Enoch Powell's "Rivers of Blood" speech has cast a "40-year shadow" over the immigration debate in Britain, with governments failing to provide articulate leadership on the issue, the head of the country's race watchdog said yesterday.

Trevor Phillips, chairman of the Equality and Human Rights Commission, said the UK was falling behind competitors because of the lack of a coherent immigration strategy. While the issue had led in Britain to a "creeping resentment which can only be halted by a policy of manifest fairness", other countries were making the most of immigrant talent.

He added: "Immigration is part of our future. The real question will be whether we can seize the restless tide of talent currently sweeping across the globe. So far we are lagging behind our competitors." Mr Phillips stressed the need for a renewed debate.

Addressing 200 at the Birmingham hotel where Powell made his speech, Mr Phillips said: "Many think this is not the time for this debate. If we cannot talk about it now, then when? We cannot allow discussion of race and immigration forever to be seen as playing into the hands of extremists. The 40-year old shockwave of fear has gagged us."

Powell's speech, with its vision of society disintegrating in racial tension, still bars examination of the subject, said Mr Phillips. "For 40 years we have sustained a silence on the issue where people most needed articulate political leadership. Powell so discredited talk of planning that we have plunged along with an adhoc approach to immigration."

Sir Digby Jones, the Business minister, told the conference: "We are built on immigration. We are a bastard race. This is our country, not mine, and if you are here it's your country, feel you own it."

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