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MPs revisit video game tax breaks | MPs revisit video game tax breaks |
(2 days later) | |
By Daniel Emery Technology reporter, BBC News | By Daniel Emery Technology reporter, BBC News |
MPs are to examine how a lack of tax breaks has affected video games development in Scotland. | |
The coalition government refused to award games developers the same tax advantages enjoyed by film-makers. | |
Members of the Scottish Affairs Committee are in Dundee, which saw the loss of 157 jobs in August when games developer Real Time Worlds collapsed. | Members of the Scottish Affairs Committee are in Dundee, which saw the loss of 157 jobs in August when games developer Real Time Worlds collapsed. |
The committee chair, Ian Davidson MP, told BBC News that the group was on a "fact finding" mission. | The committee chair, Ian Davidson MP, told BBC News that the group was on a "fact finding" mission. |
"This is a preliminary visit to scope out what is going on; we will subsequently have hearings in the House of Commons to discuss the details of what we find out today," he said. | "This is a preliminary visit to scope out what is going on; we will subsequently have hearings in the House of Commons to discuss the details of what we find out today," he said. |
No break | No break |
In June, the games industry said it was "let down" by the government, following its decision not to award tax breaks. | In June, the games industry said it was "let down" by the government, following its decision not to award tax breaks. |
The premise of giving the sector 20% tax relief had been floated by the Labour government before the last election. | The premise of giving the sector 20% tax relief had been floated by the Labour government before the last election. |
But the Culture Minister, Ed Vaizey, told delegates at the video game Develop conference in Brighton that the case "had not been made". | But the Culture Minister, Ed Vaizey, told delegates at the video game Develop conference in Brighton that the case "had not been made". |
In early September, the video games industry trade body, Tiga, said Scotland had lost nearly a fifth of jobs in the sector - due to the collapse of Dundee-based developer Real Time Worlds - and it has been lobbying hard for tax breaks in games production. | |
But Mr Davidson said he was not convinced tax breaks would have saved Real Time Worlds, saying it could have had "a bad business model". | But Mr Davidson said he was not convinced tax breaks would have saved Real Time Worlds, saying it could have had "a bad business model". |
"During this time of public spending cuts, we need to make sure that anywhere we are spending money - or losing revenue - that this is justified," he said. | "During this time of public spending cuts, we need to make sure that anywhere we are spending money - or losing revenue - that this is justified," he said. |
"If there is to be a subsidy, we need to be clear on what this is and what it is designed to achieve," he added. | "If there is to be a subsidy, we need to be clear on what this is and what it is designed to achieve," he added. |
The group is also visiting Abertay University to discuss its new £5m project, which could create 30 new companies and 400 new jobs in the game sector. | The group is also visiting Abertay University to discuss its new £5m project, which could create 30 new companies and 400 new jobs in the game sector. |
Professor Bernard King, principal and vice-chancellor of the university, said he had high hopes for the project. | |
"We're developing this unique industry-focused approach, which is aimed specifically at creating new businesses and jobs. | "We're developing this unique industry-focused approach, which is aimed specifically at creating new businesses and jobs. |
"We believe that direct support like this can spark off fantastic new creative ventures, and we look forward to discussing these alternative financing models with the committee," he added. | "We believe that direct support like this can spark off fantastic new creative ventures, and we look forward to discussing these alternative financing models with the committee," he added. |
The £5m project is a joint venture between Westminster, the European Regional Development Fund and Abertay University. | The £5m project is a joint venture between Westminster, the European Regional Development Fund and Abertay University. |
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