The Australian government is negotiating with a construction company to take over welfare services from the Salvation Army for asylum seekers on Nauru and Manus Island.
The Salvation Army's 65 million US dollar contract with the government for services in Australia's camps on the islands ended at the end of January.
Last week Transfield Services announced to the Australian Securities Exchange it was to take over responsibility for support and welfare services.
A spokesman for Transfield Services, David Jamieson, says the company would retain 40 percent of the 300 staff working under the previous contract.
He says Transfield provides entertainment and recreation programmes at defence bases in Australia.
He says more specialised counselling is still to be handled by medical personnel.
Transfield is an Australian-based global corporation that provides operations, maintenance and construction services.
A spokesman for the Refugee Action Coalition, Ian Rintoul, says Transfield's top priority would be its shareholders rather than the welfare of asylum seekers.
