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I believe as soon as an individual's asylum application is failed they should be returned to the country they came from in the first place. Similarly, if an individual is granted asylum, they work, pay tax, benefit from our services but contribute to the society in which we live. It's all extremely simple when you think about it.
In the 21 day period, they should be held in detention centres where they can be monitored prior to deportation but be given the basic fundamentals to live; security, food, water etc. If they were released out onto the streets, are you seriously suggesting to me that they would not do a runner and present the country with 1000's more illegal migrants to those already residing in the UK because of years of government backlog and incompetance?
Australia have a very effective system that rewards those who contribute, work hard and integrate into the homogenous culture but deal correctly with those who seek to take advantage and do not accept that decision made on the basis of laws drawn up by democratically elected governments (like it or not). I don't agree with 'punishing them' and if you can pick up on something I have said that suggests such a thing, then go ahead. 'Punishment' is a somewhat subjective term, mind. If deporting them back to their country of origin after a failed application is 'punishment' then by all means, tar me with that brush. I prefer to call it the implementation of the rule of law as drawn up by the sovereign parliament of this land.