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The Indigenous Land Corporation (ILC) is making sweeping changes after writing off more than $62 million from the value of its flagship tourism property, the Ayers Rock Resort at Uluru.

The Federally-funded corporation paid $317 million for the Ayers Rock Resort in 2010 but its value has now been written down to about $250 million.

The ILC has made sweeping changes to the board of Voyages Indigenous Tourism Australia, which manages the operation of the resort, with Investec Bank Chairman Richard Longes, Peter Barge, former Qantas Chief Executive Geoff Dixon, Ronald Morony and former Chairman David Baffsky all exiting.

The changes have also seen the resignation of Voyages Managing Director Koos Klein.

ILC Chairwoman Dawn Casey says the ILC bought the resort despite warnings from then Federal Finance Minister Penny Wong and Indigenous Affairs Minister Jenny Macklin that they were paying too much.

She says the resort, about 450 kilometres south-west of Alice Springs, was acquired to provide a commercial base for the running of an Indigenous tourism job training centre at Yulara.

In 2010, it was projected that 200 Indigenous employees would be working at the resort by 2015, and by 2018 that number should increase to about 50 per cent of the workforce of more than 600 staff.

The resort currently employs 150 Indigenous workers, and 60 more Indigenous people are in training.

Casey told the ABC that she now questions the strategy because of skyrocketing costs, stating "is that the most cost-effective way to introduce training for Indigenous people around the country?

"From the new board's perspective it would seem to have been a large amount of money to pay to develop an Indigenous training centre because of the conditions at Ayers Rock at the time of the acquisition."

She says the resort's profits are not meeting interest repayments, let alone paying down the principal.

Casey added "it is in the order of some $10 million annually ... the writedown comes as a pretty significant issue for the new ILC board."

Outgoing Voyages Chairman Baffsky has called for Federal Government action on the Resort saying that it is perplexing that the experience of the sacked board members has been wasted while highlighting the importance of preserving the resort's Indigenous training program.

Baffsky told News Ltd "I think the Government has to take some decisive action because they are putting at risk probably the most successful indigenous employment and training program in tourism that has ever been created in Australia."

15th October 2010 - INDIGENOUS LAND CORPORATION BUYS AYERS ROCK RESORT

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