Australia said today it was "profoundly disappointed" that the High Court had blocked its plans to send asylum-seekers to Malaysia, adding the ruling could affect its offshore processing plans.

chris bowen 1Immigration Minister Chris Bowen said that the cabinet would urgently consider the decision by the full bench which found that Australia could not send boat people to countries not legally bound to protect them.

"Let's make no bones about it, today's decision by the High Court is a profoundly disappointing one," Bowen told a press conference.

"This is a significant blow to our efforts to break the people-smugglers' business model."

Bowen stressed he was proud of the policy under which Australia hoped to send up to 800 boat people to Malaysia in exchange for Canberra accepting 4,000 registered refugees from the Asian nation.

He said the government had commissioned urgent legal advice on the matter and refused to say how the administration of centre-left Labor Prime Minister Julia Gillard would react.

But he said that since Canberra and Kuala Lumpur had negotiated the deal in good faith, he was "inclined" towards Australia upholding its end of the deal and still accepting 4,000 asylum-seekers from Malaysia.

Canberra respects court decision

In its decision, the High Court applied a new test to how protections of asylum-seekers were demonstrated in other countries, he said.

"This decision has potential ramifications for not only our arrangement with Malaysia but offshore processing more generally," Bowen said.

But he added: "While this is a blow it does not undermine our resolve to break the people-smugglers' business model through a regional arrangement."

The minister said he would not be resigning, adding that while it was a difficult job he had a responsibility to see it through.

"I respect the High Court decision but it doesn't mean I walk away from the fundamental points of the policy," he said.

"I'm proud of the policy, it is a good one."

- AFP

Australian High Court judgment