TIGA, the trade association representing the UK video games industry, has proposed to the Scottish Government that it consider the introduction of a Creative Content Fund to power the Scottish video game sector forward. TIGA has also continued to call for the introduction of Games Tax Relief. TIGA was cited several times in the Scottish Parliament at First Minister’s Questions on October 27th 2011. Alex Salmond, Scotland’s First Minister, described TIGA’s policies as “important proposals” and he added that “I recognise what TIGA has been saying about the computer games industry.”
Dr Richard Wilson, TIGA CEO, said, “The Scottish video games industry is a high technology, highly skilled, export focused industry. If Games Tax Relief and a Creative Content Fund could be introduced then the Scottish games industry would be well placed to grow and to make an important contribution to the economic recovery. It is excellent, therefore, that Scotland’s First Minister, Alex Salmond, has recognised TIGA’s proposals as “important” and the Scottish Government’s positive attitude towards the video games industry is very encouraging. TIGA looks forward to working with the Scottish Government to drive the Scottish video games industry forward.”
TIGA was recently mentioned in the Scottish Parliament during First Minister's Questions.
An extract from the debate is as follows:
Joe FitzPatrick (Dundee City West) (SNP):
4. To ask the First Minister what steps the Scottish Government is taking to support Scotland’s computer games industry. (S4F-00202)
The First Minister (Alex Salmond): We are taking a range of steps to support the computer games companies. In 2009, the Scottish Government invested £3 million in making the University of Abertay Dundee the United Kingdom’s first ever centre of excellence in computer games. Scottish Enterprise manages 15 computer games companies and has made major investments in Glasgow’s digital media quarter and in Seabraes Yards in Dundee. That commitment has borne strong results. For example, in February I was delighted to announce that Outplay Entertainment planned to establish its headquarter office in Dundee, creating 150 jobs and relocating from California.
Joe FitzPatrick: I thank the First Minister for his response. Earlier this week, the video games industry body, TIGA, and trade group the Association for UK Interactive Entertainment—UKIE—recognised the positive difference that independence could make to the industry and criticised the UK Government for failing to invest in the Scottish games sector. Will the First Minister join me in urging the UK Government to offer specifically targeted tax relief to help this vital industry thrive in Dundee and across Scotland? Will he also continue the support that the Scottish Government is giving to the industry by considering the case for a creative content fund and have the relevant minister meet me and games industry representatives to explore that proposal?
The First Minister: Those are very important proposals. I recognise what TIGA has been saying about the computer games industry. Its case for tax relief is based on the argument that revenues would increase if the tax relief were granted—it cites international examples—because of the attraction of key investments into Dundee and Scotland. That is an example of why we need control over a tax base if we are going to offer such incentives in a successful way. On the last point, Joe FitzPatrick is aware that the Scottish Government has been asked to examine the establishment of a creative content fund to encourage new and further investment. I have asked officials to meet TIGA in early course to discuss how the proposal might be developed.
Mark McDonald (North East Scotland) (SNP): Given that the UK Government has not only failed to introduce games tax relief, despite assurances by the previous Government that it would—the present incumbents show no desire to do so—and given that Ireland appears to be considering tax breaks in this area, does the First Minister agree that it is vital that the UK Government acts now to ensure that the games industry continues to invest in Scotland and does not start looking elsewhere? If the UK Government will not do so, is it not time that it gave us the powers to do it ourselves?
The First Minister: Yes, it is vital; yes, we should have the powers. The illustration of that is clear: the proposals put forward by TIGA, based on international examples, indicated how to be competitive. This sector could operate in an environment where tax relief and tax breaks result in an increase in revenue because of increased investment. It is obvious to members in this chamber that successive Labour Governments and the Conservative and Liberal Democrat Government have refused to do that. Would it not be better if we controlled the tax base and tax incentives so that we could respond in the way that this vital industry wants for Dundee and for Scotland as a whole?
Gavin Brown (Lothian) (Con): Has the First Minister considered a targeted tax relief with a power that he actually has, namely business rates?
The First Minister: I point out that we have considered a very well-targeted business rates policy that has resulted in 85,000 businesses across Scotland enjoying the small business bonus. Given some of the things that I have been hearing in the Tory leadership contest, I am not certain that a future Conservative leader will be as dedicated in their support for that Scottish National Party initiative as Annabel Goldie has been.