The federal government has conceded asylum seekers are ''hurrying to get on boats'' following the arrival of the largest number of people in one boat in more than a decade.
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The arrival of the boat carrying 221 people came as the navy revealed one of its over-worked patrol boats used to stop asylum seeker boats had cracks in its engine room, while two other vessels had minor cracks.
More than 7300 asylum seekers have arrived by boat so far this year, compared with about 4500 in the whole of 2011. Yesterday, authorities intercepted another two asylum seeker boats carrying a combined total of 55 people.
Navy patrol boat ACV Hervey Bay stopped the two vessels, one northwest of the Cocos Islands and one to the north, in the afternoon.
There were 49 people on board the first boat and six on the second.
The asylum seeker issue will come to a head again on Monday with the publication of the report from Angus Houston, the former Defence chief, into options to resolve the impasse.
The report is believed to favour the hardline approach of sending asylum seekers to other countries, such as the government's Malaysia plan.
Air Chief Marshal Houston and two other eminent Australians were asked by Prime Minister Julia Gillard to conduct a six-week inquiry after Parliament failed in June to agree on a policy to try to halt the record arrivals of asylum seekers by boat.
Labor will not support the Coalition's three-point plan including processing people on Nauru and the Coalition will not support the Malaysia plan.
The government must win support from the Coalition or perform a humiliating back-down because the Greens are opposed to sending asylum seekers offshore.
Opposition Leader Tony Abbott again ruled out a compromise, regardless of the Houston inquiry findings.
''We don't need an expert panel to tell us what our policy should be,'' he said.
''We've got one, it worked in the past, it will work in the future, it's the policy we're sticking with.''
Opposition immigration spokesman Scott Morrison said the best option for the Houston inquiry might be to recommend an election.
He said the government should reinstate the Coalition's border protection policies which include offshore processing on Nauru, temporary protection visas and turning boats around when it is safe.
The Christmas Island detention centre is nearly full and authorities have to fly people to the mainland.
The large number of people on the latest arrival suggests passengers and people smugglers have not been deterred by the death of about 90 people in June when a crowded boat capsized. More than 300 people have died on the voyage in the past seven months.
Home Affairs Minister Jason Clare said it appeared the people smugglers were watching developments in Australia
''People smugglers are pitching the idea of a closing-down sale,'' he said.
''You've got people who are hurrying to get on boats as quickly as possible before this Parliament implements legislation that would introduce a real disincentive for people to make that dangerous journey at all.''
He said Australians wanted the issue fixed.
The navy patrol boats and sailors would not have to work as hard if politicians solved the impasse, Mr Clare said. ''That's what Parliament has an obligation to do when we return next week.''
A spokeswoman for the Houston inquiry confirmed the report would make firm recommendations.
The report is expected to be considered by cabinet and the opposition frontbench after its public release at about noon on Monday.
Labor MPs said Ms Gillard would be congratulated at Monday's caucus meeting for taking on conservative premiers over electricity prices and the National Disability Insurance Scheme.