Bougainville

Australia will provide $100 million over five years for a reconstruction and rehabilitation program on Bougainville. This will support the PNG Government's efforts to achieve a peaceful settlement on the island.

I have been greatly encouraged in my discussions in Port Moresby by the PNG Government's strong and genuine determination to bring an end at long last to this tragic conflict, including through further talks amongst all the parties, as shown by Prime Minister Skate's comments on Bougainville at the weekend.

I made it clear to Prime Minister Skate that Australia stood ready to support such a peace process in any way.

As I said following my talks in New Zealand last week, an essential element of a settlement will be the restoration of basic services to ordinary Bougainvilleans. The assistance I am announcing will help in reopening schools and hospitals and repairing basic infrastructure, such as roads.

This assistance will come under Australia's normal aid treaty arrangements with PNG. It will build on the $32.4 million in current and proposed aid that Australia is already providing to Bougainville.

Australia has also agreed to a request from the PNG Government to facilitate further talks in the Bougainville peace process by assisting with the transportation of participants to the next round of meetings, which I hope will be held in New Zealand.

It is vital to maintain the momentum gained by the evident priority the new PNG Government attaches to achieving peace and as a result of talks amongst Bougainvilleans in Burnham.

The next step is for the PNG Government itself to become directly engaged in these talks. On the basis of very positive and constructive discussions with Prime Minister Skate, Foreign Minister Genia and other senior Ministers in Port Moresby today, I expect the PNG Government to make a more detailed statement on these issues in the near future.

AID TO BOUGAINVILLE - CURRENT AND PROPOSED ACTIVITIES

ACTIVITY	COST ESTIMATE

Buka Hospital (construction of 84-bed hospital)	$6,700,000
Tarlena Specialised Training Centre (Rehabilitation of trade school)	$3,500,000
Bishop Wade High School (Rehabilitation and upgrading of high school)	$9,700,000
College of Distance Education (Rehabilitation and decentralising of CODE)	$3,700,000
Buka Airport (upgrading of runway)	$1,300,000
International Federation of Red Cross and Red Crescent Societies (rehabilitation kits for displaced families)	$4,000,000
Emergency Humanitarian Activities	$1,000,000
Bougainville Transitional Government Support (small scale reconstruction, training and support)	$1,500,000
TOTAL	$32,400,000