Australia abandoned plans for tougher new asylum laws today after a revolt by government lawmakers, as eight illegal immigrants were found on a remote island in the Timor Sea.
The new laws, drawn up to ease Indonesian concerns after Australia granted asylum to 43 Papuans, would have sent all asylum seekers who arrived by boat on mainland Australia to detention camps on the remote Pacific island nation of Nauru.
But Prime Minister John Howard dumped the laws ahead of a vote today in what was the biggest parliamentary defeat of his conservative government's 10 years in office.
"The whole bill is out," Mr Howard told reporters, adding he accepted that he did not have the numbers to pass the laws through the upper house Senate.
Three government lawmakers defied Howard and voted against the new laws in the lower house last week, and two abstained. At least two government Senators planned to defy Mr Howard in the Senate, where the government has a one-seat majority.
Mr Howard shrugged off any damage to his authority over his party, saying his ruling Liberal Party was proud of having a range of opinions, and that his ultimate authority came from voters at national elections.
Ties between Indonesia and Australia were strained and Indonesia withdrew its ambassador in a temporary protest after Australia granted asylum to the Papuan asylum seekers, who had arrived in the country's remote north by boat in January.
Mr Howard yesterday said the new laws were not crucial to Australia's close ties with its larger neighbour, but a day later said he did not know if Indonesia would be upset that the new laws were not passed.
"I don't know, and frankly that is a secondary consideration," Mr Howard told reporters. "This bill was not designed to get a tick in Jakarta."
Late today, Indonesia expressed regret over Australia's failure to introduce the tougher asylum laws.