Fifteen foreign nationals have been detained and authorities are searching for others who abandoned the fishing vessel that ran aground in the Daintree.
Mr Dutton, who has long boasted of the government's ability to stop asylum seeker boats reaching Australian shores, says something has gone wrong in the Daintree case.
"Clearly there's been a failing when surveillance has not worked as it should in identifying this vessel or allowing this vessel to get as close to the coastline as it has, but we'll work through all of that, but it's a reminder that these people smugglers haven't gone out of business. there are 14,000 people in Indonesia right now, who are waiting to get onto vessels to come to Australia." He said.
Investigations into whether the boat is an illegal fishing vessel or if it was carrying asylum seekers are continuing, but newly appointed Defence Industry Minister Steve Ciobo has told Sky News its passengers should be taken into custody and sent for off-shore processing on Nauru.
Australia is legally obliged to process onshore the protection claims of people who arrive in the country.
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