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Low corporate rate cited

It's a target of critics on both sides of the Atlantic but also the reason, as one expert put it on a recent edition of "60 Minutes" that it would be foolish to set up an overseas operation anywhere in the world but Ireland.

The Republic's low corporate tax rate of 12.5 percent is viewed as being beyond negotiation by the Iroish government. It is also being credited as the reason why a U.S. multinational has announced that it is setting up its base of operations in hard-pressed Shannon in County Clare.

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170 new jobs were announced last week in a joint partnership between the U.S. company Zagg, which manufactures accessories for mobile devices, and a local firm, Cregg Logistics.

The two intend to create a total of 300 positions within the next four years, according to the Irish news website, breakingnews.ie.

Speaking to Clare FM radio, the managing Director of Zagg International Distribution, Brian Packer, said that while it wasn't the only factor in his company's decision, Ireland's competitive corporate tax rate was a distinct advantage.

"To be honest with you, when we first started doing our homework, we weren't even aware of that," he said.

"We were looking for countries that were good at logistics and that were good at getting things through customs. Ireland rated fairly high in that direction, and then it almost the icing on the cake when they were able to tell us: 'Oh and by the way, we offer a fantastic corporate tax rate', that sealed the deal."

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