He said Canberra's lack of attention to the region - and especially its policy of shunning Fiji - had weakened Australian influence in the Pacific and had created a power vacuum that bigger powers were moving to fill.

Countries such as China and Russia were building relations with the smaller island states and strengthening their presence in Australia's backyard.

However, Australia's Uniting Church has criticised discussions between the country's Foreign Minister Kevin Rudd and his Papua New Guinea counterpart, Ano Pala, over the possible processing of asylum seekers on Manus Island.

Mr Rudd met Mr Pala on the sidelines of the ASEAN foreign ministers' summit in Bali.

Mr Pala says he was provided with fresh information about plans to reopen the processing centre.

He says the pair discussed proposals to take to their respective cabinets. The plan includes consideration of human rights concerns.

"We both agreed to give this arrangement a human touch," he said.

Commenting on the meeting, the Uniting Church in Australia says reopening an old processing centre is a bad idea.

The Reverend Elenie Poulos, from the church's national justice and advocacy agency, says Manus Island is not the best place to process asylum seekers, based, she says, on the immigration detention centre Canberra used there 10 years ago.

"The Pacific Solution was no solution and Australia, to meet its obligations under the refugee convention, must assess asylum seekers who come to our country," she said.

Source: ABC Melbourne and Australia Network News