As well as the famous TT road race, the Isle of Man government reckons it has much to offer IT firms and e-businesses, and it is trying to persuade them to relocate to the island.

On his visit to London, we asked Tim Craine, the director of e-business for the Isle of Man government, about these and other carrots it was holding out.

Why are you out canvassing now?

This is a relatively new initiative. We've been working on it for a number of years to get the infrastructure tip-top and are putting legislation in place. Now we're going out and presenting our proposal to targeted companies in the IT and e-business areas because we feel that the Isle of Man is a very cost-effective place to be based.

So why should businesses relocate the Isle of Man?

Primarily because we are bringing in a zero rate of corporate tax from 2006. It's also because there's 40 per cent grant assistance available for hardware acquisition, software development, building rental, new build and the cost of relocating. That goes up to 50 per cent for training grants and it can be applied for on an annual basis. It's not a one-off.

How has legislation helped?

We had the Online Gambling Regulation Act (2001) to bring in casinos like MGM, Mirage, Rank and Littlewoods. They located to the island in anticipation of the US opening up but attitudes there hardened, so many of the online casinos closed up.

We've re-profiled our online offering by concentrating on sports betting. We've already got a well-established company on the island, Bet Internet. We are about to attract Chronicle and Paddy Power. There's worldwide interest in the sports betting side, particularly in the Middle East.

And what other benefits are there for businesses?

We've got two Synchronous Digital Hierarchy self-healing fibre rings to and from the island so that if one is broken the traffic re-routes automatically. The other big advantage is power resilience.

How can you afford all these sweeteners?

Because we have VAT, unlike Jersey and Guernsey. We've been able to cross-subsidise VAT tax to corporate tax. By law, we're not allowed a deficit, but we've just built a new £140m hospital, a new all-island incinerator, a new all-island sewage system and a new gas powered power station.

What other industries does the island attract?

Financial services makes up 46 per cent of our GDP. It's at its peak now and has been pretty stable for a number of years.

It's been a longstanding policy of the Isle of Man government to have a diverse economy. We make the majority of the world's thermostatic kettle controls, every pair of M&S slippers, ejector seats for fighter aircraft and landing gear for Airbus. We've also got our own film industry.

What attractions are there for people who live on the island?

Quality of life is a very important aspect of life on the island and one we like to preserve. Last year Mori carried out a survey [which found] that the Isle of Man had the highest quality of life of anywhere other than Devon. Ninety-three per cent of the population said they were either 'satisfied' or 'very satisfied' with the Isle of Man as a place.

Isn't it quite a closed community?

The Isle of Man is being international in its outlook - 52 per cent of the population was born here, which means we're a very cosmopolitan society.

Bet International needed to hire Thai speakers. It put an advert in the local paper, the Isle of Man Examiner, on the off-chance. It turned out that out of a population of 76,000 people there are 28 Thai speakers on the island.

People are interested to hear that because it shows we are not a closed society. We are a very open and welcoming society and very diverse culturally.

You also have no speed limits on the roads?

Outside of the urban areas there is no overall speed limit. It's the subject of quite intensive debate. Although it has to be said there is a lobby who isn't in favour of speed limits because it's an advantage [without them] that attracts people to the island.

We also have great sports facilities. There's also a personal income tax of just 10 per cent and only income over £8,225 will be taxed.