Page 2766 - Week 09 - Tuesday, 16 August 2005

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arrangements with the need to maintain a merit-based executive service with a consistent service-wide pay framework. These changes apply to all existing chief executives and executives. They will flow through to these contracts, as they are all specifically subject to the act, which includes amendments to the act. However, given the nature of the changes, there is no prejudicial impact on entitlements.

A number of other technical changes are made. For example, references to Calvary Hospital are updated. There are also a series of technical consequential amendments to other acts set out in the schedule to the bill. The Public Sector Management Act is due for an overhaul. That is recognised by the commissioner’s review of the act. This bill makes intermediate changes to address some poor issues. It is recognised that they are a first step to wider changes. I commend the bill to the Assembly.

Debate (on motion by Mr Smyth) adjourned to the next sitting.

Hotel School (Repeal) Bill 2005

Mr Quinlan, by leave, presented the bill, its explanatory statement and a Human Rights Act compatibility statement.

Title read by Clerk.

MR QUINLAN (Molonglo—Treasurer, Minister for Economic Development and Business, Minister for Tourism, Minister for Sport and Recreation, and Minister for Racing and Gaming) (5.17): I move:

That this bill be agreed to in principle.

This bill will enable the sale of the business activities and undertakings of the Australian International Hotel School. The Australian International Hotel School has relied on budget funding since it was established in 1994. The continued operation of the school in its current form would, in all likelihood, require further budget funding to be provided. The government decided in May 2003 to test the market for proposals whereby the management of all aspects of the Australian International Hotel School and the Hotel Kurrajong would be sold or transferred to an alternative party or parties.

It was further proposed that if no viable proposals were received during the market testing process, the Australian International Hotel School would be wound down by December 2006. Costs would be incurred in winding up the operations of the school and the potential proceeds that could be gained by leasing out the Hotel Kurrajong site would be constrained by its heritage status. I think members are aware that we purchased the Hotel Kurrajong from the commonwealth at a pretty good price. The government’s preferred course of action has always been to sell the school to another educational institution, which would continue to operate at the Hotel Kurrajong through a sublease from the territory.

After a robust due diligence process and detailed negotiations, agreement has been reached for the Blue Mountains International Hotel Management School Pty Ltd to take over the activities of the Australian International Hotel School. This proposal will strengthen the position of the AIHS both financially and academically. Most importantly,

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