Julia Gillard clashes with PNG Prime Minister Peter O'Neill on her visit to Port Moresby Julia Gillard listens to Papua New Guinea Prime Minister Peter O'Neill at a media conference in Port Moresby yesterday. DRUMS rang out, cries went up and, in a flurry of movement, dancers surrounded Julia Gillard in a "sing sing" as she left official talks in Papua New Guinea. It was a warm greeting that echoed the hero's welcome the Australian Prime Minister received as she toured Port Moresby yesterday. As she left talks with her PNG counterpart Peter O'Neill, Ms Gillard strode past a guard of honour formed by highly decorated Huli Wingmen. The Prime Minister meets traditional dancers on her three-day visit to PNG. The southern highlands warriors jumped and danced, creating a blur of painted bodies and elaborate headdresses topped with bird of paradise feathers. Ms Gillard mingled with traditional dancers from different provinces as she made her way from PNG's Parliament House. Julia Gillard buys fruit and vegetables and chats to stallholders in Gerehu Market, Port Moresby. But inside, Ms Gillard faced a more frosty reception from Mr O'Neill, who repeatedly expressed frustration at what he called Australia's "insulting" attitude to visa arrangements for his citizens. Mr O'Neill confronted Ms Gillard with complaints about her refusal to offer PNG faster visa processes at an official dinner the night before and said he raised concerns again yesterday. A relaxed Prime Minister has received a warm welcome from Port Moresby residents. Ms Gillard said her plans to introduce an online visa and cut paperwork for regular business travellers would help boost links with our closest neighbour. She conceded Mr O'Neill was not satisfied with this, but added that she did not want to risk an increase in medical refugees from PNG. At Marianville girls secondary school in Port Moresby, Julia Gillard is swamped by students and teachers. "PNG is a nation, to take one example, with greater rates of TB than us, so it's appropriate to do health checking before visas are extended," Ms Gillard said. Doctors in Cairns have already warned about an influx in PNG nationals bringing TB to north Queensland when they travel here for medical treatment. Ms Gillard also clashed with Mr O'Neill over his plans to introduce death penalty laws. But the pair did agree on a site and tender process to begin building a permanent asylum-seeker detention centre on Manus Island. But the country's opposition leader, who is mounting a legal challenge to the Manus Island centre, told The Courier-Mail the plans breached the country's constitution. Ms Gillard suggested there could be delays to the construction of the centre, which is due to start in July.