As East Timor's prime minister revealed his plans to tackle corruption in the fledgling nation, MPs from his own coalition and the opposition have criticised the government's slow response to the problem.

Our reporter in Dili, Stephanie March, says Prime Minister Xanana Gusmao has declared 2008 as the Year of Administrative Reform.

Speaking at a conference in Dili on Thursday he outlined his plans to establish a civil service commission to increase accountability in the public sector, boost the powers of the inspector general's office, and establish an anti-corruption commission.

"We must make sure that corruption doesn't pay in Timor-Leste - that the risks of engaging in corrupt behaviour are real and substantial," he said.

"We need to take bold action and strong measures, this is not the time for small incremental change.

"It is critical that we do not allow corruption to take root in our new democracy. And now we have the strongest political will to prevent this from happening."

The conference comes in the wake of allegations from members of the opposition and Xanana Gusmao's own coalition MP's that the government has been too slow on tackling issues of corruption and nepotism.

The Timorese Social Democratic Association - a member of the ruling coalition - has already signed an agreement with opposition Fretilin party to form an alliance for the next election.

Another coalition group say they want MPs from the prime minister's own party to move a motion of confidence in the parliament to see if he still has the support he needs to continue governing the country.

Steve Bracks, a former premier of the Australian state of Victoria, and now adviser to the prime minister on civil service reform and anti corruption, has told Radio Australia's Asia Pacific program the moves are not a cause for alarm.

He says the programs put forward by Mr Gusmao are all about public scrutiny, and will allow the people of East Timor to receive information about how government finances are being used.

"I think you can see now a government that is intent on having robust public institutions to root out any potential corruption in the future," he said.

"What the country has is some good leaders with good intents to make sure the get the right institutions, and that's a great move."

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