Letters | Sunday, 15 February 2009

PRINT THIS ARTICLE

Economic impact of migration

The unending influx of illegal immigrants is making the government’s obstinate silence quite unbecoming.
At the very least, Maltese citizens, voters and taxpayers expect the government to publish an economic impact assessment of what, starting as a phenomenon, has now reached alarming proportions. May I list two elements that could be taken into consideration?
As part of the global economy, Malta is being pulled down by the global recession which experts believe will be deep and quite long-lasting. ST and other firms will downsize their work force; others will be working a four- or three-day week. As consumers in our main tourist markets are hit by lower incomes, tourism will suffer with repercussions on employment in hotels and other sectors of the tourist industry. The building industry is also slowing down. There is no doubt that unemployment will rise throughout 2009, and perhaps next year too.
Up to now, the promoters of immigration, both legal and illegal, have advanced the argument that foreign workers do jobs that Maltese workers shun. To what extent is that true? To what extent will it remain true? Obviously one cannot expect an engineer to turn into a garbage collector; but as the recession bites Maltese employees will have to lower their expectations. There will be only one argument left in favour of illegal employees – their employers can avoid paying Social Security and can pay lower wages because those employed illegally do not pay income tax. Is that a situation the government wishes to encourage?
A second element is the impact on public finances. The cost of illegal immigrants to the public exchequer is conveniently split among several ministries – social policy, health, education, police, Armed Forces and so on. It is therefore difficult for even an expert to reach a reliable estimate of the cost of illegal immigration to the government and hence to taxpayers. I suspect the government’s opaque presentation of the figures is meant not to alarm further public opinion. On the other hand, whenever some funds are allocated by Brussels to alleviate a part of the problem, the Government’s public relations machine goes into full gear. However, that has been happening so systematically that it has now become transparent.
Obviously, the problem of illegal immigration is not merely economic. But the economic repercussions need to be studied, assessed and published so that Maltese public opinion can be better informed.

Malcolm Seychell
Birkirkara

Any comments?
If you wish your comments to be published in our Letters pages please click button below.
Please write a contact number and a postal address where you may be contacted.