Providing real leadership in the fight against PRC coercion

Given that ninety per cent of school students in PNG belong to a Christian family increasing direct funding for church schools and other education centres is an immediate and effective way to help restore a dangerously run down system which will have long term social and economic consequences if not addressed now.

4. Force the ADB to award infrastructure tenders via a fair and transparent process

The Australian and Papua New Guinea construction sectors have been effectively sidelined in the awarding of lucrative infrastructure tenders by an indefensible Australian Development Bank tendering process. I have written extensively about this recently. None of the claims I have made have been effectively disputed.

Australia needs to work with other ABD Members, such as Japan and New Zealand, to put an end to an ADB process that awards just about all ADB funded infrastructure projects in PNG to Chinese contractors. China's contribution to the ADB is about the same size as Australia's. Yet it receives over 90 per cent of ADB funded infrastructure and other contracts in PNG.

Australia must use its standing with the ADB to out an end to this practice, while at the same time ensuring all tenders, including those funded by the ADB but awarded by the PNG Government, are determined by a wholly transparent process.

5. Support Australian business and inudstry to enhance investment in PNG, especially with PNG partners

I have been asked by several readers whether one way to reduce China's economic stranglehold on the PNG economy would be to directly subsidise Australian businesses already operating in PNG, and those keen to do so, to form substantial business partnerships with PNG companies and individual entrepreneurs.

I believe it is well worth examining provided it is substantial.

China in really gives PNG little direct and untied aid. Australia gives in various untied forms around $600 million a year. But China cleverly ties up PNG (and other South Pacific countries) through loans that have a commitment to the use of PRC contractors exclusively.

The result is that the PNG construction sector is really struggling and the number of Australian contractors has declined. And so has the banking and finance presence of Australian entities declined to close to zero.

I intend to write more about this idea soon, but as a first step the Prime Minister might direct his ministers and officials to discuss the feasibility of such a programme with the Australia-Papua New Guinea Business Council.

Conclusion

The PNG Foreign Minister might have done Australia a significant favour by being so open about his view on the PNG-China relationship, grovelling though it was!

It is surely a "wake up call" to the federal government.

The Prime Minister in his Perth address and at the G& meeting in the UK has been on message.

But the time has come to match the rhetoric with substantial and practical programmes and projects!