'If shoe fits for film industry why does Government argue it does not for games?'
Prime Minister David Cameron today said the UK would continue to offer a tax break for film - much to the chagrin of Tiga.
The trade association this morning said it was 'extraordinary' that the Government continues to subsidise UK film, but not games.
Earlier in the year, outgoing Labour authorities promised a tax break for games development - but the new coalition Conservative-LibDem government soon said that wasn't an option, and was 'poorly targeted'.
During today's Prime Minister's Questions, Cameron said he was committed to Film Tax Credits after a question from the Conservative MP for Watford, Richard Harrington, who asked about the movie subsidies in light of Warner Bros' recent purchase of Leavesden Studios in Hertfordshire.
“Whilst, we are pleased that our friends in the film industry will continue to receive sector specific support, we find it extraordinary that the Government continues to oppose introducing Games Tax Relief," said Richard Wilson, TIGA CEO.
"Richard Harrington MP made clear in his question that a key contributing factor to Warner Brothers’ decision to continue to invest in the UK, and create 600 more jobs in Watford, was the film tax credit.
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"If the shoe fits for the film industry why does the Government continue to argue it does not for the video games industry?”
What hurts about the debate on this is the well researched figures provided to the government by TIGA (415 million returns?) are always criticised in parliament as misguided.
Hansard 8 Nov 2010...
"but we do not accept the validity of that analysis because we feel that some of the assumptions underpinning those estimates are erroneous"
Yet I got a reply from a petition I signed about the digital economy act disconnection policy this week and it stated an entirely bogus figure produced by big media of 400 or so million pounds of lost sales due to piracy (this figure turned out to be made up by a BPI exec). So it turns out the Government only fact checks figures when it suits their agenda. We were never going to get tax breaks.
I guess the games industry just can't line as many pockets as big media can.
I was talking with someone at DCMS a few weeks back and they said their real fear for tax breaks was that it would basically subsidise IP creation for big American publishers who would stop investing in the UK the minute the government withdrew any temporary tax relief.
The games industry is a lot more than a bunch of IP - it is companies, employment, technical skills, creative nous, entrepeneurial spirit, and synergy with other industry like movies. Who owns the IP is only one factor, and varies a lot according to the individual deal, and right now, with so many indie devs making games, it arguably matters less than before. To cite that as a reason not to have tax breaks as in the film industry sounds like a weak excuse at best.
The government is at the same time being short sighted and avoiding unfairness. it doesn't want to be seen favoring a specific industry when most could do with tax breaks. providing tax breaks now to an industry seen as not providing essential services would be unpopular. perhaps when the recession ends we may see a change of tact.
