The prime minister of Papua New Guinea has flagged his government must take an axe to the public service amid declining revenue from plummeting commodity prices.
The days of "big government", wastage and uncontrolled spending in the public service have well and truly passed, Peter O'Neill declared at a national summit in Port Moresby on Wednesday.
"We must cut the cost of the public sector," he said.
His government was grappling with the "reality check" of falling global commodity prices which have resulted in PNG's revenue share from oil and gas decline from almost 1 billion Kina ($A463 million) in 2011 to a projected 260 million Kina last year and this year.
He acknowledged lessons had to be learned from public sector cuts 15 years ago.
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Mr O'Neill said a centralised system of delivering public services was failing in PNG.
"We do not need so many experienced bureaucrats in Waigani," he said.
Instead experienced officials were needed in the regions, provinces and districts to build capacity.
Mr O'Neill reflected on PNG's challenges coping with drought as well as recent heavy rainfall which produced flooding and landslides.
He also hailed the decision by management of the controversial Ok Tedi mine to resume operations at the start of next month.
The mine halted operations mid last year because of the impact of El Nino.
