PNG rejects it will settle refugees under Labor's new asylum seeker plan PNG PM Peter O'Neill has rejected key elements of Prime Minister Kevin Rudd's new asylum seeker plan. PAPUA New Guinea has rejected two key elements of Prime Minister Kevin Rudd's new asylum-seeker policy - that PNG will settle those deemed to be refugees and that none will end up in Australia. PNG Prime Minister Peter O'Neill has told Fairfax Media he has not agreed to settle all asylum seekers who are found to be refugees after processing on Manus Island. And he says Australia will need to take back a share of them. ``There is no agreement that all genuine refugees will be settled in PNG," he said. PNG would work with the UN High Commissioner for Refugees to engage with other countries willing to take part in resettling those refugees, Mr O'Neill told Fairfax. Christmas Island is bracing itself for the ripple effect that stopping asylum seeker boats will have. ``That includes Australia, New Zealand and all the other countries who are signatories to the UN conventions on refugees. Mr O'Neill said he believed Australia had an annual quota to settle about 20,000 refugees. ``Under that process, they will get some and New Zealand has indicated they would take some. Mr Rudd has insisted there is ``one simple principle" in his new regime - that all asylum seekers arriving by boat would be diverted to PNG and settled there if found to be genuine refugees. Mr O'Neill derided federal opposition claims that refugees would seek to use PNG as a pathway to Australia. ``It is certainly an overreaction," he said.