Technology and innovation are opening up new areas of opportunity between the UK and Australia.

It is a great pleasure to contribute to British Australasian Business 2002. The work of both the Australian British Chamber of Commerce and the Australian and New Zealand Chamber of Commerce UK contributes importantly to expanding trade and investment flows, and I wish both organisations continuing strength in the future.

Dynamism and potential

Australia cleans up: Hills Industries has had a base in the UK for 30 years

The commercial linkages between Australia and the United Kingdom remain of fundamental importance. They are linkages that have changed over time as technology, innovation and greater competitiveness open up new areas of commercial opportunity. Those opportunities are not narrowly confined to specific sectors but are wide-ranging and substantial. That is why the contours of the Australia/UK economic relationship continue to change and why its dynamism and potential continue to grow.

The horrific events of 11 September in New York and Washington changed the strategic landscape and impacted directly on the global economy. They created new challenges in economic relationships world-wide, and the Australia-UK relationship was no exception. Our two countries have met those strategic and economic challenges with a common sense of resolve and practicality. In doing so, what has been highlighted yet again is the relevance of our shared values, the depth of the linkages between us, and the capacity of businesses and exporters in both countries to respond creatively to new and unexpected circumstances.

On the commercial side of the relationship, which is the key focus for members of both Chambers, the trade and cross-investment linkages are fundamental. Despite the slowing of the global economy in the latter half of 2001, in relative terms the Australian and UK economies maintained good momentum. There was significant new investment in the UK in 2001 by major Australian companies in infrastructure and property development as well as the financial sector.

Australian ICT in the UK

Bright lights: 200 Australian ICT firms have already set up a UK office

The rapidly expanding base being established in the UK by Australian Information and Communication Technology (ICT) businesses is an exciting development. Almost 200 companies now have offices in the UK, with double that number of companies doing business with the UK from an Australian ICT base. We have seen particular success in the areas of e-government and health, as well as in a wide range of industrial, consumer and corporate applications.

There are now more than 300 members of the Australian Inner Circle networking group. This organisation is made up largely of young Australians working in London in the ICT sector and is further evidence of the strength of the Australian ICT base in the UK.

Austrade has been actively working over the past 12 months with Australian IT companies that have been successful in the UK. These companies are being encouraged to expand into the rest of Europe, with many now working across a number of countries.
Students and working holidays

In the services sector, more and more young people in the UK are taking up the option of working holiday visas in Australia. Others are opting for postgraduate education in Australia – a very effective blend of quality education and lifestyle. We are seeing increasing numbers of student visas being issued, and Australian academic institutions are now playing an active role recruiting students in the UK and establishing education exchanges.

Wine and food
The Australian wine story continues its legendary achievements, reflecting the innovation, the commitment to quality and the marketing expertise of the Australian wine industry as a whole, including both the large-scale producers and the smaller wineries.
Many other Australian food and beverage exporters are also rediscovering opportunities in the UK. Many Australian retailers and producers actively use the UK as the premier model for the development of supply chain management systems and the development of private label manufacturing.

Innovative freighting
The tyranny of distance has traditionally inhibited the export of fresh produce to the UK, with sea freight too slow and air freight too expensive for many producers. Trials in 2001 of modified atmosphere packaging to prolong shelf life, combined with the innovative use of air freight from Australia to Asia then transhipment to sea freight from Asia to the UK, is rapidly changing the economics and the time of doing business in fresh produce.

Britain is the second largest investor in Australia. Our business and economic infrastructure, our highly educated and flexible workforce, our strong research base, and our links in the Asia-Pacific region mean Australian industry is well placed to form partnerships with UK companies. They are partnerships which the Australian Government is keen to foster.

The Australian Government has reaffirmed its support through its recent Innovation Statement for the development of high technology and know-ledge-based industries – areas in which UK companies have been major investors in Australia. Invest Australia, together with the various states, are actively pursuing these potential investment leads.

The Australia-UK trade and commercial relationship is full of opportunity, diversity and dynamism. It will continue to face new and unexpected challenges but the resolve, adaptability and practicality which have always underpinned the relationship give it an enduring strength into the future. I wish all those individuals and businesses in Australia and the UK involved in this very important relationship a very successful and productive 2002.

HE Mr Michael L’Estrange,
Australia High Commissioner
to the United Kingdom.
Website: www.australia.org.uk