China’s PNG focus is clearly aimed at Australia

There is a high level of exchange between the people of Daru and Australians living on the islands of the Torres Strait...commercial arrangements, health and education services, and family links.

If China is about to gain more than a foothold on Daru - and that is what a $200 initial investment would give it - relations with the people of the. Torres Strait and Northern Australia will surely change for the worse.

Daru is the capital of the Western (Fly River) Province. There is already a massive Chinese presence in the province, A China construction company is carrying out the largest infrastructure project in the province - the upgrading of the road between Kiunga and the giant Ok Tedi Mine at Tabubil. There are also substantial links between the provincial administration and the PRC Embassy in Port Moresby from the Governor down.

The formal PRC Involvement with the "development" of Daru is at a very early stage - nowhere near as advanced as China's involvement in the Ihu special economic zone.

That is significant. It is known that DFAT has been working for some time on a package of support for Daru. Sadly, Daru is a really poorly developed and serviced community. It has an inadequate water supply, no community-wide sewerage system, poor communications, an inadequate hospital targeted for redevelopment, and inadequate education for the children of the island. There are no industries to speak of.

As a consequence, the people of Daru suffer from an alarming array of diseases and illnesses including typhoid. There have also been instances of polio.

The contrast between the services enjoyed by Australians living on the islands of the Torres Strait could hardly be greater. The potential for mass illegal migration from Daru, and the Western Province, to the Australian mainland simply cannot be ruled out.

The new Australian Government needs to give the greatest possible priority and attention to the position on Daru.

It needs to offer a comprehensive package of support measures that address the deplorable state of community services and provide the kind of infrastructure that will enable living standards to be improved for the 20,000 people of Daru, and create services that will attract industry such as fish and other seafood processing.

I am aware of at least one proposal that would really give us a "presence" on Daru. It involves a partnership be5ween the Australian Government and the private sector in PNG.

Nothing short of a services, infrastructure and industry support package in the region of $A200-$300 million would be sufficient. This is not the time for peace meal projects and a halfhearted commitment.

The initial PRC commitment, or interest, does not address the needs of the people. It will do zero to raise living standards, to open up Daru to the world, but this could be done with a new airport in particular.