The Vanuatu agreement is the most significant regional achievement of the new government

This week the Foreign Minister and the Pacific Minister have visited Vanuatu, the Federated States of Micronesia and Palau.

Significantly Penny Wong was accompanied by Shadow Ministers Simon Bermingham and Michael McCormack.

The most significant part of the tour was the two days spent in Vanuatu.

Vanuatu, after PNG, is our closest Pacific neighbour. It was prior to Independence controlled by France and the UK.

Australia had minimal engagement despite our proximity to Vanuatu.

It is a parliamentary democracy and is a member of the Commonwealth. It maintains good relations with France and the UK. Australia's aid totals about $46 million a year. That is a modest figure.

Vanuatu has been a major target for China because of its strategic location. Under former Vanuatu governments China was making real progress. There were even reports China would seek to build a naval base.

Australia was slow in responding. But we eventually agreed to expand the main port, enabling Australian naval vessels to berth. That was opened by Penny Wong this week.

The new government has given Vanuatu the priority it deserves.

China had been seeking a military-security pack with Vanuatu. The former Vanuatu Government was seriously considering it. It would have been a serious threat to the Australian national interest.

There is a new government in Vanuatu, one clearly more disposed to closer relations with Australia.

This week it signed a comprehensive security and defence co-operation agreement with Australia.