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Nauru Phosphate Royalties (Payment and Investment) Ordinance Amendment Act 1968

REPUBLIC OF NAURU

NAURU PHOSPHATE ROYALTIES (PAYMENT AND INVESTMENT)
ORDINANCE AMENDMENT ACT 1968
(No. 6 of 1968)

ARRANGEMENT OF SECTIONS

Section

1. Short title and citation
2. Commencement
3. Repeal and replacement of section 2 of the principal Ordinance
4. Repeal of section 3 of the principal Ordinance
5. Amendment of section 4 of the principal Ordinance
6. Amendment of section 5 of the principal Ordinance
7. Amendment of section 6 of the principal Ordinance
8. Amendment of section 7 of the principal Ordinance
9. Repeal and replacement of section 8 of the principal Ordinance
10. Repeal and replacement of sections 9, 10, 11, 12, 13 and 14 of the principal Ordinance

First Schedule
Second Schedule

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AN ACT

To amend the Nauru Phosphate Royalties (Payment and Investment) Ordinance 1968.

(Certified: 14th June, 1968)

Enacted by the Parliament of Nauru as follows:

SHORT TITLE AND CITATION

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

(2) The Nauru Phosphate Royalties (Payment and Investment) Ordinance 1968 is this Act referred to as the principal Ordinance.

(3) The principal Ordinance as amended by this Act, may be cited as the Nauru Phosphate Royalties (Payment and Investment) Act 1968.

COMMENCEMENT

2. This Act shall come into force on the First day of July, 1968.

REPEAL AND REPLACEMENT OF SECTION 2 OF THE PRINCIPAL ORDINANCE

3. Section 2 of the principal Ordinance is repealed and the following section is inserted in its place:

"2. In this Act, unless the contrary intention appears -

"fund" means a fund established by this Act;

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

"the Corporation" means the Nauru Phosphate Corporation provided for in the Agreement;

"the Council" means the Nauru Local Government Council; and

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

REPEAL OF SECTION 3 OF THE PRINCIPAL ORDINANCE

4. Section 3 of the principal Ordinance is repealed.

AMENDMENT OF SECTION 4 OF THE PRINCIPAL ORDINANCE

5. Section 4 of the principal Ordinance is amended by omitting sub-section (3) and inserting the following sub-section in its place:

"(3) The Nauru Royalty Fund is vested in the Council."

AMENDMENT OF SECTION 5 OF THE PRINCIPAL ORDINANCE

6. Section 5 of the principal Ordinance is amended-

(a) by omitting from sub-section (2) the words "shall not be expended" and by inserting the words "shall not be expended by the Council" in their place; and

(b) by omitting sub-section (3) and by inserting the following sub-section in its place:

"(3) The Nauru Development Fund is vested in the Council.".

AMENDMENT OF SECTION 6 OF THE PRINCIPAL ORDINANCE

7. Section 6 of the principal Ordinance is amended-

(a) by omitting sub-section (2) and by inserting the following sub-section in its place:

"(2) Moneys standing to the credit of the Nauru Housing Fund shall not be expended otherwise than in erecting, repairing, or maintaining houses in Nauru and in accordance with law." and

(b) by omitting sub-section (3) and by inserting the following sub-section in its place:

"(3) The Nauru Housing Fund is vested in the Republic."

AMENDMENT OF SECTION 7 OF THE PRINCIPAL ORDINANCE

8. Section 7 of the principal Ordinance is amended-

(a) by omitting from sub-section (2) the words "mining for phosphate" and by inserting the words "mining for phosphate and in accordance with law" in their place; and

(b) by omitting sub-section (3) and inserting in its place:

"(3) The Nauru Rehabilitation Fund is vested in the Republic."

REPEAL AND REPLACEMENT OF SECTION 8 OF THE PRINCIPAL ORDINANCE

9. Section 8 of the principal Ordinance is repealed, and the following section is inserted in its place:

"8. (1) A fund is hereby established, to be known as the Nauruan Land Owners Cash Royalties Fund.

(2) Moneys standing to the credit of the fund shall not be used by the Council otherwise than for the purpose of paying royalties to the owners of phosphate bearing land.

(3) The Nauruan Land Owners Cash Royalties Fund is vested in the Council."

REPEAL AND REPLACEMENT OF SECTIONS 9, 10, 11, 12, 13 AND 14 OF THE PRINCIPAL ORDINANCE

10. Sections 9, 10, 11, 12, 13 and 14 of the principal Ordinance are repealed and the following sections are inserted in their place:

"BANK ACCOUNTS

9. (1) The Council shall open and maintain an account with a bank in respect of each of the funds established by this Act and vested in it.

(2) The Council shall pay all moneys received by it for the purpose of a fund into the account opened in respect of that fund.

(3) Payment of moneys into an account opened in accordance with this section in respect of a fund shall be deemed to be payment of the moneys into that fund.

INVESTMENT OF MONEYS IN A FUND

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

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

(b) by fixed deposit in a bank; or

(c) any such other manner as Cabinet approves.

(2) Income earned from the investment of moneys standing to the credit of a fund forms part of that fund.

PAYMENT INTO FUNDS

11. (1) (a) The Republic shall pay into each of the funds specified in the first column of the First Schedule to this Act, in respect of each ton of phosphate shipped from Nauru, the amount specified in the second, third and fourth columns to that Schedule:

(b) This sub-section shall be deemed to have had effect as from the 1st day of July, 1968.

(2) The payments provided for in the last preceding sub-section shall be made-

(a) with respect to the amounts in the second and third columns of the First Schedule, as soon as practicable after the commencement of this Act.

(b) with respect to the amounts in the fourth column of the First Schedule, as soon as practicable after the receipt of net -proceeds and the Treasury Fund is charged accordingly.

(3) (a) The Corporation shall pay into each of the funds specified in the first column of the Second Schedule to this Act in respect of each ton of phosphate shipped from Nauru, the amount specified in the second, third and fourth columns to that Schedule.

(b) This sub-section shall be deemed to have had effect as from the 1st day of July, 1968.

(4) The payments provided for in the last preceding sub-section shall be made-

(a) with respect to the amounts in the second and third columns of the Second Schedule as soon as practicable after the commencement of this Act.

(b) with respect to the amount in the fourth column of the Second Schedule as soon as practicable after the receipt of net proceeds.

(5) The amount per ton in the second, third and fourth columns of the Schedules of this Act is the amount to be paid in respect of the funds in the first column of the Schedules for the period specified at the head of each of the second, third and fourth columns respectively.

(6) The Minister shall as soon as practicable after the commencement of this Act pay from the Nauru Housing Fund to the Corporation any monies which have been paid to the fund in excess of the amount specified to be paid in the fourth column of the First Schedule.

(7) Notwithstanding anything to the contrary in any Act or Agreement the Corporation shall as soon as practicable after the commencement of this Act pay to the Republic from proceeds accumulated from the sale of phosphate the amount of money required by the Republic to pay the amounts specified in the third column of the First Schedule and the amounts specified in the fourth column of the First Schedule for the period ending the 30th day of September, 1978.

(8) Notwithstanding anything to the contrary in any other Act or Agreement the Corporation shall pay to the Republic such amounts as may be required by the Republic to pay the amounts specified in the fourth column of the First Schedule such payments shall be made as soon as practicable after the receipt of the net proceeds.

PERIODIC REVIEW OF PAYMENTS

12. (1) In this section "year of review" means the year 1970 and every third year thereafter.

(2) During each year of review the Council may agree with the Cabinet to alter the amount payable under the last preceding section to a fund specified in the first column of the Second Schedule.

(3) Where agreement is reached under the last preceding sub-section the Cabinet shall, by notice in the Gazette and in accordance with that agreement fix the amount to be paid into that fund in respect of each ton of phosphate shipped from Nauru on or after the first day of July in that year and the Corporation shall pay the amount so fixed into that fund until the amount payable is again altered in accordance with this section.

SAVING

13. Until the Corporation is established, the British Phosphate Commissioners shall make the payments provided for in section 11 of this Act into the funds specified in the Second Schedule to this Act before the payment of net proceeds.

PAYMENTS OF ROYALTIES TO LAND OWNERS

14. (1) The owners of phosphate bearing land shall be paid from the Nauruan Land Owners Cash Royalties Fund an amount calculated by multiplying the number of tons of phosphate mined from their land and shipped from Nauru by the rate per ton at which contributions were made to the fund at the time the phosphate was shipped.

(2) The Council shall make the payments to land owners provided for by this section as soon as practicable after the phosphate extracted from that owner's phosphate bearing land is shipped.

(3) The Council may authorise the Corporation or, until the Corporation comes into existence the British Phosphate Commissioners, to pay the amounts calculated in accordance with the last preceding sub-section to the owners of phosphate bearing land and the amounts so paid shall be deemed to have been paid into the fund and then paid by the Council to those land owners pursuant to this section."

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FIRST SCHEDULE

SECOND SCHEDULE

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