Cost of detaining asylum seekers is blowing out by $1 billion The cost of detaining asylum seekers is blowing out by $1 billion Source: The Courier-Mail THE Federal Government's boat people policy is sinking Treasurer Wayne Swan's budget, with the cost of detaining asylum seekers blowing out by $1 billion. As the number of arrivals continues to mount -- 10 more asylum seekers arrived by boat yesterday - The Advertiser can reveal the five-year contract with private firm Serco to run most of the country's detention centres until 2014 has blown out by a further $700 million. Contracts for providing public health services have also been revised up by $200 million and the cost of providing residential homes will rise by $50 million. The latest figures for the revised private sector contracts, which all fall within this budget year, are contained in an Australian National Audit Office report released this week, which also criticised the Government for allowing the costs to rise before contract variations were agreed. Other contracts reveal that the cost for providing contracted health services to detention centres has been revalued up for the five years until 2014, from $70 million to $272 million. Residential hosting contracts for the same period have also been revised up, from $44 million to $93 million. The dramatic blow-out comes on top of a disastrous week for the Treasurer, who was forced to defend a collapse in the budgeted revenue from the mining tax and then re-assure voters that he would not raise income tax to help plug the budget. The report found more than 500 people have been in detention for more than two years, while the average time is 83 days. It found most asylum seekers are generally happy with their treatment, but some have complained of gossiping staff, threats and intimidating behaviour. Some were also upset by inconsistent "prices" in centre stores, with the price of cigarettes ranging from just 2.75 "points" on Christmas Island to 14.3 points in other detention centres. Asylum seekers can earn up to 50 points a week through various activities. PAGE 39: Laurie Oakes