THE 162 asylum seekers on board a boat that refused to turn back to Indonesia despite reporting it was in distress arrived at Christmas Island yesterday after travelling the final 200km of their journey on navy ships.

Their arrival means Julia Gillard has had more boat arrivals in just over two years in office than any other prime minister.

Australian crews from HMAS Wollongong and HMAS Leeuwin boarded the vessel about 8pm on Wednesday and transferred the passengers to the navy ships. Those on the vessel began calling Australian authorities by satellite phone soon after leaving Indonesia, claiming they were in distress but refusing to turn back to Indonesia.

The government is now facing questions over whether asylum seekers are using Australian authorities as a ferry service.

The vessel continued south towards Christmas Island for about 10 hours with navy boats shadowing it before it was boarded. AMSA yesterday was yet to determine the exact nature of the "distress".

AFP Commissioner Tony Negus said it was common for asylum boats to call Australia soon after leaving indonesia.

Since Ms Gillard became Prime Minister, 13,613 boat people have arrived. Yesterday's arrival saw her overtake John Howard's record of 13,584 -- which was tallied over almost a 12-year period.

"Two years ago Julia Gillard pledged to smash the people smuggler business model by opening a regional processing centre on East Timor. Since then nothing has changed," Opposition immigration spokesman Scott Morrison said.

"The people smugglers' business model is continuing to thrive and there is still no offshore processing at East Timor, Nauru or anywhere else."

A spokesman for Immigration Minister Chris Bowen blamed the opposition and the Greens for failing to vote for legislation to allow the government's Malaysia people swap deal.

As the politics played out, the latest batch of asylum seekers -- some visibily ill, others happily waving to the media -- were transferred from the navy ships to Christmas Island via barge.

One man among the boatload of Iraqi, Afghan, Iranian and Palestinian passengers was carried off on a stretcher after a suspected heart attack. Among the passengers was a young Iranian couple, who spoke fluent English, who were at pains to tell authorities they were married.

One witness said the asylum seekers had benefitted from a "Customs ferry service" after refusing to go back to Indonesia.

More arrivals are expected today, as the Department of Immigration and Citizenship tries to ease pressure on detention facilities by transferring the would-be refugees to mainland detention centres.

Originally published as No distress as people 'rescued'