LAST month, 63 asylum seekers arrived on Teesside by ferry over a period of just 18 days. Some are now living in houses without heating or hot water and others are relying on the Salvation Army for food.

Their situation is not unusual.

Two years ago, the number of stowaways coming to the North-East by ferry was less than 50 a year, but now it is approaching 300 a month. The enormous increase is straining resources and there are fears that, unless something is done soon, the system for dealing with refugees will break down.

Daoud Zaaroura, chief executive of the North of England Refugee Service, says: "So far the region has coped with the dispersal system and the refugees that have arrived here from other parts of the country. But what we are seeing now is happening outside the dispersal programme.

"Stowaways are coming into the region. They are not the responsibility of the local authorities but, until they are dispersed, someone has to look after them and it is usually organisations like us. The Government is trying to be proactive but, from a practical point of view, I cannot see an immediate remedy."

Last month, Home Secretary David Blunkett admitted the existing arrangements were too slow and unfair to both asylum seekers and people living in the communities where they settle. He promised "fundamental and radical reforms", including scrapping the dispersal system and the controversial voucher scheme.

He wants refugees arriving in the UK to be issued with identity cards carrying fingerprints and photographs and there are plans to introduce American-style Green Card work permits. Short-term induction centres would house up to 3,000 asylum seekers, taking some of the pressure off local communities. Unlike the much-criticised secure Oakington Reception Centre in Cambridgeshire, these would be open.

The changes would allow the speedy removal of unsuccessful applicants and, by the same token, enable those who have been successful to be integrated into the community more speedily.

Mr Zaaroura welcomes the proposals as "a step in the right direction" but knows it could be some time before the overhaul takes place. Redcar MP Vera Baird plans to raise the issue with the Home Office and ask for interim measures to help alleviate the pressure.

Mr Zaaroura says: " We do need something to be done now. We need extra staff and we must do something to resolve the housing situation. At the moment, we are finding it very difficult to find suitable properties and people to inspect them. We don't want to end up putting people in the wrong place."

As well as additional resources, he is calling for local communities to be more involved in the process. "There can be conflict because people see refugees arriving and stretching the services provided to them," he explains. "You only have to look at the murder in Glasgow to see how serious it can be. If we can increase the resources for refugees and local communities and let them have a say in what happens, it might help."

The North-East Consortium for Asylum Support Services (Necass) has a five-year contract with the Government to provide accommodation and basic support to asylum seekers during their first year in Britain. It is one of a number of similar groups across the country and comprises local authorities, other statutory organisations and the voluntary sector, including the North of England Refugee Service.

Regional manager Nadeem Ahmad admits the system is under pressure due to the increasing numbers of refugees entering the region, but he refuses to concede it has reached crisis point. "I can understand the concerns of the voluntary organisations but to call it a crisis is overstating the case," he says. "In my position, I have an overview of what is happening in the region and although I am the first to admit that everything is not rosy, I think the North-East is dealing with the situation in a positive way.

"There are faults in the current system like the voucher scheme, which I cannot believe we are even contemplating in the 21st Century, but the Home Secretary's proposals should change that. Until then, the best thing we can do is work with the Government in trying to make the system work better."