One Nation’s plan to slash Australia’s temporary migration population by 750,000 has come under fierce attack from Labor, the Coalition and business leaders, who warn the policy could damage key industries and push the economy into recession.

Leader Pauline Hanson unveiled the plan on Monday, promising to “reset Australia’s immigration system” and reduce temporary visa holders and unlawful citizens over three years.

Senator Hanson said the changes were needed as Australians struggles with housing, healthcare and the rising cost of living.

“I know Australians are doing it tough,” Ms Hanson said.

“Families are competing with hundreds of people for rental accommodation.

“Patients are stuck in ambulances because there are not enough hospital beds.

“Young Australians are being locked out of home ownership while wages and infrastructure fail to keep up.”

But the policy was quickly attacked by Labor, with Agricultural Minister Murray Watt warning it would have a major impact on regional Australia.

“What is very clear from this policy is that it would kill the Australian economy and kill regional economies in particular,” he told the ABC on Monday morning.

“These are the industries and communities that One Nation claims to represent and support.

“But their own policies would actually deliver a hammer blow to regional economies right across Australia.

“I mean, I don’t know when the last time Barnaby Joyce or Pauline Hanson walked into a doctor’s clinic, a hospital, an aged-care facility, to a construction site, to a country pub, to see the number of migrants who are working in these populations.”

Health Minister Mark Butler also warned the plan would hit industries already heavily reliant on migrant workers.

“This would absolutely smash industries, like construction, that rely very heavily on migrant workers but also devastate health and aged care and disability sectors that particularly rely on migrant workers — especially in rural communities where it’s very difficult to find Australian trained doctors,” Mr Butler told Nine’s Today.

“Pauline Hanson said a few weeks ago she didn’t care what the impact on business would be of her migration policies. But this, frankly, is another level.”

Deputy Leader of the Opposition Jane Hume also criticised the policy, saying that reducing migration without detailed economic modelling could have serious consequences.

“A headline number and a few slogans. Well, that will send the economy into shock and potentially into recession. That would be dire for all Australians,” she told News24.

“If One Nation wants to be taken seriously, they have to be able to explain how the NOM (Net Overseas Migration) is going to work, what the interaction is going to be with the various economic levers.

“Because, let’s face it, economists are already beginning to sound the alarm here.

“We know that Labor have failed to manage the migration program. They’ve missed their targets every single year, and Australians are now paying the price. That said, simply turning off the tap or doing this without any economic modelling, that would be a disaster.”

The Australian Chamber of Commerce and Industry (ACCI) backed efforts to “restore the integrity” of the migration system but rejected One Nation’s proposed cuts.

“The Australian Chamber of Commerce and Industry does not support wholesale cuts to Australia’s migration program to meet an arbitrary Net Overseas Migration number,” ACCI chief executive Andrew McKellar said.

“Major cuts that reduce skilled migration would damage our economy, hit the Budget and weaken our capacity to provide services for, and lift, living standards for Australians.”

Mr McKellar stressed that the cuts would put Australian business across multiple sectors at risk.

“Many Australian businesses would be put at risk by major cuts to the migration program. Pubs, cafes, hotels, and accommodation providers desperately need chefs. Aged care homes and hospitals are short of staff already,” he added.

“Farmers and resources sector businesses continue to face persistent workforce shortages. Housing projects are being held up, while others remain unviable because of lack of workforce and skills shortages.”