A giant vessel off the coast of Dorset has agreed to provide accommodation for asylum seekers.
The barge, called the Bibby Stockholm, will be berthed in Portland Port for at least 18 months and will accommodate about 500 single adult males while their claims are processed.
The Home Office said the accommodation will be "basic" with healthcare provision, catering facilities and 24/7 security.
It did not say how much the lease agreement cost but insisted it is "significantly cheaper than hotels".
Immigration Minister Robert Jenrick said: "The Home Secretary and I have been clear that the use of expensive hotels to house those making unnecessary and dangerous journeys must stop. We will not elevate the interests of illegal migrants over the British people we are elected to serve.
"We have to use alternative accommodation options, as our European neighbours are doing – including the use of barges and ferries to save the British taxpayer money and to prevent the UK becoming a magnet for asylum shoppers in Europe.
"All accommodation will meet our legal obligations and we will work closely with the local community to address their concerns, including through financial support."
Portland Port has confirmed that it will be working closely with the government and local partners to maximise economic benefits from the vessel and minimise the impact on public services in the area. There will also be investment in buildings and infrastructure to support the facility, ensure the essential needs of its occupants are met and for it to become as self-sufficient as possible.
Bill Reeves, chief executive of Portland Port, said: “We welcome this investment in the port and local economy. We will be working closely with the Home Office to maximise the benefits and business opportunities while minimising any impact on public services.
“We understand local concerns and, as the port operator and a local business, have a vested interest of our own in the safe and secure use of the vessel. We are insisting that no economic migrants, criminals or under 18s are included in the population on board under a robust screening process. We are keen to ensure that only those people considered suitable and most deserving after passing strict checks are able to reside at Portland.
“There will be close co-operation with local agencies, including the health, welfare and emergency services during the preparations for the vessel’s arrival and its operation. We also hope to work closely with local community and voluntary groups.”
Mr Reeves added: “Although they won’t be able to work, we hope that some of the asylum seekers will be able to volunteer and make a contribution to the local area too. We encourage everyone in the community to approach this with an open mind and help us show other areas just how successful this type of initiative can be, both for the asylum seekers and the local community.
“We will endeavour to keep everyone updated throughout this process.”
Portland Port is based in South Dorset and has operated on a commercial basis since 1996.
It has a number of commercial tenants and provides maritime and marine related services.
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