Old duffers brigade have their say on migrants

Tuesday, April 01, 2008
by Geoff Riley

The publication of a new report on the economic effects of immigration by the House of Lords Economics Affairs Select Committee has prompted the usual and predictable mixture of commentators, rent-a-quotes and so-called experts to come out of the woodwork and use up copious amount of media time. There is no doubt that the committee contains some heavyweights including Lords Layard, Turner, Paul and Skidelsky. And there is a terrific amount of economic data and comment in the report for us to soak up.

But no single report is ever definitive and, as the report itself makes clear, the real problem at the moment is that we simply do not have sufficient accurate data on the scale of the migration flows and the characteristics of those who come to live and work in the UK. The report seems to be heavy on the static effects of large-scale net inward migration - but perhaps gives insufficient weight to the dynamic impact of migration in areas such as innovation within businesses and the longer term bsocial benefits from greater cultural diversity.

Anyway, here is the link to the report for those of you who want to read it for yourself.

And the always lively and interesting commentator Philippe Legrain offers this robust defence of the economic benefits of inward migration

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Comments

Heh, saw that just now and was planning on writing a rebuttal but you beat me to it. Your point about it concentrating on heavily on the static effects rather than the dynamic impact is a keen observation, I didn’t notice it before.

Immigration is, and ever will be, a tender topic for discussion. The House of Lords and the Conservative Party have made no attempt to dispel their negative stigma today in demanding for a cap on immigration. In the television interview with Sir Andrew Green (Migrant Watch), he actually underestimated the number of emigrants by 300% (he said 100k when the actual figure is 400k - perhaps he just “misspoke") and asked for a roughly equal number of immigrants as emigrants, so that the country can have a “stable” population, i.e. a net immigration of zero. Danny Sriskandarajah (Institute of Public Policy) also picked him up on the point that if you want to build more houses to prevent house price inflation, the best way of doing that is to allow immigrants to come in and build them for you - they’re the net contributors in terms of housing.

Even though the £6billion does not account for much after being made per capita, Liam Byrne does still insist that we have a triple of: rising employment, higher average wages and greater productivity, which he attributes to our liberal immigration policy. The strain on public services does exist, but immigrant workers pay tax too and contribute to the system just as much. Here’s a great interview with Philippe Legrain: http://freakonomics.blogs.nytimes.com/2007/10/17/the-case-for-open-immigration-a-qa-with-philippe-legrain/

Finally, on the points system: sure it’s better than a cap (which I believe to be morally repugnant) but I am still deeply sceptical about its effectiveness. How is a bureaucratic, centralised system supposed to respond efficiently to consumer demand? http://news.bbc.co.uk/1/hi/uk/7242095.stm This amusing report last month has graver implications. The state doesn’t have a clue about what people want, and by rigging the system towards EU migrants, the industries requiring Asian migrants are losing out as a consequence. If there was a points system put in place, Monsieur Sarkozy’s father wouldn’t have been allowed into La République, and we wouldn’t be seeing Obama making a bid for presidency either.

Posted by  on  04/01  at  06:52 AM

Bloody immigrants, comin’ o’er ‘ere, boostin’ our economy, fillin’ our skills gaps, lowerin’ our inflation…

Posted by  on  04/01  at  06:56 AM

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