Australia, PNG sign development agreement

Updated August 20, 2008 16:02:15

PNG Prime Minister Sir Michael Somare and Australia's Kevin Rudd have signed an agreement Mr Rudd says will be 'signficant' for PNG. [Radio Australia]

The Australian Prime Minister Kevin Rudd has signed the first of a series of development agreements with Pacific Island nations.

Together for the Pacific Islands Leaders Forum in Niue, Mr Rudd and Papua New Guinea's Grand Chief Sir Michael Somare put their signatures to an agreement which Mr Rudd says will bring significant benefits to the country.

However, he also says Australia needs to see progress from all countries he will sign agreements with.

"This recasts our entire development assistance relationship with these countries on one core principle - mutual responsibility," he said.

"We'll continue to support these countries in a co-operative framework but on the condition that we see measurable improvement over time in the key development indicators.

"On other critical barometers of economic development therefore we can either simply stand to one side and say, 'that's the way things are' or we can try and do something about and certainly our resolve is to do something about it."

Mr Rudd says some Pacific Island nations are heading in the wrong direction on improving health and education and he will want to see proof of progress in these areas.

Wednesday afternoon Mr Rudd will sign a similar agreement with Samoa and says he is working his way through six more agreements with countries in the region.