Army to build tent city for refugees
In a clear message to people smugglers that Australia's borders are closed, the army is to begin setting up camps at Nauru and Manus Island by the end of the week.
Preparing the facilities for up to 2100 asylum seekers will cost $530 million. Running the centres, where asylum seekers could stay for up to five years, will cost almost $1.8 billion.
Ms Gillard confirmed the sites would initially have tents.
Facilities at Manus Island, adjacent to a military base, are run down while at Nauru items have been taken by locals for their own homes.
Airconditioners and in some cases entire huts have been taken and one of the camps has become a school.