Dundee City Council is to take part in a parliamentary inquiry into the computer games industry.
The Commons Scottish Affairs Select Committee plans to examine the potential impact of Chancellor George Osborne’s recent announcement to abolish tax relief for the sector.
Dundee is a key player in the industry and digital media firms employ hundreds of people. Abertay University is a centre for excellence in teaching the skills the sector needs.
The committee will seek to establish the contribution the video games industry makes to both Scottish and UK economies, and uncover what consultation the government held with the industry before deciding to abolish games tax relief.
MPs also want to examine alternative financial incentives for the industry.
The city council was asked to submit evidence to the inquiry by West End councillor Richard McCready. He said chief executive David Dorward had told him this would be done.
Mr McCready said, “The council needs to do all it can to protect jobs and encourage new jobs and this is even more important in these difficult economic times.
“I look forward to the council receiving a report on this important industry. I hope the council will speak with one voice and highlight how important this industry is and will make our views clear on the need for a tax break for the games industry.”
He added, “Jobs have to be our priority and we must do all we can to promote industry in Dundee.”Companies must “work harder”Meanwhile, a leading industry figure said computer games firms in the city need to “work harder than ever” to compete without any tax breaks.
Michael Rawlinson, director-general of trade body ELPSA, is a key-note speaker at an Abertay-organised conference in the city next month.
This event, Digital Spark, aims to get firms to focus on the importance of protecting their intellectual property rights, which can account for much of the value of a business.
Mr Osborne disappointed the industry by not including tax breaks in his Budget, even though several other countries have gone down that route.
The Treasury said two weeks ago it was prepared to consult companies on a review of its tax credit support system, though no quick decisions are expected.
Mr Rawlinson said, “The industry was extremely disappointed to see tax breaks pulled from under our feet. The government is committed to rebalancing the economy, but without thriving creative industries the stability of the recovery from recession has to be in doubt.
“We all need to regroup after the tax breaks decision and exciting initiatives like Digital Spark will help. Bringing together developers, producers and legal experts under one roof is essential for small businesses to protect their position.”
He added, “The brave new world is looking increasingly challenging, but there are still many new opportunities being created by digital distribution. But without a strong grasp of controlling intellectual property, companies are putting at risk all their hard work.”
Mr Rawlinson noted that the National Endowment for Science, Technology and the Arts had identified tax breaks as an important step in encouraging new business models.
Picture used under Creative Commons license courtesy of Flickr user oskay.