PNG asylum solution to cost Australia A$1b

Australia’s decision to send asylum-seekers to its struggling Pacific neighbour Papua New Guinea will cost the government about A$1.1 billion (HK$7.6 billion) over four years, a budget statement released on Friday showed.

So far only two groups of male boatpeople have been sent to PNG’s Manus Island since Prime Minister Kevin Rudd announced the new policy, which has been criticised by refugee advocates, two weeks ago.

But under the directive designed to deter people from making the dangerous boat journey to Australia, all asylum-seekers will be processed in PNG and ultimately resettled there even if found to be genuine refugees.

“The total estimated operating cost of the arrangement is A$175 million this year-14, and A$1.1 billion over four years,” the government said in an economic statement ahead of elections later this year.

The statement said this would be partially funded from a A$423 million reduction over the four years to 2016-17 in the operating costs of the Australian onshore detention centres asylum-seekers have previously been sent to.

“Capital costs of A$194 million are included 2013-14 to expand Manus Island facilities,” it added, with the camp’s current capacity of around 500 expected to be expanded to house at least 3,000.