New South Wales Consolidated Regulations

FISHERIES MANAGEMENT (AQUACULTURE) REGULATION 2007 - REG 19

19 Class A and B permit holders to enter into financial arrangement to provide security

(1) It is a condition of every class A or class B permit that the permit holder must enter into, and maintain, one of the following arrangements:

(a) the depositing with the Minister by the permit holder of the required amount of cash to secure the due performance of the permit holder’s payment obligations under the Act,

(b) a guarantee issued by an authorised deposit-taking institution, or by a corporation authorised to carry on insurance business in Australia, indemnifying the Crown to the extent of the required amount to secure that performance,

(c) a financial arrangement approved by the Minister under which a corporation of which the permit holder is a member agrees with the Minister to indemnify the Crown to the extent of an amount specified in the agreement to secure that performance.

(2) However, a class A permit holder of a class 1 lease (as referred to in clause 30) may decide not to enter into, or to cease, an arrangement under subclause (1). In that case, the permit holder is taken to have entered into a financial arrangement for the payment of annual contributions as provided by Division 3 and that arrangement is taken to be a condition of the permit.

(3) A permit holder may choose which kind of arrangement is to be entered into under subclause (1), and may, with the concurrence of the Minister, change the chosen arrangement to another arrangement at any time while the permit is in force.

(4) For the purposes of this clause, the required amount is $1,000 for each hectare (or part of a hectare) of the leased area or areas held by the permit holder or permit holders concerned.

(5) The Minister is required to keep a separate account in respect of cash deposited under this clause and to invest the cash:

(a) in accordance with Division 2 of Part 2 of the Trustee Act 1925 as if the cash were trust funds, or

(b) on deposit with the Treasurer.

(6) The Minister may:

(a) reduce the amount otherwise payable by a class A permit holder of a class 1 lease under an arrangement referred to in subclause (1) (a) or (b), or

(c) exempt a class A permit holder of a class 1 lease from the operation of subclause (1),

if the Minister considers that the reduction or exemption is just and reasonable, given the type of aquaculture to which the permit and lease relate and the manner in which the aquaculture is to be undertaken.

(7) The Minister may revoke a grant of a reduction or exemption if the Minister is satisfied that the reduction or exemption is no longer warranted.

(8) The Minister may grant, or revoke a grant of, a reduction or exemption:

(a) in a particular case, by instrument in writing served on the permit holder, or

(b) in a particular class of case, by notice published in the Gazette.

(9) The grant, or revocation of a grant, of a reduction or exemption takes effect on and from the date specified in the instrument or notice, as the case may be.