By Adam Gartrell
AAP Diplomatic Correspondent
Papua New Guinea's leader wants Australia to rethink its aid
spending in his impoverished nation, calling for a greater focus on big-ticket
infrastructure projects like roads and ports.
PNG Prime Minister Peter O'Neill has also called for a
shake-up in trade and investment links between the two nations.
Mr O'Neill says the PNG-Australia relationship is currently
in "good shape" but has warned against complacency.
He said while he welcomed Australia's generous development
assistance to PNG - totalling close to $500 million in 2012/12 - he wants to
see it more closely aligned with his government's priorities.
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The country is in "dire need" of better economic
infrastructure like roads, ports and airports, he said.
"To effectively deliver on these priorities would
require a total realignment of the aid program, from small projects in diverse
range of areas to major infrastructure projects," he told the National
Press Club in Canberra ysterday.
"I know there will be some in the aid program who will
be horrified by this suggestion.
"But if we are going to make sure your aid genuinely
supports our economic and social development and helps us guarantee our
security and stability we simply must make sure it is more targeted to align
with our priorities."
Australia's aid program in PNG currently focuses more on
needs like health, education and governance.
China had made great inroads into the South Pacific region
by funding infrastructure projects but Mr O'Neill insisted the Chinese aid
footprint in his nation was very small - although he would welcome more.
Mr O'Neill said he did not want to suggest AusAID's current
programs were not working, simply that they were spread too thin.
The prime minister said there was also need for a "new
focus" on trade and investment. There is currently significant Australian
investment in resources projects but Mr O'Neill wants more diversity.
"I would like to see a greater focus on two or three
areas in our economy where there is a lack of competition and where we want to
see strong investment in the near future," he said, nominating
construction and agriculture.
Mr O'Neill also criticised Australian media coverage of PNG,
particularly claims that his country is a failed or failing state.
"This is just simply wrong," he said, describing
the claims as "harmful" and "hurtful".

