TIGA On Irish Tax Break Proposals

05 Oct 2009 at 13:27:17 by

It was revealed last week that the Irish government had been urged to consider offering tax breaks to videogame developers in a bid to attract Scottish developers to help the ailing economy.

The proposal saw Sir Gerry Robinson pitch the idea to the Global Irish Economic Forum in Dublin a couple of weeks ago.

Although the Irish government is yet to move on these proposals, it did send a clear message to UK developers. Companies such as Realtime Worlds are seriously considering the move if Ireland does provide a five year "tax holiday" and it wouldn't be a surprise if other developers followed suit, especially as the UK's talent is already being lost to countries that offer tax breaks, such as Canada.

Speaking to IncGamers, CEO Richard Wilson of TIGA said that it was a shame and that the UK government needs to move to secure the talented and respected industry that thrives in the UK.

"South of the Channel France has tax breaks, the Irish now are looking to offer tax incentives and it just goes to show that the UK is completely out of tune," said Wilson.

Ireland has seen the potential to utilise one of the only stable and growing industries to help it out of its economic crisis, and attracting Scotland's creative industries is a move that will benefit the country's economy in the long run.

"If Ireland can introduce a tax break with their economy the way it is, then it confirms that there is nothing stopping the UK introducing a tax break," said Wilson.

But it isn't just the UK government which has come under criticism, but also the Scottish parliament ministers.

"Scottish parliamentarians shouldn't be sitting on their hands, they should be lobbying Westminster and the UK government which will help Scotland and the UK."

Either way, the industry which turns over £20 million GBP (figures provided by Scottish Enterprise) and employs around 700 people in Scotland alone will be the first target for the Irish.

We know TIGA has been working tirelessly to secure similar tax breaks, and has been lobbying government, most recently talking at the Labour Party Conference in a fringe event organised by the National Endowment for Science, Technology and the Arts.

"Video game development is an industry of the future. It is export oriented, research intensive, inherently creative and the UK is a world leader. The sector merits investment by Gordon Brown's national investment corporation," commented Wilson after an announcement from Gordon Brown that £1 billion GBP would be invested to provide financial growth to manufacturing and other businesses.

We've put a request in to speak to the Scottish Parliament and will update you when we get a response.

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