Blears sparks race row over immigrants 'undercutting wages'

Hazel Blears, fighting to become deputy leader of the Labour Party, was last night at the centre of controversy after she appeared to suggest that immigrants were engaged in anti-social behaviour and street drinking.

Ms Blears also said people in her Salford constituency were concerned that immigrants were undercutting their wages and that they were less willing to pay tax. The Labour Party chairman told The Independent on Sunday she was "very worried" that the far right was capitalising on fears about immigration because mainstream politicians were failing to address people's concerns. About 40 per cent of the public thought immigration a significant issue compared with 10 per cent a decade ago, she said.

"There has been a dramatic change in communities. We have got people living in Salford now from every country under the sun. We used to be 93 per cent white working class. Our community's changing before our eyes. People can see it and when they see it they get worried - if it is not being managed properly."

British people did not object to immigrants, but they wanted "fairness" in the way that they behave. "If it is perceived not to be fair, then you do get tension," Ms Blears said. "I think everyone is working harder now probably than they have ever worked before and they feel that everyone who can work should. They don't like people to avoid paying taxes: if they have got to do it, everyone else should.

"We have got areas in Salford where private landlords are letting properties with 10 and 12 people in there. Now the community doesn't object to the people, they object to the exploitation and the fact that that leads to people being on the street drinking, anti-social behaviour. They don't object to the people being there, but they object if they are undercutting wages and not getting the national minimum wage and they are not abiding by health and safety, so you have got to enforce the law."

The controversy echoes the row surrounding Margaret Hodge, the industry minister, who suggested British indigenous families must be given preferential access to social housing. Ms Blears, who said she disagreed with Ms Hodge, called on people from different ethnic backgrounds to mix through sports clubs and in schools, and said there were "dangers" for society in segregated areas.

She said: "You can't tell people where to live. You can't say this street is reserved for eight black families and eight white families. But you can provide a range of housing that people want to live in. You can make it attractive, secure and safe. Sometimes people cleave together because they don't think it's safe. Now if you have a proper police service, people will feel comfortable living in other areas."

Simon Woolley, director of Operation Black Vote, accused Ms Blears of pandering to far-right rhetoric. "There is absolutely no evidence migrant workers are drinking on the street and most people would accept migrant workers are doing a good job for a fair price."

Norman Lamb, a Liberal Democrat MP, said: "To paint this sort of picture plays to dangerous and wholly wrong stereotypes."

Immigrants contribute around £2.5bn more in tax than they receive in benefits or state services, according to the Home Office.