Computer games are important to Scotland’s economy, especially in Tayside. There is a cluster of games companies in Dundee, and Abertay University has established a worldwide reputation for the quality of its graduates. But there are worries about how secure the future is for the sector after the coalition government in London failed to introduce games tax relief.
The industry's trade association, TIGA, is calling on the Scottish government to set up a fund to boost the video games sector here. It is proposing the introduction of a creative content fund (CCF) to encourage new studio production and “stimulate the generation of new intellectual property”.
The CCF would operate on a commercial basis and provide up to £100,000 to game developers. TIGA believes that the measure could help put Scotland on the global map as a centre for video games development. It says the Scotland was losing out after the chancellor George Osborne abandoned plans to offer any tax relief to the industry.
In March last year, the Labour administration announced plans to support the with tax incentives. TIGA had campaigned for years on this. But after the general election, despite both parts of the coalition giving lip service to the idea, Mr Osborne dismissed it in his emergency budget, where he described the idea as "poorly targeted".
The fear grew that investment and jobs would go overseas to countries such as Canada which do provide incentives to the industry. It follows a report earlier this month, from the Irish government, of plans to double the games industry there in the next five years. The report discussed the need to offer incentives to research and development in Irish games companies.
At that time, Dr Richard Wilson, chief executive of TIGA, pointed out that “although Ireland has been through a wrenching economic downturn, it already has a very credible business proposition in place: a corporation tax rate of 12.5 per cent, an research and development tax credit and a well-educated and flexible workforce.
"Ireland has quite sensibly recognised that an opportunity exists to grow their video games industry. Unfortunately, while governments in Ireland and elsewhere around the world are taking steps to support their games development sectors, the UK coalition government lacks a clear strategy to help grow our own sector.”
Dr Wilson has used this to reinforce his call to the Scottish government to act, arguing that it “now has the chance to show decisive leadership in support of the video games industry. [Our] proposed CCF would improve developers' access to finance, stimulate original IP (intellectual property) generation and promote studio growth.
“It would enhance the independence of developers and strengthen the prospects for the expansion of the Scottish video games industry. In the long term it would establish Scotland as one of the best places in the UK to develop games. It would give a really powerful signal to the UK and global games industry that it's open for business.”
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