Tag Archive for computer games industry

Politicians Call for Action Over EU Query to Video Games Assistance

April 17, 2013 Joe FitzPatrick MSP No comments
Joe at leading Dundee-based computer games company Outplay Entertainments last year.

Joe at leading Dundee-based computer games company Outplay Entertainments last year.

The European Commission has (today, Tuesday) launched an investigation into the UK’s proposed help for the video games industry, saying it might distort competition and questioning whether it is necessary to help stimulate the industry.

Now MSPs Joe FitzPatrick and Mark McDonald are urging Scots to respond to the Commission and help protect a growing industry.

Speaking after the move was announced by the Commission, Joe FitzPatrick MSP, who represents Dundee City West where a substantial number of Scotland’s Video Games companies are located said: “I have been campaigning for this tax relief for the video games industry because it is absolutely essential to give the games developers a level playing field to compete internationally.

“Tax relief is necessary to support existing jobs and help create new ones, as well as make sure that Scottish companies get a share of the expected growth in the global industry.

“I campaigned alongside TIGA for a long time and was delighted that the UK Government agreed to introduce it. The computer Games industry is important for Dundee and for Scotland.

“We must do all we can to protect it. It would be a bitter blow if this was to be scrapped after the UK Government took so long before dangling this opportunity in front of developers.”

North East MSP Mark McDonald, the Convenor of the Scottish Parliament’s Cross Party Group on Video Games Technology, said: “France has a tax relief for its games industry and other cultural enterprises have had tax relief approved by the Commission, I can’t see why they thought they needed to investigate this one.

“I’ll be talking to the games companies and their representatives and encouraging them to get their voice heard.  I see that TIGA has already started the process and I’ll be speaking to Dr Richard Wilson to see what help I can give.

“I’ll be writing to Brussels myself and putting across the case for the Scottish games industry and I’m encouraging everyone else with an interest in Scotland’s video games to do the same.”

 

 

 

MP Hails Chancellor’s Tax Breaks for Computer Games Development

May 5, 2012 Stewart Hosie MP No comments

Dundee East MP Stewart Hosie believes that tax breaks for computer games development will have wider benefits for the rest of Scotland.

The Dundee MP has hailed the Chancellor’s decision to grant tax relief to software companies as boost to the economy.

Stewart Hosie said: My colleagues and I have been pressing for years, along with games body TIGA, for tax relief for games developers and we are certain that this new measure will help to create jobs and promote investment.

“TIGA has played a vital role in making the case over the ast four years.

“The quality of TIGA’s research and its tenacious campaigning have enabled MPs including myself to make the case for a tax relief for the video games industry in Parliament.

“I now hope this new measure will help to create jobs and promote investment in the high-technology Scottish Games Industry.

“TIGA claims that the industry supports in the region of 2000 jobs with around 700 of these in games development and Scotland-wide generates around £30 million in tax revenue. Dundee is a key location for the industry with dozens of companies and we hope this new measure will cobntribute to further success for the sector.”

MSP Makes Pre-Budget Plea To Chancellor For Support for Video Games Industry

March 9, 2012 Joe FitzPatrick MSP No comments

Dundee City West MSP Joe FitzPatrick, Convenor of the Cross Party Group on Computer Games at the Scottish Parliament has written today [2 March] to the Chancellor of the Exchequer George Osborne urging him to extend support to video games developers in his forthcoming Budget so that they can compete on a level playing field with international competitors.

Joe FitzPatrick said: “Although we have been campaigning on this point for some time alongside Games companies and TIGA, the forthcoming Budget offers the Chancellor a new opportunity to listen to his colleagues and offer support for the sector.

“In my letter, I have asked for clarification of what efforts, if any, his Government has made to establish whether a Games Tax Relief would, as TIGA suggests, ‘more than pay for itself.’

“Over a year ago, the UK Government was asked to initiate such a study, which would establish the veracity of these claims once and for all. It is difficult to avoid the conclusion that this appears to be an opportunity missed.

“I have reminded the Chancellor of recent comments by his party collegues on this issue. The Rt. Hon David Davis MP, for example, has made clear, ‘we won’t pay the deficit off if we don’t get growth.’ A carefully targeted Games Tax Relief could deliver a vital spur for games developers who are swimming against the tide in the face of stiff competition from better-supported developers overseas, as well as deliver a much-needed boost to HM Treasury coffers.

“In the foreword to TIGA’s study, the Rt. Hon. John Whittingdale MP, his Conservative colleague and Chairman of the Culture, Media and Sport Select Committee noted that, ‘a new Games Tax Relief…would generate a good return on investment,’ as well as expressed the belief that, ‘if the right support from Government is forthcoming, the UK game development sector can take advantage of projected [global] growth.’

“During an oral evidence session of the Culture, Media and Sport Committee on 30 March 2011, The Rt. Hon Jeremy Hunt MP, Secretary of State for Culture, Olympics, Media and Sport, made clear that tax breaks for the video games industry are, ‘constantly under review.’

“The Culture Secretary went on to explain that while the UK Government, ‘would love to be able to support the video games industry in the way that we support the film industry…there is a cost to these measures.’ It was also noted that a tax break for the industry is something that his Department, ‘would like to happen,’ but that this would have to be considered in the context of the overall financial deficit.

“While there can be no doubt that the introduction of a Games Tax Relief would ostensibly come at a cost to HM Treasury in terms of diminished tax receipts, any analysis of this issue must appreciate that it is believed that the measure would create a context in which developers would flourish, enabling them to expand and invest in order to generate a net income for HM Treasury over four years, as TIGA’s proposals outline.

“TIGA’s proposals for a Games Tax Relief suggest that a targeted measure could generate £172 million in new and protected tax receipts to HM Treasury over four years at a cost of just £96 million. This would amount to a return of £1.21 for every £1 of relief offered.

“In addition to this, TIGA believes that a Games Tax Relief would create and protect 4,661 direct and indirect jobs across the UK, would help to safeguard and increase the £188 million investment expenditure made by studios, as well as would increase the sector’s contribution to UK GDP by £283 million.

“Games developers are high-technology, highly skilled, low carbon businesses with the potential to succeed in global markets, provided that they are given the right support. The industry is also export-oriented and its global growth potential represents an opportunity for us to help rebalance the economy and support economic recovery.

“I have reminded him that the the Scottish Affairs Select Committee study into the Video Games Industry in Scotland, published in January 2011, called upon his Government to, ‘undertake a full and comprehensive assessment to determine the benefits of such a [Games Tax] relief.’

“I hope that the Chancellor will take all these points into account and listen to his colleagues and computer games bodies while he is finalising his Budget and see the good financial case for introducing support along these lines.”

MEP CALLS FOR EXTENSION OF GAMES INDUSTRY TAX BREAKS

February 21, 2012 Ian Hudghton MEP, Joe FitzPatrick MSP No comments

SNP MEP Ian Hudghton has made a plea to the European Commission to extend tax relief for the games industry, describing as “alarming” recent reports that temporary concessions granted in 2007 are about to end.  Mr Hudghton’s call comes in the wake of TIGA’s recent bid to have tax breaks for the industry included in the UK Government’s forthcoming Budget.

 

Without these concessions, the MEP argues, games companies are liable to shift production out of the EU to countries such as Canada and South Korea with the loss of high quality jobs. Although Scotland does not currently have the benefit of these tax allowances, those involved in the industry, with the support of the Scottish Government, are continuing to fight for it to be implemented here.

 

The MEP, who shares an office in Dundee with Joe FitzPatrick MSP, Chair of the Scottish Parliament’s Cross Party Group on Video Games Technology, has written to Wouter Pieke of the European Commission’s Competition Directorate-General appealing for the current tax breaks to be extended past their 2012 deadline to give Scotland a chance to benefit from the competitive advantage they afford.

 

Writing to Mr Pieke, Mr Hudghton said:


“I have been alarmed by recent reports that the European Commission is considering halting tax relief on the games industry in the EU. This would have a devastating impact on the many companies which have been established here in Scotland and which are providing high quality jobs at a time of severe economic challenges.

 

“Although Scotland does not currently benefit from these tax breaks, the games industry with the support of the Scottish Government is currently arguing the case for Westminster to introduce tax relief to ensure that this industry can compete in the global market.

 

“Whilst I appreciate that the initial tax breaks were introduced on a temporary basis, experience shows that, without these incentives, companies will simply take their production elsewhere, out of the EU to Canada, South Korea and so on.

 

 

“I’m sure you will agree with me that we should be doing all we can during these tough financial times to ensure that the EU remains competitive in the global games industry market.  Removal of the current tax relief on the games industry in the EU would be a step in the wrong direction and I would urge you to consider the consequences this would have not just on the companies which are based in my constituency but in the wider EU context.”

 

Welcoming Mr Hudghton’s intervention, Joe FitzPatrick MSP said:

 

“The Westminster government’s failure to intervene and create a level playing field for our firms shows a complete lack of imagination.

 

“TIGA’s proposed Games Tax Relief would more than pay for itself. Over five years, it is estimated that a relatively modest £96 million tax relief would help to generate almost £200 million investment in the sector and £172 million in new and protected tax receipts to HM Treasury. In addition, it would secure almost 5,000 jobs.

 

“The Chancellor repeatedly stresses the need to support export-oriented, highly skilled, low carbon businesses, yet when the time comes to put his money where his mouth is he falls far short of his rhetoric.

 

“With growth in the economy floundering, the Chancellor needs to take decisive action in his forthcoming budget to support growth in this sector. Responsibility for doing so falls squarely on his shoulders, as only he has the necessary tax powers to do so.”

 

The inaugural meeting of the Cross Party Group on Video Games Technology at the Scottish Parliament will take place on Thursday 8th March 2012 at 5.30pm in Committee Room 5. The Cabinet Secretary for Finance and Sustainable Growth has confirmed that he will be in attendance. The group is open to all those with an interest in the industry, particularly policymakers, developers as well as those involved in education and training. Please direct all enquiries to games@joefitzpatrick.net or call 01382 903212.

 

Tax Levers Required at Holyrood For Computer Games Industry to Reach Full Potential

October 27, 2011 Joe FitzPatrick MSP No comments

The SNP Government has reaffirmed its support for the computer games industry in Dundee and across Scotland.

MSP for Dundee City West Joe FitzPatrick is confident that the games industry has a bright future but he said, during First Minister’s Question time today at Holyrood, that for the sector to achieve its full potential, greater powers for the Scottish Parliament must be in place, including control of the tax levers.

Speaking in Parliament, he said: “In Dundee and across Scotland the SNP Government have supported the creative and digital industries.

“I am currently in the process of establishing a Cross Party Group focussed on the Computer Games Industry in Scotland to maintain this support.

“The Scottish Government has already showed clear leadership on this issue in the face of Westminster neglect, with £3.35 million direct support provided to the games sector as part of an overall £6.75 million given by the Scottish Government and its agencies in the last year.

“Over the last few weeks I have been in contact with TIGA to discuss this interesting proposal for a Creative Content Fund to provide direct funding to games developers that can then be recouped from the profits made by successful developers and reinvested yet again to allow even more small businesses to flourish.

“TIGA’s Games Tax Relief proposal estimates that while it would initially cost around £200 million in loss as tax receipts, they would ultimately generate almost £400m in extra tax receipts for the Treasury as these businesses grow.

“If the Scottish Government was given control over these vital tax powers then we would be able to get crucial support to these small businesses, enabling them to create jobs and fuel the economic recovery.

“TIGA and the industry recognise this but the UK Government is at odds with the best interests of the games industry’s needs in Scotland.

“The First Minister has promised a meeting between the SNP Government and TIGA to discuss the Creative Content Fund and the best way to move forward.”

MSP Calls for Discussions on Computer Games Creative Content Fund

October 26, 2011 Joe FitzPatrick MSP No comments

Joe FitzPatrick Dundee City West MSP today responded to calls from TIGA for a Creative Content Fund to be created to support the Scottish computer games industry and said it is “crucial that all potential avenues of support for the computer games industry in Scotland should be explored”.

Richard Wilson of games body TIGA in comments to Develop, a news site for the games industry said a vote on Scottish independence “could absolutely reshape games industry policy across Scotland” and that the UK Government is “failing to invest in the Scottish and UK Game development sector.”
The industry has acknowledged the support of the SNP in Government for tax incentives for games development but that the powers lie with the UK Government which has refused to introduce the tax plans.
Andy Payne, Chairman of UK trade group UKIE also comments to Develop: “Should Scotland become fully independent, we might anticipate more targeted measures for the video games industry, something the current UK Government would need to be mindful of.”

Joe FitzPatrick MSP today said: “I am currently in the process of establishing a Cross Party Group focussed on the Computer Games Industry in Scotland.”

“Earlier this year I met with Richard Wilson from TIGA to discuss his proposals, including a Creative Content Fund. TIGA’s Manifesto was presented to the Scottish Government at that time and we asked Scottish Ministers to look into what additional support we can give to the computer games industry.”
“The Scottish Government has already showed clear leadership on this issue in the face of Westminster intransigence, with £3.35 million direct support provided to the games sector as part of an overall £6.75 million given by the Scottish Government and its agencies in the last year.”

“Over the last few weeks I have been in contact with TIGA to discuss this interesting proposal for a Creative Content Fund to provide direct funding to games developers that can then be recouped from the profits made by successful developers and reinvested yet again to allow even more small businesses to flourish.”

 “I hope that by creating a Cross Party Group at the Scottish Parliament on the computer games industry we will be able to explore all potential avenues of support that we can provide to these businesses that are so vital to ensuring that we have a strong economic recovery.”

“While I will make sure that the Scottish Parliament thoroughly considers what it can do to support the games industry, the UK Government must also play its part and accept that there is a consensus in favour of adopting targeted tax breaks for the sector.”
“A specifically targeted Games Tax Relief, as proposed by TIGA, has the potential to allow the games industry to expand, creating jobs and increased tax revenue for the UK Treasury.”

“TIGA’s proposals for a Games Tax Relief show that it could create or protect over 9,000 jobs. While it would cost £200 million to introduce a Games Tax Relief, TIGA is confident that it would generate around £400 million in extra tax receipts over the long term, meaning that this it would more than pay for itself.”

“Only the UK Government has the power to introduce a Games Tax Relief and it is imperative that the Chancellor George Osborne looks at this again. The Chancellor’s colleague, Ed Vaizey MP, the UK Minister for Culture, Communications and Creative Industries, has indicated his support for a Games Tax Relief on several occasions, but it has fallen on deaf ears.

This division at the heart of the UK Government continues to threaten the future of the games industry in Scotland. The Chancellor needs to listen to his own Minister and take another look at this issue before it is too late.”

“Our games sector is currently facing stiff competition from overseas competitors who are benefitting from a great deal more support than that being given by the UK Government, which is showing a decisive lack of leadership in this matter.”

“The UK Government must live up to its responsibility to act on this issue given that it possesses control over the economic levers needed to implement this policy.”

“If the Scottish Government was given control over these vital tax powers then we would be able to get crucial support to these small businesses, enabling them to create jobs and fuel the economic recovery.”

“Only with independence and the full economic powers that this provides will the Scottish Government be able to realise the full potential of the computer games industry here in Scotland.”

MSP’s Call For Tax Relief Backed By Games Guru

August 9, 2011 Joe FitzPatrick MSP No comments

Dundee MSP Joe FitzPatrick’s campaign for tax relief for computer games companies had been backed by a leading figure in the computer games sector, Sandy Middleton, who founded YoYo games in Dundee in 2006. The company has hit the world’s top ten charts with its paid-for game, ‘They Need To Be Fed’ .

Joe FitzPatrick said: “I was pleased to have an email from Sandy and to hear of his support for our campaign to get tax relief from the UK government to support the games industry. I was also delighted to hear the company, YoYo games, based at Abertay University, is having continuing success in providing paid-for-games for Android, iphones and other mobile phones and for handheld platforms such as ipads.

“To achieve a placing in the top ten in the world sales chart is very creditable success and re-iterates the ingenuity and flexibility which the Dundee-based industry continues to demonstrate.

“With a dramatic increase in the number of people possessing smartphones, and nearly 50% of teenagers now owning one, the world market is huge and continuing to expand and presents a huge opportunity for the games sector to expand.

“Although there are relatively-low costs associated with developing these games, companies like YoYo deserve support to continue to thrive against international competition which is supported by tax breaks.

“We will continue to press the UK Government to introduce targeted games tax relief along the lines already on offer in the UK to the film industry and which is provided for games companies in Ireland, Canada and several states in the US.’

Computer Games Industry Needs Help to Compete, Says MSP

February 8, 2011 Joe FitzPatrick MSP No comments

Dundee West MSP Joe FitzPatrick today [Mon 7 Feb] today reacted to publication of the Scottish Affairs Committee Report on the Computer Games Industry.

Joe FitzPatrick said: “The Report notes that, mainly due to the collapse of Realtime Worlds, the number of Scottish employees in the computer games industry has fallen by 18% in 2010.

“It suggests that ‘this decline has been primarily attributed to the generous subsidies for games companies available overseas.’

“Significant tax credits are on offer for companies developing games in Canada and France, while other countries like Japan and Finland offer other financial incentives

 “I am pleased that the Report has highlighted the £5m prototype scheme run by Abertay University to produce graduates with the ‘hard skills’ which the industry requires as an ‘excellent example of support targeted towards a priority issue for the industry.’

 “The creative industries employ up to 3,000 in Dundee and the Scottish Government and its agencies are working hard to support the sector. It is time for the Coalition to do its bit.

“Any tax relief granted would be extremely small in comparison to the return on the investment, and would pay for itself. The UK Film Industry already receives tax relief of £110m per year although it is estimated that the Computer Games Industry would only require £192m over five years.

“The Report rightly draws attention to this anomaly. Tax relief for games development would create more money for the taxpayer than it would cost.

“Now is the time for stronger support and investment to the Computer Games Industry – there are huge opportunities globally available.”

MSP Welcomes Dundee College’s Closer Ties with Computer Games Body

February 8, 2011 Shona Robison MSP No comments

News that Dundee College has joined the Computer Games Industry body TIGA was welcomed today in Dundee by MSP Shona Robison.

Dundee College, one of Scotland’s largest higher education colleges, offers courses suited to students looking to enter the games industry, including three HNC courses in Computing Software Development, 3D Modeling and Animation and Computer Games Development.

Commenting on the announcement, Dundee East MSP Shona Robison said: “Dundee College is already heavily involved in the Computer Games Industry, being the host of the app development conference App Jam last year.

“It offers industry-approved training locally and membership of TIGA will help to further strengthen links between the city and the games industry.

“Various industry reports have shown that there are many opportunities for people with the specific skills required by the computer games industry.

“This will help to tailor the training offered locally to the opportunities being offered in an industry which is largely Dundee-based.”

MSP Concerned Over Computer Games Industry Body’s Warning on Jobs

January 26, 2011 Joe FitzPatrick MSP One comment

Dundee West MSP Joe FitzPatrick today [Wed 26 Jan] today reacted to revised figures from Games Industry body TIGA that show that tax relief for Research & Development could create and safeguard 3,366 development jobs and £431m of investment in the computer games industry.

Joe FitzPatrick said: “I am disappointed to see that the number of employees in the computer games industry has fallen by 9% and that the industry’s contribution in tax revenues fell while in our overseas competitor countries government support for video games development has continued to grow.

“The global market overall is increasing but as TIGA have warned and as we said, the development of games in Scotland and the UK is not keeping pace with our competitors. It is not too late for the Coalition to heed these warnings and introduce relief to allow Scottish games companies to expand.

Joe FitzPatrick said: “We have urged George Osborne to introduce tax relief for computer games development to put the Scottish industry on a level playing field with competitor countries around the world including the United States of America, Canada and South Korea, who all offer major tax breaks at either national or regional level for game production or other substantial government financial support.

“Although the Lib Dems pledged support to the idea of tax relief for computer games industry before the election they have reneged on this.”

“The games industry employs up to 3,000 in Dundee and the Scottish Government and its agencies are working hard to support the sector. It is time for the Coalition to do its bit.

“I have long believed 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.”

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