The significance of the UK to Australian investors is as much about the opportunities it provides in Europe as it is domestic returns, British High Commissioner Sir Alastair Goodlad told WA Business News’ recent Meet the Ambassadors lunch.
The significance of the UK to Australian investors is as much about the opportunities it provides in Europe as it is domestic returns, British High Commissioner Sir Alastair Goodlad told WA Business News’ recent Meet the Ambassadors lunch.
Since May 1 2004, Europe has consisted of the single integrated European Union market comprised of 25 EU member states and the three additional states of the European Economic Area.
From 2007 this marketplace will also include Romania and Bulgaria, and according to Sir Alastair, possibly Turkey in the future.
“A marketplace of 500 million people, larger than the US and Russia combined, is, of course, potentially lucrative,” Sir Alastair said.
“But the European marketplace is also highly complex. A mixture of mature and emerging markets, overlaid by enormous cultural and linguistic diversity.
“The first step toward tapping this potential is establishing a solid base and there is no better base in Europe for Australian firms than Britain.”
Sir Alastair said the UK offered a pro-business environment, low corporate tax rates, fast and easy access to Europe, a highly skilled English-speaking workforce, fast and low-cost delivery throughout Europe and world class centres for learning, research and development.
“There is also an established core of Australian firms in sectors such as financial services, biotechnology, information technology, nanotechnology, property services and chemicals,” he said.
“Our industrial centres are directly linked by road to air and seaports, while regardless of location in the UK you will never be more than 160 kilometres from a container port.”
Combine all this with the fact that London is the world’s leading financial and business centre, working hours are the most flexible in Europe, staffing costs are highly competitive, the UK has the lowest utilities costs in the EU – and it is no surprise that more than 70 per cent of Australian investment in Europe is directed into the UK.
Sir Alastair said that, in the face of growing competition for foreign direct investment from markets such as India and China, the challenge for both Australia and the UK was to maintain agile and open economies and work hard to keep companies competitive.
“It is no surprise that the WA Government has identified numerous opportunities for increased trade and investment with the UK, ranging from food and beverages to nanotechnology,” he said.
“The edible opportunities alone are staggering. Breakfast cereals, biscuits, gourmet products, fresh fruit and vegetables, seafood and organic food and beverages.
“And that’s not to mention agricultural biotechnology, construction industry, cosmetics, information and communications technologies, e-commerce and the health sector.”
