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Legislative Assembly for the ACT: 1996 Week 12 Hansard (21 November) . . Page.. 4271 ..

Mr Speaker, this Bill is the first legislative step in the Government's strategy to resolve the problems created by the previous Government's disastrous financial and management decisions with respect to the Australian International Hotel School (AIHS). The AIHS is, currently, a legal entity established under the Canberra Institute of Technology Act 1987 (Section 6).

The legislation I am presenting today creates the AIHS as a statutory corporation, separate from the Canberra Institute of Technology (CIT).

Mr Speaker, under this legislation, the Hotel School will be subject to greatly enhanced financial, accountability and reporting arrangements to those currently in place. It is imperative, Mr Speaker, if the mistakes of the former Government, made in respect of the school, are to be corrected, that the Hotel School's operating arrangements be restructured.

This Bill starts that process, and it is a decisive response to the Auditor General's Report, which was ordered earlier this year, by this Government.

Under this legislation, the Hotel School will be subject to the Financial Management Act 1996. The Hotel School will not be able to enter into contracts over $50,000 without the approval of the Minister.

Neither will the School be able to enter into any partnerships, or participate in a joint venture without Ministerial approval.

As well Mr Speaker, I have already established an interim Management Advisory Board. Under this Bill, that interim Board, with the same number of members, becomes the

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