Dundee’s video game industry could be lost to foreign markets if assistance to the industry is not forthcoming from the government.
That was the warning from Dundee West MP Jim McGovern upon the publication of a Scottish Affairs Committee report into the games development industry in the country.
Compiled by a cross-party group of MPs and revealed at Abertay University, the report addresses a number of issues crucial to securing the country’s position in the lucrative games market, describing the case for tax breaks for developers as “compelling” and urging educational institutions to help develop the next generation of programming talent.
With countries outside the UK heavily subsidising their gaming industries, there are real fears top British companies and individuals could be lured abroad unless action is taken to address the issue.
With Dundee central to Scotland’s involvement in computer games and IT development, Mr McGovern fears what may happen should steps not be taken to bolster the sector at home.
Asked by The Courier how the industry could fare should more support not be forthcoming from the government, he said, “Well I would like to think that it will still be in Dundee, but if the government doesn’t act then it could easily find itself in Canada or France.Happy”I’m happy with the report not everything in it but I agree that there is obviously more to this industry than kids playing Grand Theft Auto.
“I was somewhat confident to hear after Ed Vaizey’s (the culture minister) visit to Abertay last week that he would not rule out tax relief and hopefully he might reconsider.”
Tax breaks for the industry, promised by the previous Labour administration but never implemented, were scrapped by the coalition government as part of their emergency budget in June.
The committee, although unable to come up with a consensus on the issue, did recommend the possibility of introducing tax relief be kept under review.
Also emphasised was the so-called “brain-drain” effect, where Britain remained at risk of losing some of its best talent should the industry not be assisted.
While Abertay University was praised for a £5 million government-supported prototype initiative, other educational institutions were accused of not being focused enough.ConcernDescribed as a matter of “real concern” in the published document, the committee has warned education needs to place more emphasis on mathematics and computer science in order to produce students capable of stepping into the workplace.
Fellow committee member Lindsay Roy, who also urged Westminster to back the industry in a time of need, echoed the worries of Mr McGovern.
The MP for Glenrothes said, “I think this is a crucial part of our economic growth and it’s important that we invest in this. I’m delighted that Ed Vaizey visited last week and I think that Abertay has a great model for others to follow.
Ian Davidson, chairman of the committee, added, “The committee strongly believes that the video games interactive technology industry is potentially a world leader for the UK and the government must do more to encourage development and growth in the sector.”
The gaming industry in Scotland faces an uphill struggle to compete with foreign markets with the size of the development workforce shrinking by some 18% in 2010, mainly due to the collapse of Dundee firm Realtime Worlds.
Dundee West MSP Joe FitzPatrick welcomed the report’s comparisons of games development with film production in the UK a sector that is granted tax relief of £110m per year.