Responding to figures published today by TIGA, the trade association representing the video games sector, which show that the industry is losing out overseas competitors, Convener of the Scottish Parliament’s newly established Cross Party Group on Computer Games Technology, Joe FitzPatrick MSP echoed the call for increased support from the UK government.
Joe FitzPatrick said:
“These figures released by TIGA show that developers across the UK are losing out on investment to their overseas competitors, where significant government support is in place.”
“The video games sector is a significant employer in Scotland, particularly in Dundee where we have a cluster of developers.”
“While our businesses continue to compete, TIGA’s figures show that many are struggling to stay afloat in a fiercely competitive international environment.
“In Canada, a 25% tax break has been introduced on research and development for the industry, while in France, a 20% tax break was introduced back in 2007, which was granted EU approval and has been shown to be within the law.
“The future success of the video games industry is under threat as other countries cut taxes for the sector in order to give their developers a competitive edge.
“The SNP government has consistently supported a Games Tax Relief, recognising the role that it could have in supporting this promising industry, but these powers remain reserved and the UK government has refused to step in and create a level playing field for our firms.
“The time for action is now. Before the General Election in 2010, then Labour Chancellor Alistair Darling promised to support the industry but failed to include provision in his final budget. Both the Tories and the Liberal Democrats expressed their desire to implement a Games Tax Relief, but they turned their back on the industry once in power, letting down thousands of workers across the country and risking the future of the industry.”
“Last week the Cross Party Group on Video Games was formally established in the Scottish Parliament. I very much hope that by getting developers and policymakers in the same room that we can come up with constructive solutions to support the industry as well as put pressure on the UK government to recognise the need for decisive action.”
“Export-oriented industries like the video games sector are exactly the kind of industries that the Westminster government should be supporting in order to fuel the economic recovery. The Chancellor cannot afford to delay any longer and must include a Games Tax Relief in his forthcoming budget.”