Mining magnate Clive Palmer says the Federal Government should allow asylum seekers to fly to Australia to have their claims processed.

A political stalemate has gripped federal politics since two asylum seeker boats capsized, killing almost 100 people.

On Thursday the Senate struck down a bill from independent MP Rob Oakeshott, which tried to restore the Government's ability to process asylum seekers offshore.

In response, Prime Minister Julia Gillard formed a three-member expert panel to reassess Australia's approach to border protection issues.

Mr Palmer does not support offshore processing, and on Saturday said the current system puts asylum seekers in a difficult position.

He says even though many asylum seekers can afford plane fares, they are not allowed to fly so they turn to the riskier alternative of trying to reach Australia by boat.

"People who are in Indonesia and want to come to Australia cannot buy an airline ticket because the Australian Government stops them," he told the ABC after the Liberal Party's national conference on Saturday.

"All that needs to happen is that the Government needs to stop telling airlines and other people not to give people safe transport.

"If they come down here and if they're refugees, that's one thing. If they haven't got a legitimate claim, they can go right back on the plane the next day."

Mr Palmer says the current policy impasse is costing lives.

"We're not living up to our international obligations. If you lived in Syria, if your children were being bombed and murdered, would you leave a country or would you stay there and be killed? What sort of Australians are we, what do really stand for?" he said.

"[Ms Gillard] is responsible for these people being killed and drowned because she won't allow them to buy an aeroplane ticket to come here for $800."

Sorry, this video has expired Houston to head expert border policy panel

His comments came after senior Liberals attacked the Government's asylum seeker policies at the Federal Council meeting in Melbourne.

Immigration spokesman Scott Morrison hit out at Ms Gillard's expert committee.

Former Defence Force chief Angus Houston is one of three members of the committee, which will try to navigate a way through the policy deadlock.

But Mr Morrison argued it is already clear the Howard government's border protection policies worked, and should be re-adopted.

"They need to be restored now because we have in this country a crisis on our borders which grows - not by the day or the week, but grows by the hour," he said.

Former foreign affairs minister Alexander Downer says he is angry the Government dismantled the Pacific solution

"We saved hundreds and hundreds of lives by setting up that system," he said.

Opposition Leader Tony Abbott this morning vowed to restore those policies if he wins government at the next federal election.

"As things go from bad to worse, that's even more necessary now than it was then," he told the Liberal conference.

"People understand that the only way to stop the boats is to change the government, because they know that Labor's heart just isn't in it."

Ms Gillard later restated that she is willing to compromise to end the asylum seeker policy deadlock.

"Mr Abbott and the Coalition in Parliament during the last week voted against stopping the boats. They walked into Parliament and voted against any effective action to deter asylum seekers from risking their lives at sea," she said.

"I want to see effective action. I've been prepared to compromise. I am certainly prepared to work with anyone who wants to put the national interest first and get this done."