Immigration 'small benefit' to UK
Record levels of immigration have had "little or no impact" on the economic well-being of Britons, an influential House of Lords committee has said.
It says competition from immigrants has had a negative impact on the low paid and training for young UK workers, and has contributed to high house prices.
The peers want a limit on immigration levels - a view backed by the Tories.
Minister Liam Byrne says migration has added £6bn to the economy and a points system is preferable to a cap.
In their report, The Economic Impact of Immigration, the peers said the government "should have an explicit target range" for immigration and set rules to keep within that limit.
'Inconsistencies'
They raised the prospect of cutting the rights of people to follow relatives who have settled in the UK.
And they rejected claims by ministers that a high level of immigration was needed to prevent labour shortages as "fundamentally flawed".
The peers also warned that the government's new Australian-style points-based immigration system carried a "clear danger of inconsistencies and overlap".
The Lords Economic Affairs Committee, whose members include two ex-chancellors and other Cabinet members, took eight months to consider government immigration policies.
Inquiry chairman Lord Wakeham said: "Looking to the future, if you have got that increase in numbers and you haven't got any economic benefit from it, you have got to ask yourself, is that a wise thing to do?
"That is why we want the government to look at it."
House price rises
Committee chairman Lord Vallance of Tummel, a former CBI president, said the government's analysis of the economic impact from immigration was "very shaky".
They show unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent
But Immigration Minister Liam Byrne said the report confirmed the government's assessment that migration had added £6bn to the economy in 2006.
"That's important in anyone's book," he said.
It also "echoed" the government's belief that migration had to benefit the wider community and not just business, he said.
"The key question we have got to answer is how do we make sure we only get the skills we need in this country and no more? That's why we need the points system," he told the BBC.
He said newcomers would also be asked to contribute "a little bit extra" to public services before they became British citizens and unskilled workers from outside the EU would be banned.
'Clear danger'
The report claims that if net immigration of 190,000 people per year continued over the next 20 years, it would contribute to a 10% increase in house prices.
It adds: "The available evidence suggests that immigration has had a small negative impact on the lowest-paid workers in the UK and a small positive impact on the earnings of higher-paid workers."
And there was a "clear danger" immigration had hit training and apprenticeships offered to British workers.
Of the government's new points-based system, which breaks immigration into five new tiers based largely on earning power, the report says: "It is not clear whether the new system will in fact constitute the radical overhaul of the UK's immigration system suggested by the government."
The use of GDP as the measure of immigration's economic contribution was "irrelevant and misleading".
Instead, GDP per capita - or income per head of the population - would be a better measure, the report said.
"Our general conclusion is that the economic benefits of positive net immigration are small or insignificant," it said.
'Lost track'
Sir Andrew Green, of pressure group Migrationwatch, said the report had "torn to shreds the government's economic case for the massive levels of immigration which they have actively encouraged".
And shadow home secretary David Davis said the peers had shown "unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent".
"We are delighted they say there should be an explicit target range for immigration through controls on non-EU applicants," he said.
"This is a policy that we have been arguing for, for years and which the government has consistently rejected."
Chris Huhne, the Lib Dem home affairs spokesman, said the report made clear that "the government has completely lost track of the number of people who live in this country".
"No wonder there is a total inability to manage immigration or create policies that deal with its effects."
'Motivated workers'
Ex-Tory chancellor Nigel Lawson said: "Population increases make countries bigger, but they don't make countries more prosperous.
"The increased size of the economy is neither here nor there if it doesn't bring increased prosperity. And the reason it doesn't is because there are more mouths to feed, more people there."
But Dr Danny Sriskandarajah, head of migration at the Institute for Public Policy Research, said that to say there were no economic benefits was "simplistic and misleading".
"Recent immigration has brought immense benefits to the UK in terms of economic growth, increased competitiveness and the delivery of public services," he said.
Supermarket chain Sainsburys was among those to praise foreign workers in evidence to the committee. It said it had found foreign-born workers to be highly motivated with a strong work ethic which rubbed off on the British-born staff.
http://news.bbc.co.uk/2/hi/uk_news/politics/7322825.stm
Lords' report exposes Labour's lies on the 'benefits' of mass immigration
Last updated at 15:19pm on 1st April 2008
Gordon Brown today rejected heavyweight calls for a cap on immigration, saying workers from abroad were vital to the economy.
He dismissed a major report that attacked Government claims that migrants boost the economy, saying they were as important as foreign investment in the City.
“Most people in London know we benefit substantially, not just from inward investment, but from the number of workers who come in to join them,” Mr Brown said.
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Immigration
He spoke out after a study by senior peers, including two exchancellors, concluded that Government claims of a £6 billion boost to national earnings from immigration were misleading.
The devastating cross-party report went on to:
•Dismiss Ministers' "preposterous" assertion that migrants boost the economy by £6billion a year;
•Reject Government claims that foreigners will help to defuse the pensions timebomb;
•Demolish the "fundamentally flawed" Downing Street argument that migrants fill vacancies in the economy;
•And warn that migrants will force up house prices by 10 per cent in the next two decades.
Immigration minister Liam Byrne has also waded into the row this morning by claiming the inquiry put forward many of the points he had made when he was first appointed in 2006.
"The report actually confirms that about £6billion was added to the economy in 2006, that is a big number," he told GMTV.
"What it is also saying, though, I think, is that we should be taking into account the wider impact of immigration when we set immigration policy - now I think that is absolutely right."
His remarks came as the report, by the Lords economic affairs committee, which includes former Chancellors Nigel Lawson and Norman Lamont, economists and captains of industry, said immigration had had "little or no positive impact" on the living standards of the existing population.
In fact, the big winners were the migrants themselves who earn higher wages than in their homeland and can also send money home.
Some British workers were even seeing their incomes fall, while up to 100,000 youngsters have been unable to find work.
And, by pushing up house prices, migrants will keep young families off the housing ladder, the committee found.
With migration swelling the population by 190,000 every year, Labour has been keen to stress the economic benefits, not least over pensions.
But the peers said the argument did not "hold up to scrutiny" because the migrants will grow old and claim pensions of their own.
The committee has among its ranks Labour and Liberal Democrat members with impeccable economic and business credentials. Many of them were the most trenchant in their remarks.
Downing Street's claim that migrants fill job vacancies in the economy was ruthlessly exposed.
The peers said that despite the influx of more than 700,000 workers from eastern Europe since May 2004, the number of vacancies has remained at between 600,000 and 700,000.
Allowing more and more migrants into the country created the need for ever more jobs because the new arrivals consume as well as provide services, the study found.
It called on the Government to set an "explicit target range" for immigration and set the rules to keep within that limit - effectively a cap.
Such a move has been stubbornly resisted by Ministers, who say it could damage the economy.
But committee member Lord Layard, a Labour peer and globally-respected economist, said the population would increase by around 190,000 a year for the next 50 years without a limit.
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He warned: "We will have permanent pressure of people to move in our direction. Britain has an extra resource, which is the English language, for attracting people here.
"There is no doubt whatever that the pressure will remain for half a century or more.
"We are suggesting that the Government should set a target range for net immigration and then the rules should depend on the target range, rather than the numbers following from the rules as at present."
The language used by the peers to dismiss evidence given by the Home Office was devastating.
They described the department's economic case - principally that migrants boosted overall Gross Domestic Product by £6billion in 2006 as "shaky" and a "bad argument".
Lord Wakeham, the Conservative former Cabinet Minister, was chairman of the inquiry.
He said: "The Government's use of impact on overall GDP as the key measure is preposterous and irrelevant because it does not reflect the economic well-being of the existing population."
The committee said: "There has been little or no positive impact on the living standards of the existing population."
Asked if the economic policies pursued by Labour over the last decade had been a mistake, Lord Wakeham replied: "We have made it abundantly clear we do not believe there has been any great economic benefit from the policy it has pursued."
Myth exposed: Despite the influx of 700,000 workers from eastern Europe since May 2004, the number of job vacancies has remained at between 600,000 and 700,000
The report said the yardstick of economic success should be income per head of population, or GDP per capita, and here there was little or no proof of significant benefit.
"In the short term, immigration creates winners and losers in economic terms," said the report. "The biggest winners include immigrants and their employers in the UK.
"The losers are likely to include those in low-paid jobs and directly competing with new immigrant workers."
The destruction of the case for mass immigration leaves the Government in what critics say is an impossible position.
Ministers have accepted migrants are placing pressure on schools and hospitals, but have balanced this against the so-called "huge" economic benefits.
Now they will be forced to accept the social harm from migration, with little or nothing to fall back upon.
David Coleman, an Oxford University academic, says the wider costs of immigration are almost £8.8billion a year.
Professor Coleman said that the costs to the public sector are £1.5billion to run the asylum system, £280million to teach English to migrants and at least £330million to treat illnesses such as HIV.
Shadow Home Secretary David Davis said the report showed "unequivocally that the benefits of the current immigration policy to ordinary UK citizens are largely non-existent.
"There are a series of long-term risks to the economy, not least the disincentive to train, and it presents absolutely no answer to the pension crisis".
The inquiry, which took nine months and runs to more than 500 pages of evidence, said the low-paid, some ethnic minorities and some young people looking for a foot on the job ladder may have suffered because of competition from immigrants.
It also warned that the Home Office's much-trumpeted new points-based immigration system carried a "clear danger of inconsistencies and overlap".
But Chris Hannant, head of policy at the British Chambers of Commerce, criticised the study's findings: “The report ignores the contribution made by migrant labour in plugging skills gaps that blight our economy.”
Immigration Minister Liam Byrne said: "This report is a welcome contribution to our huge immigration shake-up, and we are already acting on practically every single recommendation.
"It proves we were right to set up the independent Migration Advisory Committee to tell us which workers our new Australian- style points system should keep out or let in.
"We're glad to see the committee welcome the system as well as our ban on low-skilled migration from outside Europe."
http://www.dailymail.co.uk/pages/liv...e_id=1770&ct=5
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