The federal Opposition says Prime Minister Julia Gillard has no excuse not to reopen the Australian-funded detention centre on Nauru, with its Government taking the first steps to sign the United Nations convention on refugees.
Nauru's reluctance to sign the convention has been among the reasons why Ms Gillard has not taken up the option of reopening the immigration centre there.
''The ratification is in line with the Government's list of priorities that address the signing of the various UN conventions on human rights issues,'' Mr Stephen said.
Opposition Leader Tony Abbott said Ms Gillard had ''finally run out of excuses'' and should scrap her plan to send 800 asylum-seekers to Malaysia in exchange for 4000 refugees.
''Compared to Julia Gillard's Malaysian people swap, reopening the centre in Nauru is humane, cost-effective and proven to work,'' Mr Abbott said.
A spokesman for Immigration Minister Chris Bowen said the Government was committed to a regional approach to stopping people smuggling.
A Kurdish mother and her son, who have been told their asylum claims will be processed in a third nation, are challenging the decision.
He said exemptions would be counter-productive as they would create loopholes for people smugglers. However, children would be considered on a case-by-case basis.
''That would take into account their personal circumstances, vulnerabilities, support networks and what was in place and what would be the best situation to deal with each individual minor,'' Mr Bowen said.
Greens senator Sarah-Hanson Young said reports of talks with the United Nations High Commissioner for Refugees (UNHCR) and Malaysia allowed the Federal Government to end the deal.
''Walking away would ensure we honour our international obligations under the refugee convention and stop this waste of taxpayers' money,'' she said yesterday.
''The Greens will pursue our opposition to the Malaysian deal, through our amendment Bill currently before the parliament and encourage all concerned members of Parliament to support it.
Anger over the Malaysia deal boiled over at the University of NSW yesterday when the Mr Bowen needed a police escort to keep protesters at bay while giving a speech on Australia's refugee resettlement program.
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