Papua New Guinea sides with China on Hong Kong

We must also encourage PNG to address investment policy issues that are impeding the development of major resource projects, especially those in which there is Australian equity, such as the Wafi-Golpu mine project and the Papua LNG project.

As I have written before, Australia must urgently and comprehensively review its generous aid program so that it reduces waste and bureaucracy and focuses on the real needs of the people of PNG.

Hundreds of programs that are poorly implemented and managed undermine our credibility in our closest neighbour. They must be urgently refocused on helping PNG reverse the real decline in the basic living standards of its people - people who value the friendship with Australia and are rightly suspicious of the growing lock China has on key areas, now clearly including foreign policy.

The Australian government's 'Pacific step-up' program alone cannot do that if it means continuing the same aid programs and simply adding more dollars to them. Our relationship with our closest neighbour is vital for our national security and the stability of our region.

It needs urgent and robust repairing and refocusing.