While migration into Ireland has been broadly positive in recent years, it has the potential to damage economic growth and create marginalised communities of foreign nationals if it is not managed properly, a State think tank has warned.
A major report by the National Economic and Social Council (NESC) says migration into the country has been broadly positive and contributed significantly to our competitiveness, employment levels and economic growth.
However, the report warns that migration could prove damaging if the demand for migrant labour is confined to the low-wage and low-skilled sector of the economy. This form of migration could lower levels of economic growth and widen inequality in incomes.
It also cautions that migration levels and a lack of integration could undermine the rule of law and weaken the ability of state institutions to control and monitor who resides here.
However, migration was most likely to enhance economic and social progress if there were greater numbers of better educated and qualified migrants who supported an upgrading of the economy, skills and work.
Launching the report yesterday, Taoiseach Bertie Ahern acknowledged that it was difficult to forecast what the social and economic effects of migration would be. However, he said successful integration policies could play a key role in ensuring migration continued to be a positive experience for the country.
"There are significant changes arising which our indigenous population must come to terms with, while benefiting from the overall impact of immigration. It would be surprising if change on this scale did not give rise to concerns about identity and perhaps a sense of uncertainty about the future," Mr Ahern said.
He added that Irish people were entitled to expect newcomers who seek to make their homes and livelihoods here to respect long-established patterns of Irish life and culture. This included a respect for the rule of law; the institutions of the State; aspects of community life such as family solidarity; and cultural traditions such as Irish language, literature, music and the Irish people's religious and spiritual sense.
The report avoids recommending a policy direction on whether Ireland should offer unrestricted access to nationals of Bulgaria and Romania to the labour market. It says the scale of migration from these countries, if offered open access, is unlikely to match the scale of immigration from nationals of new EU member states in 2004 such as Poland.
Despite this, the report suggests that adopting transitional arrangements would "not be inconsistent" with Ireland's "principled and generous" stance to open its labour market to accession state nationals in 2004 given new uncertainties over the long-term effects of large-scale migration.
It concludes by saying that social partners should be consulted in advance of the Government's decision. Mr Ahern yesterday said he was committed to doing so.
In the area of the effect of migration on job displacement, the report says there has probably been some moderation of wage growth. However, there is not significant evidence of displacement of Irish workers so far, it says.