The Government's push to release boat people refugees into the community as part of its "mutual obligation" scheme would see them turn to crime or the black economy, the Federal Opposition claimed yesterday.

The decision to include boat people in the scheme - in which people have to work for the dole or train in order to continue to receive social security payments - was announced by the Treasurer as a Budget measure on Tuesday night.

It is estimated the scheme will cost $4.9million to implement over two years but will then recoup $2 million a year as the boat people are forced to head back to work.

Yesterday, the Opposition's immigration spokesman, Mr Con Sciacca, said it was crazy for the Government to make the refugees take part in "activity tests" and fill out forms on which jobs they were seeking as part of mutual obligation when many could not even speak English.

The Government's new three-year temporary protection visas designed specifically for boat people do not give normal rights afforded refugees, such as housing and English language lessons.

The Government has been under fire from the South Australian Government, which is picking up the bill for housing and other services for boat people dumped in Adelaide after being released from the Woomera detention centre.

"They're going to be driven underground, into the black economy, where some of them might have to turn to crime," Mr Sciacca said.

"How are they going to satisfy an activity test if they are not armed with the basic [command] of the English language?"

Andrew Clennell