'Oz economy to be hit if migrant intake isn't up'

A leading immigration expert has warned that Australia's economy would take a hit if it does not increase its temporary skilled migrant intake, which also includes professionals from countries like India.

According to The Age, the economic migration policy expert Alan Chanesman, also heading immigration strategy firm Lipman James informed the World Computer Congress in Brisbane that IT sector in particular was especially valuable, as it fuelled the economy with billions of dollars contributing to 66 per cent of gross domestic product.

Chanesman warned that current migration targets were inadequate and 457 applications had dropped by 20 per cent as a side-effect of the global financial crisis.

This year during their poll campaign, both Prime Minister Julia Gillard and Opposition Leader Tony Abbott revealed their plans to slash migrant intake.

Chanesman said to do so would be at the peril of the 'shrinking tax base' caused by an ageing population and the looming critical skills shortage the country will face after 2015.

"In the imminent future, more Australians will retire than will join

the workforce, which will have significant implications for economic growth and the government purse as older Australians move to retirement and labour participation rates drop markedly," Chanesman told the congress.

"Immigration is an essential ingredient in the population growth and one lever the commonwealth can use to moderate or accelerate overall numbers. The government must also be committed to attracting business through policies that accelerate and stimulate business development," he said.

"The government needs to be mindful not to turn the 457 visa-intake tap too tightly at the top as nothing will come out the bottom," he said.

"Permanent resident transition from permanent migration via the employer sponsorship directly impacts the net bottom line on our nation's net GDP.

"It's easy to maintain an argument that the Australian migration programme has been poorly managed by successive governments for the past 25 years -- often to the disadvantage of business in Australia.

"The current temporary skilled migration program is at best, mediocre."