbase_upl/070925%20Fin%20pr.pdf
""""
Media Release
Monday 24 September 2007
Finalists in the Australian Sustainable Cities Awards announced today
...
TAS - City of Burnie
Contact Rodney Greene on 03 6430 5715
In the mid 1980’s Burnie received national attention following a media article describing
Burnie as “Australia’s Dirtiest Town”. This was followed by a Midnight Oil song highlighting
Burnie’s dirty industrial status, using the image of polluted beaches from a paint pigmentation
plant and smoke stacks spewing sulphur fumes. Burnie has now moved on. The paint
pigment factory has closed, and the remediation of the site has received national and
international acclaim. Part of the site is now ear-marked to become one of Australia’s first
eco-residential developments. The changes to the city and its environment have resulted in
Burnie being Tasmania’s Tidiest Town 2000 and 2005."
"""


on 16/01/08 13:25 Dayne Dale said the following:

I'm trying to figure out what "Burnie" is about...obviously it has
something to do with the town in Tasmania, but from the lyrics I can't
paint a picture of what the song is about.

Could someone please help?!...