A day after the Prime Minister, Mr John Howard, reignited the immigration debate, the Immigration Minister, Mr Philip Ruddock, yesterday flagged a likely increase in Australia's intake of skilled migrants in the new financial year.

Mr Ruddock's move comes after an apparent policy shift by Mr Howard, who declared in an interview at the weekend that he had an open mind on future immigration levels and called for a "comprehensive debate" on the appropriate level of immigration and population for Australia.

Senior Labor figures immediately clashed over the issue. Labor's immigration spokesman, Mr Con Sciacca, welcomed Mr Howard's call, saying Labor could support higher immigration levels.

But the New South Wales Premier, Mr Bob Carr, warned that Sydney was already "bursting at the seams" and did not want any more growth.

Mr Howard's call comes amid new evidence that immigration is already soaring. Unreported Bureau of Statistics figures show that net permanent and long-term movement into Australia has already risen by 14 per cent in the first five months of this financial year, on top of a 22 per cent increase in 1998-99.

While the official migrant intake has risen only marginally to 82,000 a year, arrivals from New Zealand and overseas visitors coming to work or study in Australia have pushed the actual level from 79,160 two years ago to almost 47,000 in the first five months of 1999-2000: a rise from 6600 a month to 9400.

Mr Ruddock told the Seven Network's Sunday Sunrise program he was carrying out "comprehensive consultations" on future immigration levels, and would put a submission to Cabinet next month. But while the submission would contain various options, he hinted that he would push to increase the skilled immigration target.

"The important point in relation to any discussion of increased migrant numbers needs to be in the context of whether we can choose people who will be beneficial to our economy," Mr Ruddock said.

"In other words, choose people with skills, language capacities and relatively young who are going to help build Australia, rather than those who will impose a net cost to the Budget, and not necessarily help with the economy.

"If you can get people with skills that are needed and required in Australia - that are not being filled in our labor market - then you are able to grow the program in a way which is beneficial for the nation. And that is going to determine whether or not we have a large program."

The Government has approved an intake of up to 82,000 migrants for this financial year: 35,000 skilled workers, 32,000 family reunions, 12,000 refugees and 3000 "special eligibility". Last year the program intake was just 58,400, but net immigration was double that at 117,335, with New Zealanders, category jumpers, and workers and students on long-term visas making the difference.