RADIO AUSTRALIA

AUSTRALIA SAYS its plan to cut one- third of 487 aid advisors in PNG will free up $40 million.

The Australian government is promising that the money saved will go to the provision of drugs, medicines and educational materials, as the aid program refocusses on these areas.

PNG is a key target of changes announced in Australia's review of the use of aid advisors, released earlier this month.

Globally, more than a quarter of Australia's 952 advisor positions will be phased out or have already finished their contracts.

Many hundreds of other positions will be reviewed and redesigned after increasing criticism that advisors are ineffective and siphon aid money into Australian pockets.