Economy and Migration
There is no economic activity in the Territory. As Ashmore Reef is the closest point of Australian territory to Indonesia, it was a popular target for people smugglers transporting asylum seekers to Australia despite its only wells being infected with cholera or contaminated and undrinkable. Once they had landed on Ashmore, asylum seekers could claim to have entered Australian territory and request to be processed as refugees. The use of Ashmore for this purpose created great notoriety during late 2001, when refugee arrivals became a major political issue in Australia. As Australia was not the country of first asylum for these "boat people", the Australian Government did not consider that it had a responsibility to accept them.
A number of things were done to discourage the practice such as attempting to have the people smugglers arrested in Indonesia; the so-called Pacific Solution of processing them in third countries; the boarding and forced turnaround of the boats by Australian military forces, and finally excising Ashmore and many other small islands from the Australian migration zone. Two boatloads of asylum seekers were each detained for several days in the lagoon at Ashmore after failed attempts by the Royal Australian Navy to turn them back to Indonesia in October 2001.
Read more about this topic: Ashmore And Cartier Islands
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