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Nauru Phosphate Royalties (Payment and Investment) Ordinance 1968

TERRITORY OF NAURU

NAURU PHOSPHATE AND ROYALTIES
(PAYMENT AND INVESTMENT) ORDINANCE 1968
(No. 5 of 1968)

AN ORDINANCE

Relating to Phosphate Royalties.

SHORT TITLE.

1. This Ordinance may be cited as the Nauru Phosphate Royalties (Payment and Investment) Ordinance 1968.

DEFINITIONS.

2. - (1.) In this Ordinance, unless the contrary intention appears -

"fund" means a fund established by this Ordinance;

"the Agreement" means the Agreement, a copy of which is set out in the Schedule to the Nauru Phosphate Agreement Ordinance 1968;

"the commencing day" means the day on which this Ordinance comes into operation;

"the Commissioners" means the British Phosphate Commissioners;

"the net proceeds" means the net proceeds of phosphate operations at Nauru, being the proceeds referred to in clause 16 of the Agreement.

(2.) A reference in this Ordinance to an account known by a specified name shall be read as a reference to an account kept in the books of the Council of moneys of the Council allocated by the Council for the purposes of the Fund having that specified name.

APPLICATION OF THE NET PROCEEDS.

3. - (1.) Moneys received by the Council on account of or representing the net proceeds shall be taken not to be moneys collected or received by the Council or by or on behalf of the Council for the purposes of section 51 of the Nauru Local Government Council Ordinance 1951 - 1967.

(2.) Moneys received by the Council on account of or representing the net proceeds may be expended or applied by the Council in accordance with this Ordinance, but not otherwise.

NAURU ROYALTY FUND.

4. - (1.) A fund is hereby established, to be known as the Nauru Royalty Fund.

(2.) Moneys standing to the credit of the Nauru Royalty Fund may be expended by the Council for any of the purposes for which the Council is authorised by the Nauru Local Government Council Ordinance 1951 - 1967 to expend moneys, but not otherwise.

(3.) The Council shall pay into the Nauru Royalty Fund an amount equal to the moneys standing to the credit of the account known as the Nauru Royalty Trust Fund on the commencing day.

NAURU DEVELOPMENT FUND.

5. - (1.) A fund is hereby established, to be known as the Nauru Development Fund.

(2) Moneys standing to the credit of the Nauru Development Fund shall not be expended otherwise than in promoting the economic development of Nauru.

(3.) The Council shall pay into the Nauru Development Fund an amount equal to the moneys standing to the credit of the account known as the Nauru Development Fund on the commencing day.

NAURU HOUSING FUND.

6. - (1.) A fund is hereby established, to be known as the Nauru Housing Fund.

(2.) Moneys standing to the credit of the Nauru Housing Fund shall not be expended by the Council otherwise than in erecting, repairing or maintaining houses in Nauru.

(3.) The Council shall pay into the Nauru Housing Fund an amount equal to the moneys standing to the credit of the account known as the Nauru Housing Trust Fund on the commencing day.

NAURU REHABILITATION FUND.

7. - (1.) A fund is hereby established, to be known as the Nauru Rehabilitation Fund.

(2.) Moneys standing to the credit of the Nauru Rehabilitation Fund shall not be expended otherwise than for the purpose of restoring or improving the parts of the Island of Nauru that have been affected by mining for phosphate.

(3.) The Council shall pay into the Nauru Rehabilitation Fund an amount equal to the moneys standing to the credit of the account known as the Rehabilitation Fund on the commencing day.

BANK ACCOUNTS.

8.- (1) The Council shall open and maintain an account with a bank in respect of each of the funds established by this Ordinance.

(2.) The Council shall pay all moneys received by it, or allocated by it, for the purpose of a fund into the account opened in respect of that fund in accordance with the last preceding sub -section.

INVESTMENT OF MONEYS IN A FUND.

9.- (1) Moneys standing to the credit of a fund not immediately required for the purpose of the fund may be invested-

(a) in securities of, or guaranteed by, the Commonwealth or a State;

(b) on fixed deposit in a bank; or

(c) in such other manner as the Administrator in Council approves.

(2.) Interest on the investment of moneys standing to the credit of a fund forms part of that fund.

PAYMENTS INTO A FUND.

10.- (1) Where the Council receives moneys or allocates moneys of the Council for the purpose of a fund, the Council shall pay those moneys into that fund.

(2.) For the purposes of the last preceding sub - section, payment of moneys into the account opened in accordance with section 8 of this Ordinance in respect of a fund shall be deemed to be payment of the moneys into that fund.

THE NET PROCEEDS OF PHOSPHATE OPERATIONS.

11.- (1) Subject to the next succeeding sub - section, the Council shall determine in what proportion the net proceeds shall be allocated to -

(a) the funds established by this Ordinance;

(b) the Nauruan Community Long Term Investment Fund;

(c) the Nauruan Land Owners Royalty Trust Fund;

(d) the owners of phosphate bearing land leased to the Commissioners; and

(e) other purposes determined by the Council.

(2.) A determination of the Council under the last preceding sub - section is of no force or effect unless it provides for the allocation of part of the net proceeds to each of the Funds referred to in paragraphs (a), (b) and (c) of that sub-section and part of the net proceeds to the owners of phosphate bearing land leased to the Commissioners.

(3.) Moneys received by the Council representing, or on account of, the net proceeds shall not be expended by the Council otherwise than in accordance with an allocation of the net proceeds made, or to be deemed to be made, under subsection (1.) of this section, and an authorisation by Council to the Commissioners for the payment of any moneys representing the net proceeds otherwise than in accordance with such an allocation is of no force or effect.

(4.) Unless the Council otherwise determines and subject to sub-section (7.) of this section, the Council shall, for each ton of phosphate shipped from Nauru, be deemed to have allocated from the net proceeds-

(a) for the purpose of-

(i) the Nauruan Community Long Term Investment Fund - One dollar and seventy cents;

(ii) the Nauruan Land Owners Royalty Trust Fund - Fifty cents;

(iii) the Nauru Royalty Fund - Ten cents;

(iv) the Nauru Development Fund - Sixty cents;

(v) the Nauru Housing Fund - Eighty cents; and

(vi) the Nauru Rehabilitation Fund - Twenty cents; and

(b) for payment to the owners of phosphate bearing lands leased to the Commissioners - Sixty cents.

(5.) Where the Council is to be deemed to have allocated the amounts from the net proceeds for the purposes specified in the last preceding sub - section, the Council shall be deemed to have allocated the balance of the net proceeds remaining after payment of those amounts for the Fund established under the Nauru Local Government Ordinance 1951-1967 and known as the Nauru Local Government Council Fund.

(6.) Where the net proceeds are to be deemed to have been allocated in accordance with the last two preceding sub - sections, they shall be deemed to have been allocated by the Council under sub - section (1) of this section in proportions determined by the Council, being such proportions as are necessary to enable payment to be made in accordance with those allocations.

(7.) Where, in a case where the Council has not made a determination in respect of the net proceeds for a period, the moneys payable to the Council representing, or on account of, the net proceeds in respect of the period are insufficient to enable the payments provided for in sub - section (4.) of this section to be made out of those moneys in respect of phosphate shipped during the period, this section applies in respect of those moneys as if sub-sections (4.), (5.) and (6.) of this section were omitted.

PAYMENT BY THE COMMISSIONERS.

12.- (1) Where the Commissioners, in accordance with an authorisation by the Council, pay moneys representing the net proceeds to the account opened in respect of a fund in pursuance of section 8 of this Ordinance, those moneys shall be deemed to have been moneys of the Council received by it representing the net proceeds and allocated by it for the purpose of the fund.

(2.) Where the Commissioners, in accordance with an authorisation by the Council, retain moneys representing the net proceeds and apply the moneys so retained in payment of amounts payable by the Council under the clause 8 of the Agreement, those moneys shall be deemed to have been moneys of the Council received by it representing the net proceeds and allocated by it for payment to the Commissioners on account of moneys payable by the Council under that clause.

PAYMENT OF ROYALTIES TO LAND OWNERS.

13.- (1) The moneys representing the part of the net proceeds that is allocated for payment to the owners of phosphate bearing land leased to the Commissioners shall be divided among those owners in the proportion that the quantity of phosphate mined from land of each owner bears to the total quantity of phosphate mined from land during the period to which those net proceeds relate.

(2.) Where the Commissioners, in accordance with an authorisation by the Council, pay moneys representing the net proceeds to the owners of phosphate bearing land leased to the Commissioners, the moneys so paid shall be deemed to have been moneys of the Council received by it representing the net proceeds and allocated by it for payment to those land owners.

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