Australian Commonwealth Coat of Arms

Visit to Papua New Guinea

Joint media release: Minister for Foreign Affairs and Trade, Stephen Smith, and Assistant Treasurer, Nick Sherry

8 July 2010

In Alotau, Papua New Guinea, on Wednesday 7 and Thursday 8 July we had positive and productive discussions with Papua New Guinea Minister for Foreign Affairs, Trade and Immigration Samuel Abal and other PNG Ministers.

We were accompanied by Bob McMullan, Parliamentary Secretary for International Development Assistance.

Australia and PNG Ministers agreed that Australia-PNG relationship was now at a turning point.

This was the case largely as the result of the PNG-LNG project, which holds great prospects for PNG's economic and social development.

We agreed to work together towards an umbrella economic cooperation agreement encompassing trade and economic development and development assistance.

We agreed to chart new directions for our development assistance cooperation. We formally received the independent review of the Development Cooperation Treaty and agreed to jointly address the review's recommendations.

We accepted the Review's analysis that we should focus on a smaller range of development assistance areas.

We agreed to complete a review of advisers to ensure their use is effective and represent value for money.

We had informative discussions on the PNG LNG project following on from our Ministerial meeting in Melbourne last week.

Australia remains committed to helping PNG achieve its objectives for the project, including by supporting the establishment of sovereign wealth funds to manage LNG revenues effectively and transparently.

Australia will respond quickly to the PNG request to assist with the legislation and governance arrangements in support of the Sovereign Wealth Funds that PNG will establish to manage LNG revenue flows.

Mr Smith co-signed with Foreign Minister Abal the Second Joint Understanding (2010-15) between Papua New Guinea and Australia on the Owen Stanley Ranges, Brown River Catchment and Kokoda Track region. This framework will ensure that the Kokoda Track area retains its special qualities.

For Australians, the Kokoda Track symbolizes the lasting bond of friendship and mutual understanding between our two countries.

Mr Smith announced Australia would provide $50 million to churches in PNG to deliver crucial health and education services to the poorest and most disadvantaged people in remote areas.

Mr Abal and Mr Smith signed a Memorandum of Understanding on the Pacific Seasonal Worker Pilot Scheme. This will enable PNG to join the Pilot Scheme, which permits seasonal workers to work in the Australian horticultural industry.

Ministers also exchanged letters confirming arrangements to facilitate the cross border movement of officials and health professionals in the important shared border region of the Torres Strait.

We also met with PNG and Australian business and industry representatives and had valuable discussions about bilateral trade and investment.

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