The study expressed concern that applicants for '457 temporary visas' are not subject to the 'Migration Occupations Demand List' (MODL), the equivalent of Work Permit UK's Skills Shortages List, meaning workers can still immigrate even if their skills are in balance or oversupply. It also noted that until recently, employers did not have to prove they were unable to find resident workers to fill jobs or projects before using foreign workers.

Australian recruitment agencies' ability to apply for visas on behalf of their clients was also listed as a primary concern. This practice could soon be mirrored in the UK if agencies are granted similar powers by the Government as a consequence of its recently announced review of the British FTV system.

Between August 1998 and August 2001, the unemployment rate for computer professionals increased threefold from 1.3 per cent to 4.5 per cent, and has averaged 4.7 per cent for the 12 months to February 2002. This represents around 8,000 unemployed computer professionals, more than the number of non-residents working in Australia as computer professionals in September 2001 on '457 temporary visas' (6,600). Between April 2000 and 2001, the unemployment rate for Australian computer science graduates looking for full-time work increased from 12 per cent to 19 per cent, and is now higher than the national average for all university graduates, from all fields of study (17 per cent). The 2002 figures are almost certainly worse, but are not yet available. Student demand for IT courses at Australian universities also fell by 11 per cent between 2001 and 2002 (from 14,600 to 13,000) while total demand for all courses grew by six per cent.

Some key statistics from Mr Kinnaird's report

The report also described how big businesses had consistently lobbied the Australian Government over the last few years to relax immigration laws further, arguing there were serious IT skills shortages in the country. However, 8,000 Australian IT professionals are currently looking for work, according to Mr Kinnaird's findings.

The Skills Hub, a lobbying group made up mainly of business representatives, said demand for IT workers is expected to grow by around eight per cent over 2002, and by around the same amount each year thereafter. Mr Kinnaird's paper quotes the Australian Bureau of Statistics as saying the IT job market grew just two per cent in the period 2001-02; the IT Skills Hub had said it would grow by 7.5 per cent over this period.

Mr Kinnaird explained the Skills Hub's growth predictions were unrealistic because companies are continuing to reduce their IT expenditure, adding: "It's a huge difference. If the Skills Hub is correct, there will be 13,000-15,000 new IT jobs every year for the next three to four years, but if the growth rate were a more modest three per cent, there would be just 5,000 additional jobs.

"Demand for IT courses from Australian residents will continue to drop if students know they will be competing with less expensive and more skilled workers from overseas."

'The case for an overhaul' also expressed concern over the fact that no information on the actual salaries paid to '457' holders has been made available, leaving foreign workers vulnerable to exploitation and therefore competitors to Austrailian graduates looking for jobs.

Mr Kinnaird made three core proposals to halt the damage he says the visa program is doing:

• the 457 visa program must be made subject to MODL so the visas are issued for skills in short supply only;
  
• even after the 457 program is made subject to MODL, employers must not be able to sponsor non-residents for 457 work visas without labour market testing;
  
• current policies must be changed to restrict employers' access to 457 visas because Australian residents, especially recent ICT graduates, are disadvantaged.

Mr Kinnaird told Shout99.com: "The Australian Immigration Department is apparently preparing a response to my report by the Minister (Philip Ruddock)."

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Richard Powell, © Shout99.com 2002