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Gordon Brown has rejected calls by a senior parliamentary committee for a cap on immigration, claiming that the move would jeopardise the British economy.
Speaking at his monthly press conference, the Prime Minister said that the Government's proposed points system would ensure that the immigrants needed by specific, key sectors were allowed into the UK, which a cap would prevent.
The Prime Minister added that setting an "explicit target range" for migrants, as the House of Lords committee had today demanded, would also be ineffective because it could not legally apply to the European Union, from where much of the recent influx has come after the accession of eastern European member states.
Mr Brown spoke amid a political row over the report by an all-party Lords' economic affairs committee, which called for an "explicit target range" to be introduced on immigration. The peers' report also rejected the Government’s claim that immigration is needed to prevent labour shortages as "fundamentally flawed".
While promising to control the number of newcomers, the government has pointed out that controlled immigration added £6 billion to the economy in 2006. “Most people in the City of London know they have benefited very substantially,” the Prime Minister told his monthly Downing Street press conference.
“Not just from the inward investment that’s coming from international companies, but the number of key workers who are coming to join them and are making a huge contribution to the British economy."
Adding that a points system would ensure that Britain gets the influx it needs in specific skills areas, he said: "The points system is looking at the different occupations and skills that are needed in this country. We are achieving exactly the same thing as the House of Lords is suggesting, by this route."
The findings of the inquiry were also opposed by Keith Vaz, the chairman of the House of Commons' influential home affairs committee. Its responsibility is to scrutinise the Home Office's policies. "If you take away the immigrants from the NHS and you take away the GPs from our doctors surgeries, the health service would simply collapse," Mr Vaz said.
Business figures emphasised the economic benefit of migration with Chris Hannant, head of policy at the British Chambers of Commerce, saying: "Many businesses are reliant on migrant workers because increasingly large numbers of British people do not have either the right skills or aptitude for work."
The peers' report was, however, backed by immigration campaigners, while opposition politicians claimed it showed that the Government had failed to get a grip on the numbers coming into the UK.
Chris Huhne, the Liberal Democrat home affairs spokesman, said: "This report makes it clear that the Government has completely lost track of the number of people who live in this country."
His comments were echoed by David Davis, the Shadow Home Secretary, who said the committee of "distinguished peers has demolished the Government’s case" for immigration.
Sir Andrew Green, chairman of Migrationwatch, which campaigns against mass immigration, said the report was "a watershed", adding: "A heavyweight committee of Parliament has torn to shreds the Government’s economic case for the massive levels of immigration which they have actively encouraged."
The study was conducted by two former chancellors and several other former Cabinet ministers, and found that certain groups in Britain - 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 said ministers should set an "explicit target range" for immigration and set the rules to keep within that limit. It also raised the prospect of cutting the number of partners and other family members allowed to settle in Britain because a relative is already here.
The peers also rejected the Government’s claim that immigration is needed to prevent labour shortages as "fundamentally flawed". They gave warning that the much-trumpeted new points-based immigration system carried a "clear danger of inconsistencies and overlap".

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called "doublethink", he knows for a fact that this points system only affects NON-EU countries. So it doesn't affect the 27 counties in europe.
LIAR
Andrew T, North East, England,
I'm sure immigration helps our economy but why are we not training our own people to do those jobs, instead of relying on immigrants. If we made the benefits system less attractive, many more of our citezens would seek to fill those vacancies.
It is also a fact that immigrant families have significantly more children than the indiginous population, and yet we continue to give vast amounts of money in child benefits. Therefore, I believe the child benefit system needs overhauling. Child benefit should be paid for the first two children 'full stop'.
Mike C, London, UK
I just cant wait for the next vote, will be great to get them out, they dont understand that we ALL have had enough with imigration, as ive seen on the bbc site, many partys have said enough is enough and its time to close the flood gates and redo the system as it has been proven that their is no benefit to the economy and its just making things worse. After all we are a small country with very little land to house the people here already as it is and i quote from there:
"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."
Its all true, labour and Gordon brown our "not elected PM" are running blindly, as they have lost track of the true number of imigrants, or should i say people living in britian today, so enough is enough Labour, you have had your time to shine, and you failed, time to let someone do a better job and clear up your mess !
James Arrows, Southampton, England
So if immigration is bad, then what about the people who leave the country - is emmigration good?
How about laws to encourage people to leave the UK, as well as laws restricting people coming?
Jom, Woking,
The man has lost the plot and has gone deaf all at the same time. If he was in charge of a ship he would be relieved of command.
I wish we were on a ship right now.
stuart, london, UK
The bottom line is that there needs to be a cap on immigration to the UK. That cap cannot (and should not) be applied to immigration from within the EU. It must therefore be applied to non-EU citizens.
Given that the UK is a member of the EU, it's ludicrous to suggest that EU and non-EU citizens should be treated similarly as regards immigration. We're all European now!
As for Gordon Brown - well it must fast be becoming clear to even the dimmest people that he never does what's in the best interests of England and in particular the South East.
Anne Smith, London, UK
What is the psychiatrists diagnosis of a patient who insists it's everyone else that is wrong?
Jane, Saffron Walden,
"While promising to control the number of newcomers," Where exactly is this control? How many unaccounted for peoples are actually in the UK living off the system and taking British jobs away? What was the last count, a million (that we now know of).
Douglas Cochrane, Halifax,
Gordon Brown and his cronies seem to live in ivory tower with no sense of the duty to the people that elected the labour party and by that I mean all voters. The sooner they are gone the better.
Mike Wills, London, London
The simple reason Brown wants more immigrants is because he needs as much tax money as possible to pay for his incredible profligacy. How else will he be able to fund not only the huge public sector but its massive gilt-edged pension obligations as well? The choice is either that public sector workers fund their pensions themselves like the rest of us in the useful and income generating part of the economy have to or he keeps on paying for them out of taxation. He's not likely to do the former so he needs more victims for his public sector chums to feed on.
John , Glasgow, UK
It's simple: since the state education system is not producing enough skilled workers, and the benefits system pays well when you have enough kids, Gordon has to import people to do the jobs, to pay the tax to support the growing numbers on benefits. Its a feedback loop, Gordon can't stop or the illusion will break down.
roger, london,
As some one who works in the nhs, the number of patients we treat who are immigrants, which includes specific clinics to screen them and offer translation is a huge strain.
Im not saying its right or wrong, but no one can deny its there , and is dispropotional to uk citizens, i.e immigrants make far more use of the nhs propotionaly.
Tom Henderson, cardiff,
The points system is open to abuse. Canada has a smilar system and there are numerous cases of individuals "tailoring" their qualifications and experience to correspond to the requirements.
Hamad Lone, London, England
I just wonder at times whether our wonderful government can actually add up at all and whether they should take a lesson out of their own book to achieve future greatness - education! education ! education ! Indeed, basic arithmetic is not hard to grasp so it should be simple for our politicians to undertake, but unfortunately when it comes to immigration even cabinet ministers cannot add up the cost of a policy of unlimited access and whether the country has a net benefits or not. In this respect also it appears that cabinet ministers and even prime ministers do not understand what common sense dictates, but where in comparison to this the vast number of the British people have been concerned about the ever-increasing immigration problem for nearly 10-years now. In this respect our politicians never did and still do not comprehend the problems caused by the increased demand on our health services, social services, housing, social benefits, etc.
Dr D Hill World Innovation Foundation
david hill, huddersfield, west yorkshire
This government does not listen to anyone, it never has and never will. Its time for them to go.
David, Kent,
The 'UK Immigration Policy' must be fair and square for immigrants from the EU and Non-EU countries. Anybody who wants to come and live in the UK for more than 3 months must have a job offer, employment contract, obtain a visa to come to UK. They should also be subjected to provide accommodation proof, English language proficiency certificate, proof of funds to live in the UK without having to recourse to the UK public funds, biometric finger printing, digital photographing, detailed medical checkups including blood test and chest X-ray, criminal check clearance or passport verification check to come into the UK.
I bet all my money. If the above has been done, we will not have illegals, benefit claimers, rapists, robbers, drug dealers, gangsters, gun crime, people smugglers and so on in our British society.
Uma Shankar, UK,
All good Management and controlling of Non-EU immigrants is easily out done by mass EU immigration. If EU immigrant movement can't be managed because of all the CRAP EU policies, then accept the fact that Non-EU immigrants are not 'Villans' of UK's immigration shamble. Why nobody wants to accept the fact?
I am not in favour of biased 'Immigration Policy', which is not any good other than fooling the British to get VOTES. This trick has been done in the past. There must be a fair policy for both EU and Non-EU immigrants, which will result good for all in the long run.
Uma Shankar, UK,
That is exactly why Mr Brown you will be out of a job at the next election. You do not listen.
Roger, Surrey,