PNG PM says asylum policy is working

Asylum seekers are starting to realise they are being conned by people smugglers amid early signs some would rather go home than be relocated in Papua New Guinea, Prime Minister Peter O'Neill says.

Mr O'Neill has told local media some asylum seekers processed at an Australian-run detention centre on Manus Island may be genuine refugees.

"There are already positive signs with some of those processed in Manus now realising that the boat trips are futile," Mr O'Neill told the Port Moresby based National Newspaper.

"They realise now that they are being conned by people trying to profit from them."

He said some people being processed in Manus may turn out to be genuine refugees.

"In such instances, our laws and the relevant conventions on refugees will apply," he said.

Lawyers working for PNG's opposition have started a legal challenge against the centre, months after a prior challenge was dismissed by the courts.

PNG Foreign Minister Rimbink Pato has said he expects legislation to be introduced in parliament in September to protect the Manus centre from legal challenges.

A special visa class will also be created for asylum seekers resettled in PNG.

So far 223 asylum seekers are being housed on Manus Island, a province of PNG located just two degrees from the equator.

Last week Australian Immigration Minister Tony Burke said there was some evidence asylum seekers in Indonesia were demanding their money back rather than risk the journey.

"When I say the demands for money back are widespread, they are absolutely widespread," Mr Burke said.

There is no doubt that the message is getting through, he said.

PNG's opposition whip Tobias Kulang says the scheme is not covered by the Pacific nation's constitution.

"They are going to use their numbers on the floor of parliament to legitimise (the asylum seeker deal)," he said last week.

"As the opposition, we are very, very concerned.

"This a complete abuse of power."