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The opening of an academic building and the Alessandro Clinic was overseen by O'Neill, during which he congratulated the university on its efforts to enhance the delivery of tertiary education.
"Education must be at the forefront of embracing technology and this is what Divine Word University is doing and online programs will open up new opportunities for more students to study," he said.
"Through education we can change the country and Divine Word is leading the charge."
He also reaffirmed the government's commitment to education, saying fees should not pose a barrier for children attending primary and secondary schools.
"Each year our government spends more than 3 billion Kina ($A1.4 billion) on education alone and this is the most substantial investment in education in our history," he said.
"Free education is not a new concept; it has been there since independence but no government has made a serious attempt [to] deliver the program for our children.
"It is the right of every child in this country to be educated and the only way is to make means available."
"If school fees are a problem then the government must take the problem away so we can get children into school."
Coupled with a HECS-styled ‘tuition loan program', the DWU's online programs will entice more students to take up tertiary education.
Announced in April, the government has pledged K200 million ($A97 million) to the program, allowing students to take out a loan and repay it over the course of their working life without interest.
"Already K200 million has been made available for the tuition loan program to ease the burden of many parents who have difficulties in sending their children to university," O'Neill said.
"Similar programs are well established in Australia and many developed nations and have proven to be a success.
"This program provides the opportunity to ensure you have funding and access to better education opportunities."