Dundee SNP

Dundee West MSP Joe FitzPatrick has written to the newly appointed Digital Economy ‘Czar’ Jeremy Hunt to invite him to visit Dundee to meet key staff at the University of Abertay and the largest employer in the area, Realtime Worlds.

The MSP is aware that Mr Hunt, Secretary of State for Culture, Olympics, Media and Sport, will receive “many invitations of this nature in the first few weeks of your appointment but ask that you give real consideration to the importance of this industry to the city of Dundee and to the UK as a whole.”

The MSP adds that “any tax relief granted would be extremely small in comparison to the return on the investment, and would be a big step in the recovery of our economy.”

The MSP wrote yeseterday to George Osborne, the Chancellor of the Exchequer and to Vince Cable, Secretary of State and the Department for Business, Innovation and Skills asking what was the new coalition government’s position on tax relief for the computer games industry.

The MSP has previously welcomed the positive progress before the election where Chancellor Darling gave support to the idea, although there was subsequently no money in the budget for it.

Joe FitzPatrick said: “I have strongly urged George Osborne to introduce tax relief for computer games development in the forthcoming budget on 22 June to put the Scottish industry on a level playing field with competitor countries around the world.

“I have also asked that he could progress the issue further in conjunction with other major stakeholders such as TIGA.

“I have also written to Vince Cable and am aware that the Lib Dems pledged support to the idea of tax relief for computer games industry before the election.”

Several months ago, the MSP raised a motion at the Scottish Parliament calling for tax relief for the games industry which employs up to 3,000 in Dundee.

Dundee West SNP Candidate Jim Barrie has written to Tory Leader David Cameron after it emerged that the recently published Conservative manifesto contains no mention of tax breaks for the computer games industry.

Joe FitzPatrick MSP for Dundee West has also written to the Tory Shadow Chancellor George Osborne and to Scottish Tory Leader Annabel Goldie.

 The Dundee politicians are concerned that in the event of a Tory victory on May 6, the Scottish industry will lose out.

 Jim Barrie said: “The games Industry has enjoyed significant growth over recent years and Mr Cameron will probably be aware that Dundee is a leading world centre for games development and training, however, due to tax breaks offered by other countries Dundee is now facing a competitive disadvantage.   

“I brought to his attention that a recent report by the games industry body TIGA, which I attached for his information, shows that unless a similar tax regime to Canada and France is introduced in the UK it could lead to the loss of 200 Jobs in Dundee over the next 5 years.

Commenting on their action, Joe Fitzpatrick said: “In contrast, offering tax relief on research and development activities for computer games companies could create 350 Graduate level Jobs and 45 million pounds of extra investment in Dundee over the next 5 years.

“The TIGA report also shows that the tax break would pay for itself, over five years the tax measure would cost 192 million but would deliver 415 million in tax receipts.

 “We have asked the Tories to reconsider their position and commit to introducing tax relief on research and development to support the computer games industry.”

Dundee West MSP Joe Fitzpatrick who has previously contacted UK Ministers to highlight the need for tax relief for the Computer Games sector has now lodged a motion calling on the Scottish Parliament to lobby the UK Government to implement such a tax break for game production in this years’ budget .

Mr FitzPatrick raised this issue previously with UK Ministers and held a members’ debate in the Scottish Parliament earlier this year on tax breaks for the UK gaming sector. The MSP’s move parallels the move by Tom Watson – the Labour MP for West Bromwich East – who has moved a similar motion at Westminster (Early Day Motion 934) – which has support from Labour, SNP, Tory and Lib Dem MPs calling on the Chancellor of the Exchequer to introduce tax relief for the video games industry.

A recent report by the games industry body TIGA shows that unless a similar tax regime to Canada and France is introduced in the UK it could lead to a decline in the industry. Foreign competitors in the United States of America, Canada and South Korea all offer major tax breaks at either national or regional level for game production or other substantial government financial support

Commenting on his move, Joe FitzPatrick said: “The TIGA Report  shows that Dundee could lose 200 jobs if the UK Government fails to implement tax breaks over the next 5 years, while introducing tax incentives would create 350 Graduate level Jobs and £45 million of extra investment in Dundee over the next 5 years.

“It also shows that over five years the tax measure would cost an estimated £192 million but would deliver £415 million in tax receipts.

“Although the Chancellor ignored the Games Sector’s demands in his pre-budget Report, over the last 12 months virtually every industry expert has championed tax relief on research and development for computer games as a way to create jobs and boost revenue.”

SECTOR CAN PROVIDE HUGE JOBS GROWTH FOR SCOTTISH ECONOMY

Dundee West SNP MSP Joe FitzPatrick has welcomed comments made by Stuart Cosgrove, Channel 4′s director of nations and regions and the chairman of the digital industries advisory group to the Scottish Government, supporting the need for tax incentives so that Scotland can maintain its top-ranking status in a field in which it excels.

Mr FitzPatrick has been critical of the failure of the UK Chancellor to bring forward tax incentives for the industry in his latest pre-Budget Report. Tax breaks could deliver 700 new jobs in Scotland’s Games industry.

In an article on TimesOnLine sub headlined “With big ambitions and tax incentives Scotland must maintain its top-ranking status in a field in which it excels”, Mr Cosgrove highlights the international gap that has developed because of a lack of incentives. He wrote:

“Since 1975, Britain has had the third-largest video games industry in the world, behind the United States and Japan. But tax incentives in other countries have seen the UK slip down the rankings behind Canada and South Korea, and possibly France. Richard Wilson, CEO of the games industry body Tiga claims that tax incentives would be a net benefit to Britain. “Our proposals would cost the Treasury £192m over a five-year period … and generate or safeguard £415m in tax receipts.”

“Last week, the UK government rejected tax benefits for animation and computer games. The Scottish government has yet to respond but is aware of
the advantages to Scotland. Although taxation is notoriously tricky and highly sensitive with an election approaching, effective fiscal stimulation of the games sector in Scotland is achievable.”

Mr FitzPatrick, who has campaigned for Scotland and Dundee’s computer games industry for upfront tax breaks for Research and Development, said:

“Stuart Cosgrove’s intervention is welcome. His comments not only show how the games industry is vitally important to Scotland’s economy but also
that it offers the country a means to create jobs and build up an even better reputation than we have now.

“Scotland’s Games industry is a key growth area for our future. We are world leaders in the games industry but our position and our jobs are under threat if tax incentives are not brought forward. Even the proposed cut in tax on profits from patents is of little use as games do not often get patents. Recent UK announcements of investment in life sciences and computer games are welcome, but they look increasingly like they have been timed to hide Labour’s failure to fix the tax system to favour these industries as soon as possible.”

Dundee West SNP MSP Joe FitzPatrick has today made one last effort to secure vital tax breaks for Dundee’s gaming industry.  Mr Fitzpatrick has been in touch with both the Chancellor, Alastair Darling, and the Secretary of State for Scotland, Jim Murphy, to highlight the need for tax relief for the Computer Games sector.  

 Mr FitzPatrick has raised this issue previously with UK Ministers and held a members debate in the Scottish Parliament earlier this year on tax breaks for the UK gaming sector.

 A recent report by the games industry body TIGA shows that unless a similar tax regime to Canada and France is introduced in the UK it could lead to a decline in the industry.

The report shows that: Dundee could lose 200 jobs – failure by the UK Government to implement the tax breaks could lead to the loss of 200 Jobs in Dundee over the next 5 years.

Tax incentives would create 350 Jobs in Dundee – introducing tax incentives for would create 350 Graduate level Jobs and £45 million of extra investment in Dundee over the next 5 years.

 Games Tax Relief would pay for itself -  Over five years the tax measure would cost an estimated £192 million but would deliver £415 million in tax receipts.

Commenting Mr FitzPatrick said: ‘‘I am confident that the Chancellor recognises the importance of tax breaks for the games industry and companies across the city will be looking forward to what the pre budget report has in store for them.

‘‘Over the last 12 months virtually every industry expert has championed tax relief on research and development for computer games with the recent report produced by the games industry body shows that tax relief would create jobs and boost revenue.

‘‘Tax relief measures for research and development to support the computer games industry are vital and I look forward to welcoming any proposals in this week’s pre budget report’’

Tax breaks for Computer Games developers would boost business

Dundee West SNP MSP Joe FitzPatrick will be hosting a showcase of the Scottish Computer Game Industry to highlight its importance ahead of a debate in the Scottish Parliament on supporting games development in Scotland.

Mr FitzPatrick, whose Dundee Constituency is the hub of Scottish Computer game development, secured the Members Debate to highlight the need for a change to the tax regime for the development of computer games.

At present companies pay tax on research and development which firms in other countries such as France and Canada do not face. The industry has raised concerns that this could seriously hamper the Scottish based companies who currently lead the world in computer game development.

MSPs will be invited to see first hand the successes of the industry and will have the opportunity to try some of Scotland’s most successful games.

The Event will be held on the 18th March at 1pm – 3pm in Committee Room 4 of the Scottish Parliament, and will be followed by the members debate at 5pm.

Multi million selling games developers Realtime Worlds and the University of Abertay Dundee, which has recently been given Scottish Government funding for a Skillset Media Academy which will specialise in computer game education, will be amongst those putting the MSPs through their paces with the latest technology.

Commenting Mr FitzPatrick said;

‘‘We have world leading computer games expertise in Scotland and I hope that by holding the showcase MSPs will appreciate how important this industry is to our future economic success.

’’Although the computer games industry is continuing to grow, despite the current economic climate, it is not growing as fast as elsewhere and the industry in the UK is at risk of falling behind. UK firms must pay tax on research and development activities, while in countries such as Canada and France rebates are given and this means they have a competitive advantage.

“I have secured a members debate on this issue as it is vitally-important that these successful new industries are supported to allow them to diversify and explore new ideas and develop new games in Scotland.”

Dundee West SNP MSP Joe Fitzpatrick today welcomed the announcement by the Cabinet Secretary for Education and Lifelong Learning, Fiona Hyslop MSP, that the Scottish Government will be funding a new Skillset Media Academy at the University of Dundee Abertay.

The University of Abertay Skillset Media Academy will specialise in computer game education, building on the University’s well-established expertise the field.

Skillset, the Sector Skills Council for Creative Media has secured the Scottish Funding Council (SFC) funding to ensure Scotland remains at the cutting edge of the highly competitive creative industries by providing first class industry-led education and training. The total package of 5.8 million pounds of funding will support two new Skillset Media Academies and the six collages in the existing Creative Loop Skillset Media Academy.

The support for the computer game industry to develop the talent needed for the next generation was welcomed by Mr Fitzpatrick who is currently gathering cross party support in the Scottish Parliament for a members debate on the UK tax regime for computer game development. UK firms must pay tax on research and development activities, while in countries such as Canada and France rebates are given and this means they have a competitive advantage.

Commenting, Joe Fitzpatrick said; “Today’s announcement is good news for Dundee’s creative industries and in particular our successful computer game developers.

“The new Academy at Abertay recognises Dundee’s importance as a centre for computer games development and will provide the skilled workforce to ensure Dundee continues to lead the field.

“Providing the training to produce the next generation of computer game developers is however only half the equation. We must ensure that we have companies for graduates to work for and there is a danger that this may not be the case as the current UK tax regime is hampering development in Dundee.

“I hope the UK Government will take notice of today’s announcement and take steps to mirror the support the Scottish Government has demonstrated for digital media services and the computer games industry. It is vitally-important that these successful new industries are supported to allow them to diversify and explore new ideas and develop new games in Scotland.”

Dundee’s importance as a centre for computer games development is being hampered by a tax regime which hinders research and development, according to Dundee MSP Joe FitzPatrick.

The city’s prominence as a pioneer in the video gaming industry is long-standing but recent comments by Colin Macdonald, Studio Manager for Dundee-based computer games developer Realtime Worlds, have drawn attention to the disadvantage UK-based developers face, with a requirement to pay tax on research and development which firms in other countries do not face.

Joe FitzPatrick said: “I note the comments from Colin Macdonald expressing concern for the future of the industry. Although the computer games industry is continuining to grow, despite the current economic climate, it is not growing as fast as elsewhere and the industry in the UK is beginning to fall behind.

“UK firms must pay tax on research and development activities, while in countries such as Canada and France rebates are given and this means they have a competitive advantage.

“I have put down a motion in the Scottish Parliament (available here) on the issue and am seeking cross-party support to secure a members’ debate. I have also been in contact on the subject with Jim Murphy, Secretary of State for Scotland.

“It is vitally-important that these successful new industries are supported to allow them to diversify and explore new ideas and develop new games in Scotland.”