Liam Fox reports that 15,000 people fled their homes on Manam Island, off PNG's north coast, after a volcanic explosion in 2005.
They have been in temporary care centres at Bogia, on the mainland, ever since.
Their presence has angered local villagers.
Last week, a fight between two high school students escalated into a brawl in which one man was stabbed to death.
Reports say a mob of 500 people then set upon a care centre, burning 160 homes, killing animals and destroying food gardens.
Last year, six Bogia men were arrested after a Manam woman was bashed and her three-year old daughter beheaded.
- Australian Broadcasting Corporation
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