Kate tells Paul that she’s moving into Number 26 causing more tension between them. Lucy tells Paul that they have to make finding a replacement hotel manager a priority and that she has a candidate in mind. When Paul learns that it is Terese, he wonders if it won’t open a few old emotional wounds for Lauren, but Lucy assures him she” sussed Lauren out and is confident there won’t be any problems.

When Lucy’s called away suddenly on business, she suggests Paul might let Lauren know who they have in mind. Given the opportunity, Paul decides not to do so and makes a phone call offering a job interview to Lucy’s preferred candidate – Terese Willis.

Matt and Bailey both have to front police Superintendent Duncan Hayes to decide their future. After a tense hearing, Matt is demoted but keeps his job. They fear Bailey won’t be so lucky, but when he gets off with a warning the family couldn’t be happier. Ajay is worried that Mason is in for a much tougher result. Toadie, remembering how his failure shattered Steph’s life, understands the pressure that Ajay is facing.

Georgia is proceeding with her nursing course application without telling Kyle. She is under the belief that he is bound to drop her one day soon and their relationship is doomed.