April 24, 2006 | posted by Michael Baxter in Uncategorized |

As the tabloid press scream about immigration and talk of refugees from the war torn corners of the earth sponging off the UK’s system of benefits, remember there is another side to the argument.
Immigration could, after all, provide a short-term fix to the looming pension crisis and give the UK the time it needs to solve the problem altogether, as it delays the date at which the number of retired people outnumber those in work.
Now, research from Ernst and Young’s Item Club has found that immigration is boosting the UK’s economy, and helping keep a lid on inflation and facilitating the low rate of interest.
The Item Club’s Peter Spencer said: “We are on the crest of a new immigration wave#133;The steady flow from most recent accession countries to the UK has proved remarkably positive for the economy.”
“As a direct result, the UK workforce has become younger, more flexible and economical, easing the pensions burden and keeping interest rates lower than many commentators would have predicted.”
The Item club calculates that around 300,00 migrant workers have taken jobs in the UK, and that contrary to commonly held perception, one in three or these Eastern Europeans are taking up positions in management
The economic think thank, which uses the same model for the economy as the Treasury, reckons that thanks to these migrant workers, the UK’s GDP will be 0.2% bigger this year, 0.4% bigger next, and contribute £300mn to the Treasury’s tax receipts.
Meanwhile, as Eastern Europeans set up roots in the UK, Peugeot has dismantled roots in the UK and firming up in Slovakia, the Czech Republic and France.
Some blame the EU, saying its EU subsidies are the reason for the Peugot switch.
Don’t you believe it, says the EU commission, with a spokesperson saying: “There are strict state aid rules. When a member state gives state aid it must notify the Commission and each case is analysed before agreement is - or is not - given.”
“Money from EU structural funds cannot be injected in the form of state aid and there are very strict controls showing how money is used for specific programmes and projects.”
“All this is monitored by the Commission and the member states.”