A unique opportunity to restructure our relationship with Papua New Guinea

In the next few weeks we can expect the Foreign Minister to make her first official visit to Papua New Guinea our closest and most important regional neighbour.

The PNG Prime Minister has been elected with a 97 to 0 majority. The new cabinet is about to be appointed. Despite both key events in the five-year political cycle, there are a number of seats still to be declared.

One assumes that the Australian Foreign Minister has been advised by DFAT on key aspects of the relationship. Whatever happens, this is an opportunity to reset the relationship with a newly elected secure government in PNG.

In doing so the Minister can draw on a very comprehensive statement to Parliament made by James Marape the day after his re-election.

Putting aside the usual rhetoric about PNG being the worlds "richest Black Country" the statement contains a long list of priorities. Sadly, there is not a substantial outline of foreign policy priorities. ...a matter of some concern to Australia as the pro-China influences in the last government have been re-elected, a factor that will not have gone unnoticed in Beijing.

I have three suggestions Minister Wong might consider raising with the new PNG Government as part of an overdue reassessment of the priorities in our bilateral relationship.

I believe we must resist the temptation to match what China has been seeking to do in PNG. It is probably too late in the day for that......with one exception, China's stated interest in the strategically important port of Daru, and the nearly Ihu-Kikori special economic zone.

China has so far invested a modest $30 million in the Ihu-Kikori economic zone, encouraged by the local MP and PNG Foreign Minister, Soreo Eoe, who has been re-elected. Australia needs to urgently consider a comprehensive counter proposal given the proximity of Ihu-Kikori to the Northern Australia.

Even though the pro-China Foreign Minister has been re-elected so has the influential Governor of the Gulf Province, Chris Haiveta. He wants major investment to fund the downstream processing of the Gulf Provinces vast gas and, potentially, oil resources.

In that regard it is significant that Marape travelled to Singapore to hold talks with Twiggy Forrest's green energy entity on substantial investment in green energy projects in Papua New Guinea within days of his re-election.

Hopefully the development of the massive Purari hydro power project was on the agenda. As readers will know I have long advocated that Australia looks seriously at helping form a consortium to develop Purari - and secure long term affordable and reliable electricity in a country where power is available to just 20 per cent of the population.

If Australia doesn't then China might!

With regard to Daru, Australia needs to get serious about a substantial infrastructure and social investment on Daru, the closest town to Northern Australia. The provincial Governor is well disposed to Chinese investment which is happening already in the road construction area.

Daru has poor basic services. Despite that the Governor was re-elected as were two other members from the province.

China has a massive head start in the province. Australia probably has just 12 months to try and catch up in vital community areas such as health care, school education and water and sewerage services. So far these have not been priorities for the PRC Embassy or PRC businesses.

If that changed Australia would face an even more substantial PRC presence right on its border.

We need to be realistic. China has a substantial foothold right on our border. We have really fumbled the ball at a very dangerous time. We need to look beyond what China is focussing on and develop a substantial people to people engagement.

The second priority Canberra might consider is one Prime Minister Marape highlighted in his speech - electoral reform.

The recent elections were conducted in a less than satisfactory matter. The whole process eroded public confidence in parliament and democracy - out of date rolls, suspicious counting practices, underfunding, and delays in counting that were unexplained and suspicious.

Given the Prime Minister's commitment in his speech Australia should grab the opportunity to offer PNG assistance from the Australian and state electoral authorities for detailed electoral reform that will help ease community unrest and secure a measure of political stability at a time when it is needed given the economic and fiscal challenges PNG faces during the next five year parliamentary term.

Prime Minister Marape has a big enough majority to be bold when it comes to cleaning up the electoral processes. Australia can offer him expert help in doing so.

The third area relates to the acquisition by Telstra of Digicel, the largest telecommunications operator in PNG.

Minister Wong needs to encourage Telstra not to regard the Digicel investment as a "passive" one designed to block a PRC acquisition (not that that was likely in my view).

Telstra needs to be encouraged to upgrade services and focus on meeting the unique needs of a vast and diverse nation.

One gets mixed views on Digicel's performance in PNG and smaller island nations where it operates.

Canberra could usefully encourage Telstra to look at enhanced community engagement, a downward revision of charges, and seek the support of the PNG Government in doing so.

The mixed two billion investment by Telstra and the Australian Government is our largest individual "investment" in our closest neighbour. It needs to be successful in every way.

Hopefully it will be a major link between Australia and the people of Papua New Guinea…one that keeps our interest in PNG high and appreciated by the 80% plus of the population for its services.

Whatever Minister Wong does in reshaping the bi-lateral relationship it needs to be firmly focussed on the Australian National Interest and the future stability and economic progress of Papua New Guinea.

The two are not incompatible.