The Papua New Guinea health minister has told parliament that public health will not be compromised by cuts of $US16 million dollars.
The government had reduced payments to the religious organisations that provide a large part of health services across the country.
Catholic Health Services director, Justine McMahon, said it would mean staff being laid off and other staff having to accept cuts in wages of up to 40 percent.
But the minister, Michael Malabag, told parliament that the health of the people is not being compromised or put at risk.