Growing number of Australians could shape 2010 election

Canberra, April 08: Explosive population growth is shaping as a pivotal issue for Australian elections later this year, with most voters not sharing Prime Minister Kevin Rudd’s preference for a “Big Australia”, a survey showed on Thursday.

Major business groups, fearing labour shortages, urged the government to ignore a survey showing two-thirds of Australians did not want the population of 22 million to swell to an expected 36 million by 2050.

“In the wake of a recovering economy, and what we expect to be some global recovery during 2010-11, the likelihood is we will need to increase our skilled migration intake,” said Australian Chamber of Commerce and Industry chief executive Peter Anderson.

Rudd last year backed a bigger Australia after Treasury Department Secretary Ken Henry said current high rates of immigration and childbirth were creating profound economic policy challenges, with population growth of 61 percent seen by 2050.

In contrast, the world population was forecast to grow by only 38 percent over the same period, from 6.8 billion to 9.4 billion, making Australia the world’s fastest growing industrialised country, ahead of even India.

Policy think-tank the Lowy Institute released a survey on Thursday showing that while 72 percent of respondents supported a rise in Australia’s population, almost the same number (69 percent) wanted it clamped below a modest 30 million ceiling.

“Some of the concerns about overcrowding, about house prices, about the environmental strain that 36 million Australians would cause, are also starting to bite,” Lowy Institute executive director Michael Wesley told national radio.

Australia’s economy skirted the worst of the global downturn thanks to high commodity prices, a rush of foreign investment and soaring real estate costs that convinced the Reserve Bank of Australia to start raising interest rates last October, the first major global central bank to do so.

The RBA lifted its key cash rate by another 25 basis points this week to 4.25 percent, its fifth hike in seven months, and more increases are expected as the economy continues to gather strength and price pressures build along with it.

Strong jobs figures on Thursday showed 19,600 extra positions were added in March, holding the jobless rate at 5.3 percent, far below levels in other advanced countries.

The government will in days release a sweeping review of taxation designed to cope with economic and population shifts, and possibly including a controversial new tax on big miners like BHP Billiton and Rio Tinto.

Newly-appointed Population Minister Tony Burke said the government had no firm population target, with the 36 million figure being only a projection based on current policies.

–Agencies