An independent review into Australia's aid relationship with Papua New Guinea recommends a reduction in the proportion spent on consultants.
The Review of the PNG-Australia Development Cooperation Treaty reinforces earlier criticism that half Australia's aid budget to PNG has been spent on consultancies and training, rather than nation-building programmes.
It says the model of employing advisors to strengthen the capacity of local agencies is not working.
The Australian Parliamentary Secretary for International Development, Bob Mc Mullan says his government is already addressing the issue.
"We had already concluded that too much of the aid budget, not just in PNG, looked like it might be going to advisors and since we came to office the percentage has gone down quite dramatically and we've announced a review of the use of technical assistance and advisors and we want to make sure that we are getting value for money."
Bob McMullan says advisors are provided in response to requests from the PNG government, and Australia needs to work with it to manage demand.
