The Pacific has rapidly become a diplomatic battleground. China is currently in talks with Australia's closest neighbour Papua New Guinea, whose Prime Minister yesterday addressed Parliament, the first Pacific nation leader to do so.

It comes as the government is set to announce a funding boost for the next-generation collaborative combat aircraft known as the Ghost Bat. Pat Conroy, Minister for International Development and the Pacific says it demonstrates the government's strong commitment to defence.

Guest: Pat Conroy, Minister for International Development and the Pacific