The Short Title of this Act is “The Timber and Flax Royalties Act, 1905.”

From and after the passing of this Act one-half of the revenue received by the Receiver of Land Revenue in respect of royalty under any license for cutting timber or flax, and payable into the Consolidated Fund, shall be payable to the local authority within whose district the timber or flax is obtained and the revenue was derived, and shall be applied by such local authority exclusively in constructing, repairing, and maintaining roads:

Provided that any revenue received under the provisions of this Act from any district where no local authority exists shall be placed in a separate account, and shall be applied for the purposes aforesaid under the direction of the Minister or of such person as he may appoint.

Every Receiver of Land Revenue shall from time to time, as he receives the same, pay into a deposit account the proportionate part of all royalties payable under this Act to any local authority; and on the first day of the months of February, May, August, and November in each year shall, on the certificate of the Land Board that it has approved the works whereon such money is intended to be expended, pay the money accrued from the said deposit account to the local authority entitled thereto, by cheque, to be signed by himself and countersigned by the Commissioner, and not otherwise.

Whenever it appears that any moneys paid to any local authority under this Act have not been properly applied to the objects for which they were so paid, the Colonial Treasurer may proceed for the recovery of such moneys as a debt due to His Majesty by the said local authority, or in his discretion may deduct the amount of such moneys from any subsidy or other moneys payable at any time to the said local authority under any Act.