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The last Conservative election manifesto pledged to bring the number below 229,000 a year, while David Cameron had promised to bring it down to the tens of thousands.
John Kay told the Tory minister that the government had "failed" to keep its promises to voters.
The prime minister cancelled his talks with Kyriakos Mitsotakis in a row over the Elgin Marbles.
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John Kay made the quip as he grilled new Tory chairman Richard Holden.