As someone pointed out POME stands for "Prisoners of Mother England".

The story goes...

Brits used to dump convicts/prisoners in this Island(Australia). When the 
prisoners arrived in Australia...they found this beautiful place with warm 
weather, great beaches, and lots of open land. They loved this place and felt 
sorry for the people living in UK..who live in cold weather and are cramped for 
space...Hence they inturn called the people living in UK as prisoners of mother 
england or poms. 

Santosh.

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