But industry can help change authorities’ views, says culture minister Hodge
The UK Government may be listening to the game industry’s call for a tax break – but culture minister Margaret Hodge has said authorities are ‘nervous’ about implementing any such measure.
Hodge, speaking at today’s UK Games Industry Westminster Media Forum, gave an overview of the way the Government is addressing the much-discussed issues facing games developers over skills and the price of development, but was reluctant to back tax breaks.
“I know this is hugely important to many of you. And you rightly make the comparison between the relief we give to film,” she said.
“I also know and understand what is happening worldwide,” Hodge added, pointing to Canada and France’s tax breaks.
But she added: “We’re nervous about these forms of tax relief. Because it costs us money. And you don’t want to get into an international Dutch auction.”
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There were also concerns as to whether such a fund is a good use of tax payer money, she said.
“We’re nervous because we need to think if it provides a sustainable way to provide continuity and growth for the industry.”
However the government is listening to the call from games developers, she said – and now it’s up to the industry to show that a tax break is the only way to save the industry from a ‘total market failure’.
She said: “We have succeeded in persuading our friends across government that we need to look at this – but we need to demonstrate that there is a genuine market failure here. Send us, the Department for Culture, Media and Sport, any evidence you have that would really build the case for a market failure, which we need if we are to be effective to persuade the treasury.”
I'm nervous about our government and the fact that they are looking to think about closing or maybe not, that stable door, with our nervous horse inside.
I'd be nervous about my vote at the next election. I'd also be nervous about my job remaining in the UK and moving.
I think the problem stems not just from the government but aspects of the games industry as well. There are far too many people who seem to be more interested in crawling under a rock, instead of actually accepting responsibility for the way the market has become. Last year the games industry produced just as much revenue as the film industry (perhaps more), yet still there are those who would rather see our country in the gutter than a be a major player.
Our country is at a turning point, and by God we need to fight for it.
Sounds like only in the event of UK developers and publishers facing actual 'market failure' will the government will be compelled to act.
Is this how they treated the film industry?
Now that several US States are offering tax rebates, how can Mrs Hodge not compete?
Maybe she has been too affected by all the rubbish about violent games her own advisor was paid several hundred thousand pounds to compile...
Compete or die...
Just the kind of response I had imagined coming from the Goverment. They can't see the wood from the trees! Of course they will only react once the industry is totally in the gutter!
We are dealing with a goverment with a total lack of vision!
So, this is the same government that recently gave banks £50bn to bail them out, at which point they promptly shut up shop and stopped lending?
Disgusting.
They're talking *******s as they'd rather spend that money on missiles and CCTV cameras.
Sod em.
Nice coverage very fast, just question how you stated some of the issues - remember I was sitting next to you when you were recording this piece!
Hello,
Happy to discuss if you think the story has been misrepresented; although I think the quote(s) speak for themselves. Hit the mail the author link to contact me. Although I don't remember anyone being sat directly next to me at the event this morning...
Having an industry in the country that exports worldwide at an extremely high profit, compared with its distribution costs, than most others... or not?
I know of a lot of people who would be willing (if not grudgingly) to take their skills overseas to a country which wants to take advantage.
The amount the government makes from sales and the reduced game imports would far outweigh the cost of the tax break.
I thought the whole idea behind a tax break was to keep the UK games industry strong and competitive, not a last resort to stop it falling apart completely.
Surely if a tax break meant an overall loss for governments, none would do it? This is rubbish.
Chicken or cheese? Well, it's up to devs to prove the need unless the industry collapses in which case the gov. will blame the devs for not providing the evidence in time. 'Tis a shame, it'll play out somehow. Fingers crossed.
