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Papua New Guinea to rewrite policy for resettling refugees from Manus Island detention centre

There is likely to be a further hold-up in allowing asylum seekers inside the Manus Island detention centre to be resettled in the Papua New Guinea community.

Hundreds of asylum seekers trying to reach Australia by boat are being sent to immigration detention on Manus Island.

The Australian Government promised to put in place a resettlement process in PNG for those found to be refugees, but no-one has been resettled and the process has been tied up inside the PNG cabinet.

PNG prime minister Peter O'Neill has now announced plans for a new policy with increased focus on consultations and building public awareness.

Prime Minister Tony Abbott and Immigration Minister Scott Morrison have held face-to-face meetings with the PNG government this week.

The Coalition is spending more than $500 million on the detention centre this financial year.

Labor said the delay shows the Federal Government had failed to manage the relationship with PNG and it appeared the resettlement plan had been mothballed.