A deal with Malaysia to swap asylum seekers for processed refugees is appalling and will haemorrhage cash from Australia, federal Opposition Leader Tony Abbott says.
Mr Abbott labelled as a "people-merry-go-round" the government's plan to transfer 800 boat people for processing in exchange for taking 4000 declared refugees from Malaysia.
It was a desperate attempt from Prime Minister Julia Gillard to solve the problem of illegal boat arrivals.
"This is an appalling deal for Australia," Mr Abbott told reporters.
"The problem with this deal is that for every one they take we take five of theirs and we pay for the whole lot."
Australia was haemorrhaging cash because Ms Gillard was too proud to pick up the phone to the president of Nauru.
"If we were to send illegal boat arrivals to Nauru there would be no question of bringing people back from Nauru because there aren't any currently in Nauru."
The Howard government processed illegal boat arrivals on the island nation of Nauru under its so-called Pacific Solution but the government has previously ruled out the option, saying it was not suitable for processing refugees because it was not a signatory to UNHCR refugee conventions.
Mr Abbott said Malaysia also was not a signatory to UNHCR conventions.
"It's just another panicked, desperate thought-bubble from a government which is literally drowning in problems of its own making," he said.
Mr Abbott said the only way to deal with the asylum-seeker issue was to return to Howard government policies.
"Go back to the policies that worked, the policies that the coalition supports, that's Nauru, Manus (Island in Papua New Guinea), temporary protection visas and a willingness to turn boats around when it's safe to do so."
Asked if a coalition government would scrap the deal with Malaysia, Mr Abbott replied: "There is no Malaysian solution.
"Let's see the Malaysian solution and then you can ask me that question."
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