Tax breaks for the video games industry are “vital” if more firms are to be attracted to Dundee.
SNP and Labour politicians both reiterated calls for action on the issue after it was revealed Outplay Entertainment are to set up in the city with a £2.5 million Scottish Enterprise cash boost.
“After a difficult year for the computer games industry in Dundee it is extremely good news that the city is attracting these new jobs,” said Dundee West MP Jim McGovern.
“But the sector is going to need support and investment as it competes on a global scale in order to avoid a brain-drain from Scotland in the future.
“That is why we will continue to put pressure on the Tory-led government to reinstate Labour’s tax relief plans for the industry.”
After officially making the Outplay announcement at Holyrood yesterday, First Minister Alex Salmond also raised the issue of tax breaks.
“It is vital that governments act in a way which consolidates and accelerates the development of the industry, supporting existing and exciting new enterprises such as Outplay Entertainment,” he said.Return”There’s no doubt that if we were able as we would wish to do to offer a tax relief scheme for the games industry, then it could pay back many times over.
“Indeed, until Scottish and UK-based games developers are allowed to compete on a level playing field with overseas competitors, there remains a risk of losing existing businesses to other countries and failing to attract new companies and highly-skilled jobs.”
Dundee East MSP Shona Robison added, “It is time for the coalition to do its bit, too, and reconsider its opposition to tax relief so that we can develop even more jobs in the industry.”
Dundee West MSP Joe FitzPatrick said, “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 from the UK Government to the computer games industry to match the support coming from the Scottish Government.
“There are huge opportunities available globally and we want the Scottish-based games industry to remain competitive in world terms.”
Tax breaks for the industry were promised by the previous Labour administration but never implemented, and then scrapped by the coalition government as part of their emergency budget in June.
Liberal Democrat MSP for North East Scotland, Alison McInnes, said, “This news is proof that the world-class creative talent and skills that both the city and Scotland boast will continue to attract investment, ensuring that we remain at the forefront of the video games industry.”