A leading academic at Abertay University has backed a campaign by two local MPs demanding the reinstatement of tax breaks for the computer games industry, following claims the plans could cost Dundee 200 jobs.
Deputy vice-chancellor Professor Nicholas Terry joined condemnation of Chancellor George Osborne’s decision to renege on his predecessor Alistair Darling’s pledge of tax relief for the sector.
An early day motion, signed by Dundee East MP Stewart Hosie and Angus MP Mike Weir, was submitted to the UK Parliament yesterday condemning Mr Osborne’s policy.
It came just hours after publishing giants Activision Blizzard and Sony warned they are re-considering investment in the UK because of the scrapping of tax relief.
Professor Terry called the chancellor’s decision, delivered in an emergency budget last week, “highly disappointing.”
He said that the amount of money being spent on the tax breaks was the same as that supporting the film industry, and that supporting the games sector would have cultural as well as economic benefits.
He also pointed out that the relief would have brought Britain in line with many of its main competitors in the gaming world, such as France, Canada and Japan.
Professor Terry said, “The impact of tax breaks may not seem important to companies in terms of cash value, but it is a signal by the government and a vote of confidence for investors.
“It will chip away, as for investing in the UK, as companies may rather choose the likes of France, Canada or Japan and if long-term investment is under threat it could lead to job losses.”
He added, “This university would like to support the campaign to re-establish the tax breaks, given we were in providing evidence to the Treasury that lead to the tax breaks in the first place.”
The motion says Mr Osborne’s decision “will affect Scotland disproportionately, as Dundee alone accounts for 10% of the total UK computer games industry.”VitalMr Hosie said it is “absolutely vital” that the tax system gives relief to the gaming sector.
He said, “If we are serious about investing in the computer games industry then the government needs to look seriously about supporting.”
Mr Weir said, “The point is the government keeps talking about building up jobs for the future, but this industry has high potential, especially in Dundee and Tayside, and we should be pushing forward to create good quality jobs for our industry.
“It is ridiculous they are not prepared to keep a tax break for an industry that would help us cement our positions as world leaders in it.”
Scottish Labour leader Iain Gray has called on the SNP to find money to prop up the industry in Scotland.
He said, “The SNP have said the Tory/Lib-Dem plans will cost 200 jobs in Dundee.
“They are right, but they have still done nothing despite John Swinney announcing they had £300 million from end-of-year flexibility.Urgent”It is even more urgent John Swinney takes £5 million of that, equivalent to the tax break, and find a way to support the games industry.”
He added, “It is no longer just about saving those 200 jobs in spite of the Tories and the Liberals, but ensuring even more are not lost.”
A Scottish Government spokeswoman said, “The Scottish Government already invests significantly in the success of the games industry.
“Scotland’s games developers are telling us that tax incentives are required.”
She added, “We have made that case to the UK Government and it is disappointing that the UK Government has not listened.”
Photo used under Creative Commons licence courtesy of Flickr user catatronic.