Senior Opposition figures are moving to open a second front on the Government's immigration policies by highlighting the dangers of boosting migrant numbers as the economy falters and unemployment rises.
Liberal leader Brendan Nelson marched into the immigration debate this week, attacking the pilot guest worker scheme announced by the Prime Minister at the South Pacific island of Niue, saying that Australian workers should come first.
Coalition figures acknowledge the risk of being accused of playing the race card, but say Labor's plans to boost immigration levels at a time of rising unemployment will undermine public confidence in the immigration system. ''Rudd has got it completely wrong,'' one senior Coalition figure said.
''Howard used to bring in increasing numbers of migrants based on jobs growth and lower unemployment, and that kept the public happy. Rudd is bringing in a massive surge ... at the same time as jobs are disappearing, a recipe for disaster.'' The Government announced a 20per cent increase in migration numbers in the budget, from 159,000 in 2007-08 to an estimated 190,300 in 2008-09, in order to deal with chronic labour shortages and wages inflation pressure.
The budget also forecast an increase in the unemployment rate from 4.3 per cent to 4.75 per cent a rise of more than 100,000 people, the Opposition claims.
The Coalition offered support for maintaining the ratio of skilled migrants in the immigration intake when the Government announced its surge in this year's budget, and says it is monitoring the situation.
An attack on the Labor Government's planned immigration increase could open the Coalition to criticism that it is reverting to Hansonism and ''dog-whistle'' politics.
But senior party figures believe the Howard government's high levels of immigration will insulate the party from that charge.
Yesterday, Immigration Minister Chris Evans issued a new report from Access Economics estimating the Government's budget would benefit from the surge of arrivals by $536 million in the first year and $965 million in the second year.
''The positive impact is particularly pronounced for skilled migrants, which reflects their high rate of labour market participation and higher incomes, which in turn leads to a high level of direct tax receipts,'' Senator Evans said.
''The family reunion stream is very important to people coming to the country,'' he said.
''It is actually a strong benefit in terms of attracting good people to this country.''
Senator Evans agreed that humanitarian entrants were an initial cost to the economy, but he said ''they make a contribution over the longer terms and it is part of our responsibilities as a nation to assist those in need''.
Labor's plan to bring in 2500 workers from Papua New Guinea and other South Pacific islands over the next three years as guest workers has been welcomed by some rural communities but has met some resistance from the union movement and the Coalition.
''Why is it beyond the wit in this country, when we've got half a million people still unemployed, that we have to bring in people from Pacific island nations to do this work?'' Mr Nelson asked yesterday.
While some Coalition members support the guest worker plan, senior sources estimate this to be a clear minority.
Coalition figures point to Britain as an example of government mismanagement of an immigration program leading to a loss of public confidence in the system and an upsurge in racial problems.
The Access Economics study also found two categories refugees and family reunions impose a cost on the government, but Senator Evans referred to the broader social benefits of the categories.