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The Gladstone council in central Queensland says the State Government is giving haulage firm Aurizon a leg-up by exempting it from paying council rates.
Council chief executive Stuart Randle says under the Local Government Act, owners of rail corridors do not have to pay rates on the land.
He says says the clause should have been amended when Aurizon, formerly QR National, was privatised.
"I suppose in a way it's anti-competitive that they don't have to pay rates, but other companies who might be involved in the logistics and freight business do have to pay rates," he said.
"They've got a $10 billion balance sheet, so they're not by any stretch of the imagination a small, struggling, family-owned company.
"They're a very large public company who should be treated the same as anyone else would."
This article first appeared on www.abc.net.au
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