The number of Australian businesses expanding into the UK last year more than doubled, said Tim Holmes, UK Trade & Investment director general in Australia.

According to the 2004-05 UK Trade & Investment report on inward investment released today, 42 Australian companies made new investments in the UK, ranking Australia 2nd in the Asia Pacific region behind Japan.

Australia's innovation and service enterprises led the way with seven from the information technology sector, four environmental services companies, three from the finance sector and three healthcare organisations.

“Australia is punching well above its weight in international markets. The growth is coming from Australia's traditional big hitters in the resources sector, and from its dynamic new businesses.  Many of these have achieved market leadership locally with world class R&D and now are seeking new markets for their products and services.

“Over the last 18 months we’ve seen a huge increase in Australian companies seeking our advice and assistance to start operations in the UK,” Holmes said.  “This has been driven largely by the Australian technology and services sectors which recognise the advantages of launching their international operations from the UK.”

More than 1,200 Australian businesses have offices in the UK.  The value of these businesses makes Australia the 5th largest foreign investor in the UK.

Holmes said that many Australian businesses set up in the UK as a regional European hub.  “The UK is the most attractive place in Europe for starting a business.  Investors recognise that we’ve taken a lead in de-regulating and opening up markets to international competition."