A dog described as a mastiff or bull terrier breed was seized by Hilltops council after attacking another dog on Back Creek Road on Thursday afternoon.
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Disaster was averted when an off-duty police officer restrained the dog before council staff and police officers responded about 3.15pm.
One witness, who asked to remain anonymous, said the situation could have been worse if it wasn't for the passerby's quick response.
"I can't believe how he had it pinned and it was trying to go him. I was terrified for the kids. It was really scary for anyone who saw it," the witness said.
Police say the bull terrier/mastiff left its chain and escaped the front yard of a home.
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It allegedly attacked a spaniel-breed dog which was being walked on a lead by a woman and her son.
It took the off-duty officer and woman "significant effort and force to separate the dogs", police say.
The owner of the dog attended and removed the dog.
The off-duty officer suffered an injury to his hand, while the the injured dog suffered puncture marks in her chest, red markings to her sides and an injured leg. She was initially unable to walk but has since regained use of her legs and is moving.
Council in a statement say they will be "taking appropriate regulatory action in accordance with the requirements of the Companions Animals Act".
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