The head of a Dundee video games firm has backed a call for a fund to be set up to aid the industry.
Colin Anderson, managing director of Denki, wants the Scottish Government to introduce a creative content fund that would provide developers with up to £100,000.
He said: ”By adopting this policy, the Scottish Government would ensure Scotland’s exceptional creative talent develops in a sustainable way for the long-term benefit of the Scottish economy.”
The proposal has come from games industry association TIGA, which is worried that jobs and investment are being lost to other countries after the UK Government decided not to give the industry tax relief.
Chief executive Dr Richard Wilson said: ”TIGA’s proposed CCF would improve developers’ access to finance, stimulate original 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.”
Dundee is a leading player in the UK games industry.
Abertay University is a recognised centre of excellence in training students in the various skills needed to support games development and numerous companies have sprung up locally in recent years.
Mr Anderson’s firm has launched several games this year, for devices such as the iPhone and iPad.
However, other businesses have not fared so well and the collapse of Realtime Worlds in 2010 and Cohort Studios this year has demonstrated the difficulties the sector faces.
The proposed CCF would make investment available on a matched funding basis.
It would be entitled to recoup the money from recipients out of successful sales of the games once they had generated a certain amount of revenue and over an agreed time period, together with a defined share of the additional profits.
These profits could then be used to augment the CCF and be applied to future projects.
A range of Scottish game development studios have backed the proposal.
More than half of Scottish game developers said that a lack of finance was holding back their businesses, according to a recent TIGA survey.
A Scottish Government spokeswoman said: ”We already provide significant support for the games sector in Scotland. In 2010-11, this totalled more than £6.75 million and included £3.35 million direct support to computer games companies from Scottish Enterprise, Creative Scotland and the Scottish Government.
”We will continue to put pressure on the UK Government to implement tax breaks, which we believe is the best way enhance the competitive edge of our computer games industry on the international stage.
”Giving Scotland control of these tax levers would be the best way of ensuring we support all our key industries.”
A UK Treasury spokeswoman said: ”The Government is committed to making the UK the best place to start, finance and grow a business, and particularly wants to make the UK an attractive location for innovative industries.
”Both the Patent Box and research and development credits contribute to this, with the cuts to the main rate of corporation tax benefiting all businesses.”
Photo Tim Ireland/PA Archive