MSP WELCOMES TOP BROADCASTERS SUPPORT FOR SCOTTISH GAMES INDUSTRY

MSP WELCOMES TOP BROADCASTERS SUPPORT FOR SCOTTISH GAMES INDUSTRY

SECTOR CAN PROVIDE HUGE JOBS GROWTH FOR SCOTTISH ECONOMY

Dundee West SNP MSP Joe FitzPatrick has welcomed comments made by Stuart
Cosgrove, Channel 4's director of nations and regions and the chairman of
the digital industries advisory group to the Scottish Government,
supporting the need for tax incentives so that Scotland can maintain its
top-ranking status in a field in which it excels.

Mr FitzPatrick has been critical of the failure of the UK Chancellor to
bring forward tax incentives for the industry in his latest pre-Budget
Report. Tax breaks could deliver 700 new jobs in Scotland's Games
industry.

In an article on TimesOnLine sub headlined "With big ambitions and tax
incentives Scotland must maintain its top-ranking status in a field in
which it excels", Mr Cosgrove highlights the international gap that has
developed because of a lack of incentives. He wrote:

"Since 1975, Britain has had the third-largest video games industry in the
world, behind the United States and Japan. But tax incentives in other
countries have seen the UK slip down the rankings behind Canada and South
Korea, and possibly France. Richard Wilson, CEO of the games industry body
Tiga claims that tax incentives would be a net benefit to Britain. "Our
proposals would cost the Treasury £192m over a five-year period ... and
generate or safeguard £415m in tax receipts."

"Last week, the UK government rejected tax benefits for animation and
computer games. The Scottish government has yet to respond but is aware of
the advantages to Scotland. Although taxation is notoriously tricky and
highly sensitive with an election approaching, effective fiscal
stimulation of the games sector in Scotland is achievable."

Mr FitzPatrick, who has campaigned for Scotland and Dundee's computer
games industry for upfront tax breaks for Research and Development, said:

"Stuart Cosgrove's intervention is welcome. His comments not only show how
the games industry is vitally important to Scotland's economy but also
that it offers the country a means to create jobs and build up an even
better reputation than we have now.

"Scotland's Games industry is a key growth area for our future. We are
world leaders in the games industry but our position and our jobs are
under threat if tax incentives are not brought forward. Even the proposed
cut in tax on profits from patents is of little use as games do not often
get patents.
"Recent UK announcements of investment in life sciences and computer games
are welcome, but they look increasingly like they have been timed to hide
Labour's failure to fix the tax system to favour these industries as soon
as possible."