Australia must shift its focus from being an aid donor to Papua New Guinea towards becoming an economic partner, the federal opposition says.
In a speech to the Lowy Institute for International Policy in Sydney on Wednesday, opposition spokesman for Foreign Affairs and Trade Julie Bishop outlined the coalition's plans for Australia's relationship with the island nation.
During the speech, Resetting the Relationship: The future of Australian engagement with Papua New Guinea, Ms Bishop said that as PNG's economic future brightens, our relationship with it must change.
"Australia's development assistance to Papua New Guinea, estimated to be $482 million in 2011 to 2012 has declined as percentage of PNG's GDP over the years," Ms Bishop said.
"With the revenue from resource projects set to boost its economy even further, Australian aid will play a comparatively lesser role in PNG's development."
Ms Bishop said a Liberal government would strive to reset Australia and PNG's relationship "based on economic and strategic partnership rather than aid donor and recipient".
PNG is facing economic growth but sections of its population continue to battle poor health and education and high unemployment, Ms Bishop said.
"It is on the verge of a mining and resource boom that should generate massive foreign exchange inflows with the potential to radically alter the course of its economic and social development.
"While there has been over 20 years of mineral exploration in the country, the PNG LNG (liquid natural gas) project alone is expected to double the country's gross domestic product and triple its exports."
However, at the same time, she said unemployment is high and "civil unrest is growing".
"From my perspective, our relationship with Papua New Guinea must be one of our highest foreign policy priorities."
The speech comes after Ms Bishop's recent visit to PNG where she visited the country's first LNG project under construction in the Southern Highlands.
(http://news.ninemsn.com.au/)
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