By Mary-Louise O'Callaghan,
South Pacific correspondent August 07, 2002

PRIME Minister John Howard will fly to Papua New Guinea next week to personally urge PNG's new Prime Minister, Michael Somare, to persist with the country's program of stringent financial management and economic reform.

Mr Howard announced his plans yesterday to detour to Papua New Guinea on his way to next week's Pacific Island Heads of Government Forum in Suva.



He yesterday personally called Sir Michael to congratulate him on his extraordinary political comeback.

The 67-year-old veteran of PNG politics in an 88-0 vote on Monday took the reins of the country he brought to independence almost 30 years ago.

Papua New Guinea's parlous financial state will be the focus of talks between the two prime ministers when they meet next Tuesday.

The Governor of the Bank of Papua New Guinea, Wilson Kamit, last week warned the new government was facing a financial crisis if it didn't move rapidly on the government deficit.

Mr Howard endorsed the new government's initial commitment to restoring stability and dealing with a government deficit that has ballooned to 210 million kina following last-minute election-related spending.

"I welcome Sir Michael's commitment to political stability, good governance and economic reform," Mr Howard said yesterday. "He is right in identifying these as priorities. I am confident that a continuing partnership in support of these objectives will be welcomed not just in Australia but also by the wider international community."

But just two days into his third term as Prime Minister, analysts were questioning Sir Michael's ability to mould an unwieldy coalition of 13 separate parties and 20 independent MPs into a government capable of solving Papua New Guinea's staggering economic and social problems.

Until now PNG's largest coalition government had only four parties. And, according to the analysts, "even that was pushing it", AAP reported.

"The great unknown in all this is what the price of this coalition arrangement is," one political analyst told AAP.

"The coalition seems pretty unwieldy. How on earth can he please them all?" another said.

Elected by 88 of the 103 sitting MPs, Sir Michael has a strong mandate to take the tough decisions desperately needed to rescue PNG's battered economy.

Sir Michael, who is yet to brief the media on his policy plans, has already warned he will review Sir Mekere's "free education" policy.

While Sir Michael has moved quickly to head off any overseas speculation of radical policy changes, local analysts also fear ongoing election unrest could slow reform.

"The election exposed failings in so many of the institutions, the police, the army, the Electoral Commission, you name it," one analyst said. "Somare's got such a repair job to do."

Sir Michael's plans for economic recovery will also hinge heavily on Australia, which injects about $400 million into PNG each year.

A typical taste of article from a so called exppert SP correspondent. Always being negative on SP island countries without acknowledging or even just a mention of the other side or part of the story, and a display of arrogance in contrast to a real understanding of economics and politics in island countries like PNG.

Did "the election expose failings in so many of the institutions, the police, the army, the electoral commission, you name it" Are you sure you got that right. The Army was not involved at all. Is that from an analyst as you quoted or your own judgement. I doubt if all your quotations aare from other analysts as you put it. Those analysts that you keep on referring to are yourself.

Why is that no foreign reporter did not even mention at all that the election process was orderly in all 17 out of 20 provinces, especially in the coastal and island provinces.

You are making a good living and name for yourself reporting negativity all your life out of the small island countries. Good on you.