Qld council seeks $2.5m from Palmer firms

Sonia Kohlbacher

A Queensland council is pursuing two of Clive Palmer's companies in court seeking millions owed in rates and water charges.

The Townsville City Council is taking legal action against QNI Metals Pty Ltd and QNI Resources Pty Ltd for more than $2.5 million.

Rates and charges relating to land where Queensland Nickel's Yabulu refinery sits and a property at Black River haven't been paid by those companies since 2016, a council spokesman said on Thursday.

"Not only is this frustrating, it is also unfair for the thousands of other land owners across Townsville who paid their rates and water charges as required, including those who paid despite their property suffering damage in the devastating monsoon event earlier this year," he said.

Protracted efforts to recover the funds began in 2016.

Queensland Nickel claimed the value of the land on which the rates were calculated was incorrect, however, the value has been upheld.