SNP MEP Ian Hudghton has welcomed assurances from the European Commission’s Competition Directorate-General that it has no plans to halt tax relief on the games industry.
The MEP recently raised concerns following reports that temporary concessions granted in 2007 were coming to an end, arguing that the absence of tax breaks could force companies to relocate from the EU to Canada and South Korea with the loss of high quality jobs. Although Scotland does not currently benefit from these tax breaks, those involved in the industry, with the support of the Scottish Government, are continuing to lobby the UK Government for it to be implemented here.
In his response to Mr Hudghton, Wouter Pieke of the European Commission’s Competition Directorate-General says:
“I fully agree with you that games constitute an important sector of creative industries in Europe and can reassure you that the Competition Directorate General of the Commission is not considering plans to halt an existing tax relief on the games industry.”
However, Mr Pieke goes on to say:
“With regard to possible relevant plans of Member States for the future, each project will continue to be assessed by the Commission on its merits under the State aid rules of the Treaty.”
Commenting on the response, Mr Hudghton, who shares his office in Dundee with Joe FitzPatrick MSP, Chair of the Scottish Parliament’s Cross Party Group on Video Games Technology, said:
“It is clear from Mr Pieke’s letter that the Commission is relaxed about extending tax concessions to the games industry. It is also clear that it is up to the UK Government to join the Scottish Government in making the case for tax breaks for the industry in Scotland so that our homegrown games industry can compete on a level playing field with their international competitors.” ENDS-