The Department of Foreign Affairs and Trade will cut back on entertainment expenses for diplomats as part of efforts to pare $32 million from its budget over four years.

Foreign Affairs Minister Stephen Smith has already announced some 20 positions will go from embassies around the world as the government seeks to rein in spending to help bring inflation under control.

 DFAT deputy secretary Doug Chester yesterday confirmed the job cuts, which will target embassies in Beijing, Mexico, Berlin and Nairobi, and said diplomats would also have to scale down spending on entertaining and buying dinner for foreign dignitaries.

Queensland Liberal senator Russell Trood questioned how the cuts could not have an impact on Australia's foreign policy efforts. "Are you telling the committee that Australia's embassy in Berlin is one of the missions affected.

 Australian missions in these places are so well resourced... that there is going to be virtually no impact on their capacity to perform their functions," Senator Trood said.

He was also critical of the government's decision to take one official from Australia's high commission in Kenya, where there is a political crisis.

Mr Chester admitted that the embassies would have to scrap some work.

"The posts will reprioritise their work. The most important work will continue to be done and some of the work of a lesser priority will be done to a lesser extent," he said.

The development came as Mr Smith left for the Solomon Islands last night as part of a Pacific Islands Forum review of the Australian-led regional assistance mission (RAMSI). Mr Smith said he would meet the foreign ministers of Papua New Guinea, Tonga, Niue and Solomon Islands in an effort to improve co-ordination and oversight of RAMSI operations. Australia led an international mission to Solomon Islands in 2003 to restore law and order after years of anarchy. Relations between Solomon Islands and Australia have been strained, but have thawed since former prime minister Manasseh Sogavare was dumped in a vote of no-confidence in December.

Mr Sogavare expelled an Australian diplomat in 2006 and his government gave sanctuary to former attorney-general Julian Moti, who was wanted on child-sex charges and has since been deported to Australia for trial.

Mr Smith told parliament yesterday that progress on promoting development in the Solomon Islands would be on the agenda of annual Australia-US ministerial security talks to be held in Canberra tomorrow.

Source: Australian Financial Review