The Hon. Stephen Smith MP, Australian Minister for Foreign Affairs
Australian Commonwealth Coat of Arms

Transcript E&OE

10 June 2009

Joint Press Conference, Stephen Smith, Minister for Foreign Affairs (Australia) and Mr Sam Abal, Minister for Foreign Affairs, Trade and Immigration (Papua New Guinea)

Subjects: A summary of issues discussed at the 19th Australia-Papua New Guinea Ministerial Forum.

STEPHEN SMITH: Ladies and gentlemen, thank you very much for coming. Foreign Minister Abal and I will report to you on the deliberations on the 19th Australia Papua New Guinea Ministerial Forum. The Communiqué is being settled and that'll become available in the next half hour or so.

But can I firstly say, so far as Australia and Papua New Guinea's bilateral relationship is concerned, that Foreign Minister Abal and I both agree that we don't think the relationship has ever been at a better or a higher level. We have seen very successful visits by both Prime Ministers: Prime Minister Rudd's visit to PNG last year; and Prime Minister Somare's visit to Australia recently.

We've seen two very successful and productive Ministerial Forums, Madang last year and Brisbane this year. And we're countries who are very close neighbours. One a country of over 20 million people, one a country of over 6 million people. And so the economic trade and investment opportunities are high. The people to people contact and exchanges are also high.

Our work together in the region is also very close and very important. We work together in the Pacific Island Forum. Foreign Minister Abal and I have both been members of the Ministerial Committee on RAMSI, our mission in the Solomon Islands. We've both been members of the Ministerial Contact Group on Fiji. And so we've been working very closely together.

Papua New Guinea is also our largest development assistance partner in the Pacific, and our second largest partner overall. And the historical ties, of course, are deeply significant. World War II, the Kokoda Track, the Fuzzy Wuzzy Angels, and our shared experiences during that time have laid the basis for the modern day relationship.

If I can just quickly touch upon the significant decisions of the Forum then ask Foreign Minister Abal to make some remarks, and then we'll happily respond to your questions on the Forum and the bilateral relationship. And I'm also happy to subsequently respond to any domestic questions if Australian journalists have those.

Firstly, on the Pacific partnerships for development, which Australia and Papua New Guinea agreed last year. We have agreed schedules in five important areas; transport infrastructure, basic education, health, public service and statistics. And in those five areas we now have agreed schedules and work programs.

We've also agreed that over the next 12 months in three separate areas; HIV/AIDs, higher education - including technical and vocational education - and law and justice, we will develop similar and comparable work schedules and agreements.

As well, we've agreed to review the University of Papua New Guinea. That review will be conducted jointly by Professor Garnaut and Sir Rabbie Namaliu. We've also agreed to set as a target increasing the number of Papua New Guinea primary school students from 53 per cent of the population to 70 per cent by 2015 as part of our basic education Pacific partnership for development commitments.

We've also agreed to review the Australia Papua New Guinea Development Cooperation Treaty. It is Papua New Guinea's long-term aspiration that Australia's development assistance cease and that is obviously something which Australia supports. That is a long-term aspiration which is very sensible.

It's not going to occur overnight but a review of the current development cooperation treaty will set the scene for that long-term work. As indeed, does our agreement so far as Pacific partnerships, the so-called Strongim Gavman program, and also our shared commitment to capacity building.

Importantly, on the Kokoda track, our colleague Environment Minister Garrett, announced a further million dollars for the Kokoda development program, an additional quarter of a million dollars for improved infrastructure on the track itself improved trekking infrastructure. And also there's an agreement to affect a code of conduct, particularly given in recent times, two very tragic deaths, we want to work up a code of conduct, so far as tourist operators on the track are concerned.

We've agreed to strike a Fuzzy Wuzzy Angel medallion, which will be available for presentation on PNG Remembrance Day on 23 July this year. And, at the conclusion of the press conference, Parliamentary Secretary Kelly and I will present to Foreign Minister Abal, the first images of the Fuzzy Wuzzy Angel medallion.

In the course of the meeting, our Ministers signed two agreements; a forestry Memorandum of Understanding signed between the respective forestry Ministers, and a work plan signed by Climate Change Minister Wong and PNG Environment Minister, which was a work plan agreement on the forest carbon partnership.

Importantly, in the course of the day, we invited the business people of the Australia Papua New Guinea Business Council to join us for lunch to make presentations to us. And of course we have two divisions, or two chapters, of the Australia Papua New Guinea Business Council - the Australian branch and the PNG branch. And we were greeted with presentations from both the Australia side and the PNG side. And this we regard as a very important development.

We also received presentations from Ministers on the adverse implications of the global financial and economic crisis in global downturn for both Australia and Papua New Guinea's economy. In that context, we agreed that we should recommend to our leaders that, at the Pacific Island Forum Leaders' Summit meeting in Cairns in August, that negotiations should start on the PACER Plus agreement.

And I'll conclude my remarks there. We've regarded today's meeting very much as a precursor to the Pacific Island Forum Leaders' Meeting in Cairns in August. We certainly look forward to Mr Abal attending with Prime Minister Somare.

And so, Sam, that's been a lengthy introduction by me but I think I've covered the key decisions that we made in the course of the day and I would invite you to make some opening remarks and then we'll happily respond to your questions. Thanks, Sam.

SAMUEL ABAL: Thank you, Stephen. Thank you also for covering quite comprehensively the discussions between our two countries and 30 or so Ministers between ourselves - Papua New Guinea and Australia. All those issues that the Minister Smith has outlined above I subscribe, together we met and discussed all those issues.

I just wanted to cover one or two things - issues. Firstly regarding the development cooperation, I think, from the PNG side, we will start with concerning the idea for PNG to consider the issue of an exit strategy that which means the government dependence will cease. Particularly we think it's important to realise for any country, I guess, is to realise that it must save itself. It must not get into an aid dependency syndrome where, for the long-term, you become too dependant on aid.

Since independence, this is constant that has been taken up since independence, it's well within our major principles, in the Constitution as well and very much supported and spoken of by our Prime Minister Grand Chief Sir Michael Somare. Within this Government we have said, yes, I think it's about time we think about how to save PNG.

Our plan is to save itself without having so much to depend on aid. And that's not only Australian aid. It's other forms of aid and other aid coming from other countries as well. And here I want to mention clearly to the people of Australia, the Government of Australia, that, yes, indeed the people of PNG, as well as the Government of PNG, is very much grateful of all these so many years since independence, the people of Australia, the governments of Australia, has been able to benevolently give to the people of PNG.

Our policy on the concept of trying to have an exit strategy is not that we're ungrateful. It's just that as a nation, we have to take charge of our destiny. And for that to happen, look, is has to be that companies must have ways of self-sustaining, otherwise we become too dependant on aid and the future does not look bright for us. And, in the world of globalisation and opening up of trade and competitiveness and all this, we need to find our way in the world.

So, as the Minister said, it is not a sudden shutdown of aid. It is the idea, the principle we and our people must realise that we must go into try to sustain our self financially so that we can depend on ourselves, our resources, our capabilities for our future.

So that's the background behind that thinking and I want to stress it's nothing to do with how aid is done between PNG and Australia. It's the fact there is a independent decision of the PNG government to get the whole of [indistinct] say well, we've got to start holding our future and the planning of our country. So that's how this happened.

I want to thank Minister Smith and the other Ministers during this conference, the meeting, the forum. We were able to come together in our position that most of the aid must be given towards infrastructure type of projects. And I think it is important that between Australia and PNG more infrastructure projects come all in the areas of socio-economic developments so that those structures help us. Help us to develop in terms of the millennium development goals of the United Nations and other objectives that we have. I am glad to say that we have discussed it and agreed to that and I am certain that as the development cooperation treaty we will [indistinct]. We have agreed to the terms of the reference for that and we know that as it goes on that also will be taken into account.

Another issue I want to bring up is concerning the trade issue, the negotiations on PACER Plus. PNG's position is that we should move on PACER Plus. It is time for PNG to move on it, and we agree with what Simon Crean has said this morning.

For us in PNG we think that it is good and it's important for us to move to the table, the negotiating table, and only then can we find out what is there for us.

If we do not move into the table we would never know what is there and think hopefully that Australia and PNG - very interested(*) development Pacific Island interest is altogether within this region and I think it is important for us in island countries, including PNG to look at moving towards solid discussions on PACER Plus.

That's PNG's position. So in the coming months and so on we will be a - hopefully talking to other island countries.

But that's one issue I want to highlight today in terms of trade.

Any other issues that you might have questions on?

STEPHEN SMITH: Well thanks very much Sam. We're happy to respond to your questions. Sean?

QUESTION: Sean Dorny from the ABC. Minister Abal, this forest carbon partnership. What does that actually involve? Papua New Guinea and Australia are talking about helping PNG make money out of its forests.

SAMUEL ABAL: Basically, that is what it is and it's what we call during the two Prime Ministers meeting and signing a carbon partnership MOU under which today we have signed the program of activities which will help for PNG in terms of forests PNG in order to try and get them to carbon trade. Australia will help us with trying to get a counting of the carbon resources in PNG to make it possible for us to be able to get into trade of that carbon trading. That's what we signed today. Thank you.

STEPHEN SMITH: We obviously welcome very much that today our respective Ministers have signed a work plan agreement under the carbon partnership, which was agreed between Prime Minister Rudd and Prime Minister Somare last year.

But the policy rationale for the partnership is quite straight forward. Papua New Guinea, of course, has one of the world's great rainforests.

More than two thirds of Papua New Guinea is covered by rainforest and we know scientifically that forest degradation and reforestation has implications for climate change. And one of the things that needs to be done scientifically for a country like Papua New Guinea is to be able to measure what the climate change and carbon implications of forest degradation, reforestation is, and the work plan has been signed up by the ministers today to help progress that.

So we regard that as a significant policy initiative. It is one of the things which reflects the fact that Australia and PNG are working very closely on climate change matters and symbolically, Foreign Minister Abal and I often recount the tale that when Prime Minister Rudd signed up to the Kyoto Protocol on behalf of Australia at the Bali conference. He was sitting on the stage next to Prime Minister Somare for an hour and a half and I think they hatched more than one policy arrangement on the stage on that day.

QUESTION: Minister, it is estimated about 80 per cent of logging in PNG is legal and the Federal Government gave, you gave commitments in the election campaign that you would ban all imports of illegally logged timber into Australia.

Now Greenpeace has today accused you of backing away from that promise. Are you going to ban imports of illegally logged timber from PNG and other countries?

STEPHEN SMITH: Do you want to go first Sam?

SAMUEL ABAL: I think today we had also another signing ceremony. That was something on the - between the Forestry Minister and Minister Wong today.

STEPHEN SMITH: Burke.

SAMUEL ABAL: Sorry?

STEPHEN SMITH: Minister Burke.

SAMUEL ABAL: Minister Burke. Sorry. Within PNG we were also concerned that our exports of some timbers into Australia had been decreasing because of that ban and now that this MOU has been signed, we hope that we can take care of the requirements there to be able to manage some great logs properly so that they can be accepted in the Australian market.

STEPHEN SMITH: The Minister is quite right. What we have signed up today is a Memorandum of Understanding between Australia and Papua New Guinea, signed by our respective agriculture or forest Ministers, to essentially ensure that logs which come to Australia are certified. Certified for quality, but also certified for source.

So we regard that as a substantial achievement and we think that's a very good thing. It will be a very good thing for the logging industry in Papua New Guinea. It's also a very good thing for the quality of Australia's imports.

QUESTION: The Opposition talked about an outright ban though. Is that going to go ahead?

STEPHEN SMITH: Well, we are making progress. We regard the MOU today as being a very important step. It enables the certification of both the legality of the logging of logs which are imported into Australia from Papua New Guinea. But it also certifies as to quality.

So that's, in our view, very good for the imports, which we bring from Papua New Guinea to Australia. But it's also very good for the PNG forestry industry.

SAMUEL ABAL: If I might add there. It looks like what we've - there has been illegal type of logging going on. But I think since this Government came in, we have said no more logging licences to any more loggers for that matter and there was only 10 licences that were there that were granted, and that is normal licences, and after that what we have said is they are not to be processed within PNG.

We cannot break the law of licences that have already been given and so they are existing. But under this program we hope that they can assist the problem.

QUESTION: At the last Forum in Madang you committed to having a package of health measures and border measures brought to this meeting with regard to the Torres Strait.

STEPHEN SMITH: Mmm.

QUESTION: Issues around health services there. Was that discussed?

STEPHEN SMITH: It was discussed and progressed and it'll be part of the communiqué and if you need more detail than is in the communiqué we're happy to provide the relevant portfolio Ministers or Parliamentary Secretaries for the detail.

QUESTION: Can I just an additional question that? At the Madang meeting it was said that the HIC would report comprehensively to this meeting about issues regarding the Torres Strait and the Torres Strait treaty. Did the HIC do that to this meeting?

STEPHEN SMITH: Not in person. But a report was given on the meetings of the HIC, their deliberations. From memory, Parliamentary Secretary Kerr reported on those deliberations and again that'll be part of the communiqué. If you require more information than that which is in the communiqué we are happy to provide it.

QUESTION: Prime Minister Kevin Rudd said back in March last year that because of the movement of our two peoples across the Torres Strait, that Australian and PNG have mutual interest in ensuring that this moves to the top of our bilateral cooperation agenda. Are these issues at the top of your agenda?

STEPHEN SMITH: Yes. Well they've been discussed in Madang and they were discussed again today and both countries know only to well the importance of cooperating on the border.

It's an issue which we apply ourselves assiduously to across the whole range of areas. Health is one issue. People movement is another.

And we received a report from that committee. But the issue, of course, is not one which stops or starts on a particular day. We live closely together, hundreds of islands in the Strait. So these are ongoing issues that we deal with effectively on a day to day basis.

QUESTION: And the health issue has been a big one in the Torres Strait Western Province and your government's committed to addressing that.

I asked [indistinct] recently how much specific Western Province fundings is going into that, and the said, oh just under $2 million and two health workers, or two program workers. Is that a serious commitment to tackling the health issues in that area?

STEPHEN SMITH: Parliamentary Secretary McMullan gave a report on that precise issue today, on the Strait and on the Western Province and made it clear that that was an area where he wanted to ensure we did more and I think that's correct.

QUESTION: If I could ask both of you about issues surrounding the Barrick Goldmine in the Porgera Province. Perhaps first Minister...

STEPHEN SMITH: It's his mine. I'll let Sam go first.

QUESTION: Well, actually - okay, sure. Minister Abal ...

SAMUEL ABAL: What was the question?

QUESTION: Minister Abal, human rights groups and some lobby groups have called on the Papua New Guinean Government to stop or reduce police action in the Porgera Province and they've condemned some of the activities and made accusations about shootings and homes being raised.

How do you respond to that?

SAMUEL ABAL: Thank you for that question. This is an issue concerning one of our largest mines in the country. Those of you who do not know the setting of the mine, it might be difficult for you to understand what has been going on.

So I might, perhaps if I just tell you the background of this mine, for your time. The mine was set up in - it started operations in 1989. And under, what you'd call, a special mining lease that is given to the developer which, at the time was a company from Canada. They took over the ownership of the mine. And usually the SML should be, you know, a clean area where they can go and mine. And the people are supposed to be, you know, out of that SML, because legally it belongs to the mining company, which has been given the licence. But when that signing went on, hamlets of villages were left within the SML area. And that's 20 years ago, from 1989 till now.

And generations of, you know, children have grown up on that mining lease and therefore when you marry in our custom, your families, the extended family comes in to stay. And the population within the SML has increased substantially over time.

It is not so convenient that a large, world-class mining company wants to dig gold out and there's people everywhere. And that is the case that has happened over there. And for them to do that, there have been people who have been willing to risk their lives to try and, you know, hunt for gold within the mining lease as well. And supposedly those people are coming from that crowd of people that's within that SML.

When that happened, the landowners - the actual landowners of the place, together with the administration, the local administration, together with the local MP of that area, requested the national Government to do something about law and order situation. A request was put forward sometime in Parliament as well as letters to the Prime Minister and to Cabinet.

Cabinet decided, after assessing the situation, that because there was some arms built-up around the area, police action had to be taken immediately before anything more dangerous comes out of that. I come from that area so I know the facts of this situation. Because of that arms build-up, the police thought it was important for them to do a police call-out, which the Cabinet did. It is not like a state of emergency. It is only a police call-out where they go - move police troops are on the ground [indistinct].

But I think something like a month of warning was given and police were in the presence within the mine area for about a month or so. And then later on they took action to get rid of the people who were based on police intelligence were involved in activity, you know the gold mine there

QUESTION: Do you accept that...

SAMUEL ABAL: So when that happened the raising of the houses - the houses belonged to - these were not houses, they were temporary sheds being used for the purpose of the mining. And the villagers of the houses, and all those, you know, buildings, for the landowners, have not been touched. It's the police intelligence allowed them to look at, you know, and to target the criminal elements of the mine site.

QUESTION: Can I ask you, then, do you reject the claims of human rights abuses in that area?

SAMUEL ABAL: I think they should visit the Porgera mine for themselves. And the Government is ready to put on an operational commander, who was in charge of the police operation. He will be on stand-by and I have also asked the mine to invite all the ambassadors, including Australia High Commission as well as the US, Canada and others who are there, to come in and see for themselves what has happened.

QUESTION: I'm sorry, I didn't quite catch that. Did you say you do reject the claims of human rights abuses there? Do you reject the allegations or do you accept those?

SAMUEL ABAL: I've not read exactly which allegations you're talking about. But I can't reply to that [indistinct].

QUESTION: Of police - of shootings, either by security guards or police. Are you aware of those allegations?

SAMUEL ABAL: If there are, you know, allegations based on facts, I could see them and deal with them. But otherwise the Government has said that this is something we've done in order to sort a law and order situation out by the request of the local government and the police. And I think the High Commissioners or Ambassadors from other countries including human rights and other people, they can go and see for themselves what has happened. I don't think our Government wants to hide anything. They're trying to solve an old law and order problem, but if other people think there's something wrong they can always come and find out.

QUESTION: Thank you. Mr Smith, sorry, how do you respond to calls by groups including the Mineral Policy Institute and others that the Australian Government take action over those allegations surrounding Porgera?

STEPHEN SMITH: Well these are allegations made in respect of Papua New Guinea. It's a matter for Papua New Guinea, its government and Papua New Guinean authorities. Foreign Minister Abal has just said that if these matters are drawn to his attention, he'll have them investigated, as it should be. So it's a matter of Papua New Guinea.

Foreign Minister Abal has detailed for you the complicated and complex circumstances of the mine over a lengthy period of time. It's quite clear that there have been some law and order and civil disorder issues. As the Foreign Minister himself has said, if people have got allegations or suggestions of abuse to make, they'll be investigated by the relevant PNG authorities.

QUESTION: So, will you send the Australian ambassador in, according to Mr Abal's invitation?

STEPHEN SMITH: Mr Abal has invited the Australian High Commissioner to go to the area if he wants to together with other members of the diplomatic corps. I'm happy to leave that to the discretion of my High Commissioner who's a very good High Commissioner.

Mr Abal has issued the invitation. It wouldn't surprise me if it was taken up and if it was taken up by our high commissioner that's a good thing too.

QUESTION: Mr Abal, at the last forum in Madang you raised the prospect of more villages in western province joining the treaty zone, allowing them access to free movement across the Torres Strait. Has there been any progress on that issue?

SAMUEL ABAL: I don't think so, but I think that's part of the joint advisory committee meeting. I don't think that has been addressed yet. That becomes a complicated thing as far as I know of what has been advised to me, in order to get the non-treaty villages to be a part of the treaty. So I haven't gotten any advice further on that part of the treaty.

QUESTION: Minister, what's Australia's position on more treaties joining - more villages joining the Torres Strait treaty?

STEPHEN SMITH: Well, as Foreign Minister Abal has said, it's an issue that was raised at Madang. It's still on the books for consideration and we're happy to jointly consider it with Papua New Guinea.

All right, everyone, just before we move to the presentation of the medallions, earlier today I spoke about the terrorist attack in Peshawar and I made the point that whilst foreigners were involved, we weren't able to confirm whether Australians were involved and I indicated it was most unlikely.

Can I say that we're still not in a position to confirm that Australians are not involved. We regard it as most unlikely. There are up to three Australians who are registered in the area who we have not yet been able to account for. We expect that they are just in the normal course of events out of the area but as soon as I can confirm through our commission in Pakistan that no Australians are involved, which we are endeavouring to do with the local authorities as well. I'll let that be known.

Can I also make the point that this morning I condemned absolutely the actions concerned. Can I also make the point that now it is clear that one of the people who have been killed is a United Nations officer. Can I again absolutely condemn the attack upon the United Nations official.

We send out sympathy to United Nations Secretary General Ban and his workmates and colleagues and to the family of the victim. The United Nations of course is the premier international institution and whenever its institutions or its personnel are attacked, it is a sad and bad day for the international community.

QUESTION: Palau's reportedly accepted the Uighurs from Guantanamo Bay, was Australia influential in that, so they don't come here?

STEPHEN SMITH: Well I'm not aware of that decision but whatever decision Palau has made is a matter for Palau. We are not yet in a position to make decisions on the up to 10 Uighurs who we have been requested by the Obama Administration to consider for settlement in Australia.

We'll consider that in accordance with our domestic and international immigration and national security obligations. When we've made decisions about those matters, we'll let you know.

QUESTION: Any financial incentives being offered to any other country to take these 10 people from Guantanamo Bay?

STEPHEN SMITH: Well, not by Australia. Certainly not by Australia.

QUESTION: One more quick question. Have you had any representations from the Indian government officially about violence against Indian students.

STEPHEN SMITH: I spoke to my counterpart, External Affairs Minister Krishna a week or so ago, maybe 10 days ago. I made the point to him, as Prime Minister Rudd made to Prime Minister Singh, that we're taking this matter very seriously. We condemn it absolutely. We are working closely with the Indian government both in India through our High Commissioner but also in Australia through the Indian High Commission itself.

We're working very closely with the States, particularly the Victorian and New South Wales Governments and I welcome very much the additional measures announced by the Victorian Government today about law and order and safety and security on their railway system.

The high level task force which we established, chaired by the National Security Adviser, had its third meeting today. And as I have earlier in the day, again reinforce support and underline the comments made by Prime Minister Singh and External Affairs Minister Krishna that the time has now come for calm and restraint. People should simply let the authorities, in particular the Victorian police and the New South Wales police, get on with their job.

We condemn absolutely and we hope that the culprits are brought to justice as soon as possible and together with the educational institutions and the educational authorities in individual universities we continue to do everything we can to ensure the safety and security of all students from overseas in Australia.

Thank you.

[Ends]

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