E&OE

23 April 2008

Media conference – 18^th Australia-PNG Ministerial Forum, Madang

PNG Foreign Minister Sam Abal: Ladies and Gentlemen, members of the press, thank you for your attendance today. I’m very happy to inform the public that our eighteenth Ministerial Forum between Australia and PNG has been very successful in terms of, firstly the important attendance of representation on the Australian side. Very important, powerful Ministers from Australia and the delegation that have come to participate at this Forum in Madang.

I want to thank my colleague, Foreign Minister for Australia Stephen Smith, and also all the Ministers, for coming to Madang. It’s a very important meeting for us, and after two or three years of the meeting being deferred we have come together to meet again. I want to thank the Ministers on the Papua New Guinea side for being present here today, and answering the challenge by the important delegation from Australia.

We have completed our deliberations today in terms of altogether about 14 agenda items, one or two which we will complete at the end of this press conference, but I am glad to say that we have achieved much progress on all the issues that we have discussed, and I will speak on one or two of them, and allow my colleague to speak on others.

But generally my personal impression of the PNG side, the PNG Government, is that our meeting, the first time back together after three years has been very successful. And I think the new incoming Government, as already prefaced by the visit of the Honourable Prime Minister Rudd into PNG, and then the various contacts between ourselves at various levels has set the pace for a successful outcome for this meeting which underlines the fact that between PNG and Australia, our relationship goes deeper than any short breaks, or any differences in opinion between our two countries.

As democratic countries, these things will happen, but we understand that. But I’m very happy to continue back on the relationship. The rebirth that the Prime Ministers talked about has just begun and I’m happy to have co chaired this one today, to welcome into place the new chapter that the Prime Ministers talked about, and I thank the Australian side and look forward to Mr Smith making a few comments.

I will do so briefly but, on one or two of the issues that I would like to mention specifically in terms of what we used to call ECP, what was named as ECP. I’m glad to report that we will no longer continue under the so called ECP. The Ministers have agreed to give a new image to this relationship.

We understand and we agree with each other that it is a new partnership of cooperation, mutual respect and mutual responsibility. The Australian assistance since independence has been big, and we welcome and we thank the Australian delegation and the Australian people for ongoing support, never failing in that, always giving us the assistance every year.

But also under that we welcome the committing of the assistance under the former ECP Treaty, which now the Ministers have agreed to coin as the Strongim Gavman Project, which means assistance to Government, helping government run and do what it is supposed to do, so I think it is a project that is welcome by us. We no longer talk about issues of immunity and all that because what the relationship will be is one of mentorship, Australians standing alongside Papua New Guineans, helping them to achieve the programs that they will pursue in the various sectors. I’m glad with that, what we have done, and the Ministers of Papua New Guinea are happy with how we went on that. Here I might allow my colleague to speak, I don’t want to speak too much, it’s a partnership arrangement. You might elaborate on the issue of the Kokoda trail, so thank you

Australian Foreign Minister Stephen Smith: Well thanks very much Sam. Firstly can I thank you and your Ministers for the very warm welcome and the hospitality we’ve received since yesterday afternoon. We’ve been very pleased to come back for the first Ministerial Forum since the end of 2005, and I think that the success of our Forum today, which follows on the success of our Prime Ministers visit to PNG recently, just shows that the Australia-PNG relationship is well and truly back on track.

We think frankly it is a breath of fresh air. It’s been a very successful and productive meeting today. Firstly we had a very good conversation about the Australian Prime Minister’s proposal for Pacific Partnerships for Development, and Mr Abal and I have signed an agreement that we will pursue negotiations between Australia and Papua New Guinea with a view to getting some Heads of Agreement for a Pacific Partnership between Australia and PNG in time for the Pacific Islands Forum Leaders Meeting in Niue in August.

The conversation we had about Pacific Partnerships was also in the context of the Government’s long term development strategy, the 2010-2030 development strategy, and it’s quite clear that these two things have a lot of consistency, a lot of convergence, and can run parallel one with the other. And as Mr Abal said, also in the development assistance context, we had a very good conversation about the old ECP program which has been up for review.

It’s a mentoring program, its building capacity in Government administration, building capacity in governance matters, and we were very pleased to adopt the new title, Strongim Gavman, which says it all. So it was a very good conversation about development assistance.

Secondly we had a very good conversation about climate change. Both nations committed to working very hard both in our region and internationally to bring about the abatement of dangerous climate change. And my colleague Penny Wong is able to announce a $3 million program to assist Papua New Guinea in its reforestation and climate change areas, and she will provide further detail on that.

Very importantly as you have just seen a moment ago the signing of a joint understanding between Australia and PNG on the Kokoda track – this is a very important issue to both Australia and PNG. The fact that at the end of this week some of my colleagues and I will attend the Dawn Service at Bomana War Cemetery reflects the longstanding iconic value of the Kokoda Track to Australia. But it also has very significant environmental, heritage, economic and social importance to PNG, particularly to the local landowners. It’s a very good joint understanding, I will ask subsequently Mr Garrett and Mr Allan to provide you full details.

You’ve also seen the signing of some Memorandum of Understandings so far as police and justice administration is concerned and also the Memorandum of Understanding so far as the Tsunami Early Warning System is concerned.

An item of interest to PNG, labour mobility or seasonal workers – we’ve had a good conversation about that and I’ve made it clear to PNG and to Mr Abal and his colleagues that the Government is currently considering the NZ pilot program. We have asked the PNG Government to put a formal paper or submission to us on labour mobility or seasonal labour arrangements, again in time for us to consider the possible announcement at the Pacific Island Leaders Forum in Niue in August.

It’s been a good day’s work and we’re very pleased that the relationship is back on track. It is a very productive partnership and that’s the way we see it. Australia wants to be a respected partner, a respected neighbor in our region in this area and we think the best way of doing that is working cooperatively, in partnership with important neighbours and important regional partners like PNG.

It has been a very good day.

We’re happy to answer your questions but Mr Garrett and Mr Allan are also available along with Minister Wong on climate change and also some of the other relevant PNG ministers.

We’re now in your hands.

Abal: Thank you. I would also like to mention the PNG side. They are a powerful bunch of ministers. One of the major issues that Stephen referred to is the one on development cooperation and how we see future development and putting the position, our perspective for future development and our Minister for National Planning did present today.

What he terms as the long term development strategy, apart from our medium term development strategy he foresees that we will have four of these medium term development strategies which brings us from 2010 to 2030. If the media want to ask more questions on that I would ask the Minister for Planning to be available as well as the ministers who have also signed the agreements – tourism, environment and other ministers that you want to ask for questions of.

I’m glad to say that this is the framework under which the government will pursue its own framework for development, similarly as well I am glad that the Minister presented this today to the Australian side for them to see. It will also be presented to other donors and financing under that framework and budgetary things for our country. This is a long term approach more than a medium term approach. But I will let the Minister elaborate on that if you have further questions.

But generally we are happy with the progress so far. In terms of PNG’s interests in relation to labour mobility the Australian Government will consider the proposal we will put through. We are looking forward to affirmative action. We don’t want to pre-empt what comes of that. It will be something that is important to PNG, so we will submit a proposal to Australia and it will be in your hands.

Question: What does a mentoring role mean? Is it Australia sending some more advisors into key government developments and how many and when are we looking at them?

Smith: It’s effectively an extension of the ECP program. It doesn’t deal with police matters, where we have seen difficulties in the past. The program is what’s known as a twinning program where we will see Australian officials working side by side with PNG officials imparting expertise, mentoring, bringing out the capacity of officials in the end, to do the work by themselves, for themselves.

We think it’s a very good program, it’s formally reviewed and I think that it’s very well worth pursuing. It is in the nature of capacity building or skill raising and the twinning or the mentoring - working side by side is a very effective way of imparting that expertise.

Question: In terms of the Pacific worker’s scheme – you’re saying that falls in PNG’s court in terms of giving you an outline of what they expect.

Smith: We came to office saying that we would carefully examine the NZ pilot program and we are aiming and want to make a decision on the general issue in time for the Leader’s Forum meeting in Niue in August. It was raised at today’s forum and has been raised by Mr Abal with me in bilaterals in the past, I just took the opportunity of formally saying ‘if you want to put a formal proposition to us with details about how you would see a scheme unfolding or developing then please do so’. Because Mr Abal made the point that the NZ scheme is geographically about countries to the South. As we’re a bit further to the North, there’ll be different parameters or different issues that need to be addressed – and it will certainly help us if we get a formal detailed proposition for the PNG Government.

I think the Treasurer told me that I’d get the submission by about 8 o’clock on ANZAC Day morning at the High Commission’s gun-barrel breakfast, I think they’re ready to slip it in.

Australian Minister for Environment, Heritage and the Arts Peter Garrett: Thanks very much Minister Smith. Today we have reached an historic agreement between Australia and Papua New Guinea, on the future of the Kokoda Track. I think it’s fair to say that the bonds forged in war-time between Australia and Papua New Guinea on the Kokoda Track, that this Agreement today strengthens those bonds.

And I very much welcome the spirit of cooperation and partnership that the Papua New Guinea Government has brought to this engagement. And I’m very pleased, along with Minister Allan, that we can announce this joint understanding with you today. It is the case that the Kokoda Track is an emblem of the relationship between out two countries, and by reaching agreement it ensures that the Track’s integrity is preserved, whilst at the same time enabling communities along the track to pursue good livelihood means that our cooperation at this meeting has reached a new level.

Additionally, the track passes through some important country for the people of Papua New Guinea, the Owen Stanley Ranges – an area of high bio-diversity, and areas along the Track clearly have critical importance in relation to the prospects of being water-catchment for the city of Port Moresby. We want to provide the opportunity for communities on the track and for Papua New Guinea to recognize the great cultural significance of the Track, not only for the people of Papua New Guinea, but also for Australia, and I know that visitation to the Kokoda Track has increased by some 70 or 80 people, up to some nearly 5 thousand in the space of about half-a dozen years.

Clearly the potential for tourism on the Track is immense. Critically, we do want to identify the possibilities of world heritage-listing by Papua New Guinea of the Kokoda Track, and as well, provide additional assistance in enabling the revenues that are gained from the trekking activities in the Track to find their way to the communities who are most in need. I want you to know that we are ready, willing and able, to get stuck into fulfilling this joint understanding – the blood and sweat and tears of Australian soldiers, the blood, sweat and tears of Papua New Guinea communities – bonds that were forged in war time on the Track are bonds that we want to continue in peace-time.

That’s why I think today’s agreement is an important and significant one. It’s genuinely historic and I know for all of my Ministerial colleagues it’s been a great privilege for us to sit here, Prime Minister, with you and your colleagues and reach this understanding. I might invite Minister Allan to make additional remarks.

PNG Minister for Environment and Conservation Benny Allan: Thank you Minister Garrett. I’m glad to say on the position of the Papua New Guinea Government, we had set up a task-force to talk with the counterpart in Australia, to look at what kind of long term and short term assistance can be given to our mine-owners. As you all know, there was a mining activity that was about to take off in the Kokoda area, and our Government through the taskforce talked to the landowners and convinced them, convinced the landowners to see Australia and Papua New Guinea’s interests before their own.

So I stand here and I say the land owners have made a very difficult decision – to forego mining activity in the area. I am pleased to say our discussions this afternoon has been very fruitful, has been very good, by hearing the Australian Government telling us what sort of short-term and long-term activities that they would assist us towards the landowners, and I would like to say thank you. The discussion that we had this afternoon has been very fruitful and the partnership that we have signed has brought the discussion together, and that meant that what we discussed meant business and we’re serious. I would like to conclude again by saying that because of the landowners who have made the hard decision, I would answer for both the Papua New Guinea and Australian Governments, to follow-through their words today by putting into action what they have said they would do for the people of Kokoda. Thank you.

Smith: Ok, everyone happy ?

Question: Minister Allen, have you spoken to the land owners at all before today’s meeting. Obviously you must have discussed what you have put on the table for the land owners, they’re after compensation. Are they happy with what you are going to deliver here, have you spoken to them?

Allan: Our task force has been talking to them and that process is still an ongoing process and we will be talking to them after this forum.

Question: So you can confirm for Australian audiences that no mine will affect the Kokoda Track.

Allan: That is for the PNG Government to decide. At this point in time the Government has decided not to give an exploration license to the mining company who wants to do mining out there. The Government has made a decision on it. So what the landowners get, what are the two Governments offering the landowners: roads, schools. Both Governments agreed to look at long-term benefits for the people. That includes schools, clinics, infrastructure, the basic services that our people want. Both our countries have agreed to do that.

Question: Would the landowners [indistinct]

Allan: It’s done through a consultative process. We are consulting and meeting with and talking to the landowners as we make decisions. So it’s not one side [indistinct].

Question: A quick question for Mr Abal. You mentioned this morning that you wanted to put the Minister’s thoughts forward about possibly redirecting some of AusAID’s funding towards what you call impact projects. I guess that means construction and infrastructure. Do you feel that the Minster’s thoughts were heard by your Australian counterparts?

Abal: I think so. In terms of our own pushes I mentioned earlier the example presented by the Minister for Planning. I might get him to come and explain this. But these part of the packets of the long term development strategy, following to a framework that is both governments long-term planning and ability to commit funds according to a set program. But I might ask the Minister for Planning to come and explain.

PNG Minister for National Planning and District Development Paul Tiensten: I made a presentation on behalf of the Government to our counterparts from Australia on the long-term development strategy for PNG which commences on 2010. In 2010, after the medium term development strategy expires, it then takes us twenty years into the future, looking at 2030. The broad parameters in the strategy is based on, first economic independence. The second is on growing the economy by ten percent and third one is the high quality of education which we believe should be compatible to standards in Australia.

Taking those three broad parameters we will then work that through with [indistinct]. But the framework was discussed this morning and my feeling was that it was accepted by the Australian Government but there is a lot of work to do after this Forum.

Let me just say, that this is the first time the Government is serious about looking at long-term development, long-range plans for PNG. In 2002 when our Government came in under the leadership of Sir Michael, we developed a medium-term strategy but we did not go further by going long term. So within the long-term period you will have four medium term development strategies that will roll over by 2030 and we should attain some economic independence and economic self-sufficiency. But it is important that we as the Government have a plan where we will then redirect Australian aid and then we will redirect World Bank, European Union, and all the other donors who help us to develop infrastructure. But let me also say that there are some issues with the PNG Government where Australian aid was spread too much then there is very little impact [indistinct]. I forgot to use the term, spreading the butter too thinly.

So we think that there is agreement on our side, some conversions. I am happy to say today that between myself and the Government. We will work with ourselves to come up with something that is concrete that I think will take us further but I think we have to look at this framework as the entry point for all the donors and others who will come to help us achieve economic independence. But we will concentrate on infrastructure, health, education and also some of the areas currently talked about with ECP. This is only a framework still, it’s not concrete, there will be a lot of work to be done on it. Infrastructure is very important for us to provide access to link the country, open up this country so that there is help in terms of trade and things like that – solving some of the constraints that we experience as a country.

Thank you.

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