Scott Morrison slaps down immigration reduction calls

IT HAS taken just hours for a senior Liberal to sharply reject calls from Tony Abbott to slash immigration numbers — saying his plan would be economically devastating.

TONY Abbott’s demands for big changes to immigration rates didn’t last the morning before being sharply rejected by a senior fellow Liberal as a $1 billion-a-year folly.

“All you would end up doing, in some ways, is cutting off your nose to spite your face,” Treasurer Scott Morrison said of the Abbott plan.

Last night, the former Prime Minister used a speech to call for immigration numbers to be cut by 80,000 a year to 110,000 a year.

However, Mr Morrison said this would batter the Budget.

Mr Abbott says the current level of immigration is pushing up housing prices and keeping down wage growth. Source: AAP Image/Brendan Esposito.

“If you cut the level of permanent immigration by 80,000 it would cost the Budget, it would hit the bottom line — the deficit — by $4 billion to $5 billion over the next four years,” he said.

Mr Morrison said this was because “basically the economy (would not be) growing at the same level and people who come as skilled migrants pay taxes, make a net contribution to the economy”.

He added that currently two-thirds of permanent migrants have skills needed by the economy. A cut in overall numbers would reduce the skilled total and emphasise family migration “which ultimately gets more dependent on welfare”.

The immigration rate has been attacked by new Liberal senator Jim Molan and Pauline Hanson of One Nation, and Mr Morrison addressed the issue as a rebuff to them.

But Mr Morrison, who had been Immigration Minister under Mr Abbott, appeared to scoff in particular at Mr Abbott’s intervention, saying he didn’t know what he was up to.

Mr Abbott had argued the current intake was pushing up housing prices and keeping down wage growth.

Mr Morrison replied today: “The permanent immigration intake that we have today is exactly the same as it was when he was prime minister.

Treasurer Scott Morrison says Mr Abbott's call to drastically cut Australia's migration intake would cost the federal budget up to $5 billion. Source: AAP Image/Alex Murray.

“I don’t recall at any time there was any discussion that should be lowered at that time and I do recall housing affordability being a significant issue at that time.”

Mr Morrison said the cap on immigration had been the same since 2011-12, and in fact there had been a 7000 shortfall last year.

“Where the increase in population growth has come from is through more temporary migration,” he said.

“So we’ve had a rebound in the number of international students coming to Australia, we’ve had an increase in the number of people coming on holidays and other things to Australia.

“This is what has been driving the population numbers up, not the level of permanent immigration.”

He said the Government was managing the intake with such measures as extending the waiting time for welfare payments:

“People should come to make a contribution, not take one,” he said.