- Government claims that high levels of immigration bring
economic benefits to the country are challenged in a new study published
today.
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- A report from the Migrationwatch think-tank says Tony
Blair and other ministers are routinely citing statistics that are disingenuous
at best and often wrong. These include the suggestion that immigration
contributes 0.5 per cent to the nation's overall GDP and that immigrants
contribute £2.5 billion more to the economy than they cost.
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- Such figures have often been quoted by Mr Blair and Cabinet
colleagues in support of record immigration levels.
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- But the Migrationwatch report says they are misleading
because while immigrants do add to the size of the economy they also add
to the population.
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- Sir Andrew Green, chairman of the think-tank, said: "What
the Government conveniently fails to mention is that they therefore generate
considerable costs in terms of infrastructure - schools, hospitals, housing,
transport etc."
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- When these costs are added back, says the report, the
true economic "benefit" to the host population is likely to be
at best the addition of 0.1 per cent of GDP, or about 14p a week per head
each year. The likely true benefit is probably no better than neutral -
as all major studies overseas have also concluded.
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- Sir Andrew added: 'It is extraordinary that this Government's
principal justification for the current immigration levels is built on
such shaky foundations. They seem to believe that, if their supporters
repeat false claims often enough then, despite the clear evidence to the
contrary, people will believe them and be reassured."
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- The report says that while the current levels of immigration
are attractive to employers because they provide an unlimited source of
cheap labour, they are extremely expensive for the taxpayer and harmful
for the less skilled indigenous workforce whose wages are held down and
who are more likely to end up unemployed.
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- Furthermore, to the extent that immigration holds down
wages, it makes it more difficult to attract into the labour force the
one million on incapacity benefit who would like to work.
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- A claim made by Ministers that migrants contribute to
pensions is dismissed as requiring "virtually impossible" rates
of immigration.
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- The report says that while limited skilled migration
in both directions is a natural and beneficial feature of open economies,
the issue is one of scale. It claims that immigration at current levels
- around 150,000 net arrivals a year - brings with it "considerable
costs in terms of additional strains on housing, public services and social
cohesion." It also accuses Ministers of relying on "dodgy"
statistics. A Home Office calculation that migrants in the UK contributed
in taxes £2.5 billion more than they consumed in benefits and public
services was made in a year in which the government accounts were in surplus
so everyone paid in more than they took out.
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- Correcting for this reduces their "contribution"
by £1.3 billion.
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- © Copyright of Telegraph Group Limited 2005.
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- http://www.telegraph.co.uk/.html
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