School children in Papua New Guinea are reportedly turning to prostitution and illicit drugs to raise funds to pay for school fees.

PNG's community based program ''Tingim Laip'', funded by Australia's international aid agency AusAID, says it has found evidence that young school children are engaging in prostitution to pay for school fees.

Its spokesperson Joe Mocke says sex for money is a growing industry in PNG's Madang province.

"In one of our surveys we found that girls who were still at school were doing what they were doing just to find school fees," he said.

"Those came from broken down families and those were not living with their real parents."

Our reporter in Port Moresby, Firmin Nanol, says the PNG government has been urged to make education affordable to discourage such dangerous behaviour.

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