Immigration Minister Chris Bowen has defended the Government's policy to process asylum-seekers offshore, saying the latest boat sinking in Indonesian waters was what he wanted to see avoided.
The Federal Government had to shelve its plans to process asylum-seekers in Malaysia when the High Court ruled it and all offshore processing invalid.
The Opposition would not agree to legislation seeking to overturn the court ruling, leaving the Government with no option but to return to onshore processing for now.
Mr Bowen said that sent a signal to people smugglers that Australia was open for business, which led to deaths at sea like those who drowned off Java on Saturday when their boat headed for Australia sank.
The boat was overcrowded with asylum-seekers from Afghanistan, Pakistan and Iran.
''This had been obviously what the Government had been concerned about, what we had been warning about and very concerned about that,'' Mr Bowen said.
''It's not a political statement. I'm not making any political points today.
''I'm simply saying that we have been concerned about danger of life on the high seas and obviously this is a terrible, terrible day, a terrible tragedy and something that all Australians would be deeply distressed about.
''We believe that in order to have a proper deterrent to stop people risking their lives at sea, then you need to have a properly constructed regional offshore processing arrangement.''
Newly appointed Home Affairs Minister Jason Clare called for the Government and the Opposition to cooperate to find an offshore processing plan both sides could accept. ''That's what the people of Australia would expect of us, to sit down and work through it maturely and sensibly,'' he said.
Opposition foreign affairs spokeswoman Julie Bishop said the tragic incident highlighted the need for the Government to accept the Opposition's policy and reopen the Nauru processing centre.
The Opposition wants offshore processing, but not in Malaysia because it is not a signatory to the United Nations refugee convention.
It also wants a return to the Coalition's temporary protection visas and a policy of turning the boats around at sea.
''It is time for the Government to acknowledge that its abandonment of offshore processing and now having an onshore processing policy means that there are pull factors at play,'' Ms Bishop said.
''I do not understand why the Prime Minister will not reinstate the policies that have been proven to work.''
The Australian Greens do not support offshore processing.
The United Nations High Commission for Refugees issued a statement expressing its sadness at the loss of life in the boat sinking.
''The incident is a tragic reminder of the desperate and dangerous measures people will resort to when they are fleeing persecution in their home countries and seeking better protection and a brighter future,'' the statement said.
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