The Abbott Government will announce the closure of six immigration detention centres on the mainland and at Chirstmas Island in the federal budget next week.
Immigration minister Scott Morrison said the closures of the centres, expected to close between mid-2014 and mid-2015, would save $280 million.
In a statement to the Adelaide Advertiser, Mr Morrison said the government “will not back down to the pressure”.
Source: Department of Immigration
The move follows an announcement in December, when the government outlined its intention to close four onshore detention centres.
The budget is also expected to establish a new immigration body, operational from July next year, and abolish Labor’s family reunion program for asylum seekers.
The agency, called the Australian Border Force, is set to replace Customs by mid-2015.
In an address the Lowy Institute on the future of border protection, Mr Morrison also acknowledged that authorities have been turning back boats, “where it is safe to do so”.
Commission of Audit outlines spiralling costs
The Commission of Audit report stated that the detention and processing of asylum seekers arriving by boat was the fastest growing government program, in terms of spending, over recent years, jumping from $118.4 million in 2009-10 to $3.3 billion this financial year.
The estimated annual cost of holding one person in onshore detention has increased from $179,000 in 2011-12 to $239,000 in 2013-14, while offshore costs measure at more than $400,000.
The report, released less than a fortnight ahead of the Abbott Government’s first budget, stated that the costs of holding people in detention could be slashed by renegotiating contracts and “reductions in the services provided” to detainees.
Image from the Commission of Audit report, 2014.

It further recommended that:
- by renegotiating contracts and better targeting of services, the per person cost of operating the onshore immigration network be reduced to 2011-12 levels and similar efficiencies be sought for the offshore network
- this process also be supported by an audit of the scope and cost of services currently being provided and how these have changed over time
The Commission of Audit also recommended an examination into potential outsourcing of visa processing functions by the Department of Immigration.
It stated that the department grants around 4.7 million visas every year, costing around $530 million and generating in excess of $1.1 billion.
Policies ‘costly’, but effective
University of Sydney academic Anna Boucher has warned against cuts to services to detainees, citing existing “critical conditions” for asylum seekers at Nauru and Manus.
Dr Boucher said reports detail a lack of sanitary products, water, medical attention and psychological treatment.
“If those already quite meagre services were to be cut further, it would obviously be incredibly detrimental for asylum seekers,” she said.
Listen: Anna Boucher speaks to Stephanie Anderson.
Dr Boucher said the Commission of Audit had identified significant cost differences between processing onshore and offshore, but said it was unlikely that the Abbott Government would increase onshore processing and community release programs.
“Whilst costly, this is an electorally successful policy,” she said.
“The government has made much of its success in ‘stopping the boats’… What’s more likely is that we’ll see cost saving elsewhere. There are a lot of other areas of immigration which would be deserving of more funding, which have probably been neglected because of the strong focus on asylum.”
Greens: Inhumane and expensive
Greens Senator Sarah Hanson-Young also voiced concerns over the increasing costs of offshore detention centres.
“Offshore detention is so expensive, but of course, it’s incredibly inhumane as well,” she said.
“… You do have to wonder, with detention being that expensive, whether it’s really worth it for the Australian taxpayer and whether that type of cruelty is something the Australian taxpayer should be spending money on.”
Listen: Sarah Hanson-Young speaks to Stephanie Anderson.
Senator Hanson-Young said further scrutiny was needed, particularly given proposed cuts to other budget areas such as pensions, education and health.
“It’s really about priorities,” she said.
“They’re willing to spend billions of dollars keeping people locked up in inhumane conditions, out of sight, out of mind in remote locations. You don’t save money by cutting services. You’d save money by shutting down the detention camps on Manus and Nauru.”
Turnbull: Policies harsh, not cruel
Liberal frontbencher Malcolm Turnbull also weighed in on asylum seeker and border policies ahead of the May 13 budget, telling the BBC’s HARDtalk that “some would say they’re cruel measures".
“I would say they're harsh, I wouldn't go so far as to say they're cruel,” he said.
“Let's not argue about semantics. The fact is if you want to stop the people smuggling business you have to be very, very tough.”
Listen: Malcolm Turnbull speaks to the BBC.
Mr Turnbull said the government's controversial Operation Sovereign Borders complied with international law.
“I don't think any of us are entirely comfortable with any policies relating to border protection,” he said.
“(But) the fact is if you want to stop the people smuggling business you have be very, very tough.”
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