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I am pleased to see that my colleagues have been calling for government action on the video games industry. Marlyn Glen is calling for an urgent meeting with Scottish Employment Minister, Jim Mather MSP. I was also pleased to see that my Labour colleague are calling for action from the UK Government, please see the news release reproduced underneath.
LABOUR URGE MOORE TO SEEK URGENT MEETING WITH REALTIME
- MOORE MUST VISIT COMPANY TO LEARN IMPORTANCE OF LABOUR’S TAX RELIEF
- LABOUR HAVE CONSISTENTLY WARNED DANGERS OF REMOVING SUPPORT FOR INDUSTRY
- CONCERN AT INACTION FROM UK AND SCOTTISH GOVERNMENT
Following news that computer games company Realtime Worlds has gone into administration putting hundreds of jobs at risk, Scottish Labour have today called on the Secretary of State for Scotland to urgently meet with the Dundee-based company to learn the importance of Labour’s tax relief scheme for the industry.
The tax relief was scrapped in the Chancellor's Budget without industry consultation or discussion, despite it being vital to keep thousands of jobs in Dundee. The industry is competing with significant incentives from Canada who are seeking companies to relocate jobs there.
Labour has previously revealed that the Scottish Secretary has had no discussions with the Treasury regarding the decision to scrap the tax relief. (1)
On 22 July 2010 the Scottish Affairs Select Committee announced an inquiry to examine the potential impact on Scotland’s video games industry following the Chancellor’s decision to abolish tax relief for this sector. (2)
Scottish Labour Leader Iain Gray MSP said:
"I have repeatedly pressed Alex Salmond to follow the UK Government's lead urging him to consider what support the Scottish Government can offer the industry, but unfortunately my calls have fallen on deaf ears.
"This latest news is not just devastating for Dundee, but for the future of the computer games industry in Scotland.
"I fear the fate of Realtime could just be the beginning unless both the SNP and coalition government take action and quick."
Jim Murphy, Labour's Shadow Secretary of State for Scotland, said:
"This underlines the need to support the computer games industry better.
"I cannot understand why the Government has scrapped the tax relief scheme Labour announced in March.
"We need Dundee and the whole of Scotland to be a world leader in computer games. The industry sustains thousands of high-skilled jobs that we simply cannot afford to lose.
"I am today calling on the government to reverse the decision to scrap the tax relief.
"If Michael Moore doesn't understand the importance of this he should visit Dundee and learn why the manufactures desperately need the very support he is taking away."
Jim McGovern, Labour MP for Dundee West and member of the Scottish Affairs Select Committee said:
”From day one Labour have been deeply critical of the Coalition Government’s decision to scrap the tax relief scheme introduced by Labour and have warned the consequences could be severe. That is why I pressed for Scottish Affairs Committee to conduct its first inquiry into the impact of the Government’s decision back in July. The urgency and importance of that inquiry has now only intensified.
"Having raised this issue at Prime Ministers Questions, Scottish Questions and having even met with the Scottish Secretary it is deeply worrying indeed that nobody in the coalition has taken heed of Labour’s warnings.
”It is clear the Chancellor is interested in only one thing – cuts – regardless of the cost. The Scottish Secretary cannot afford to stand idly by. He must urgently meet with Realtime so he can see for himself just how important it is to support the computer games industry.
”Throughout the world countries are laying out the red carpet for the computer games industry, but unfortunately here in the UK the Tory/Lib Dem coalition are attempting to pull the rug from under their feet.”
Local Labour MSP Marilyn Glen added:
"This is enormously concerning news.
”The Scottish Government must step-in and do whatever it can to support this pioneering company and help protect the jobs of the 300 people who work there.
"It is particularly concerning that this development comes just a matter of weeks after the new coalition government announced that they were taking away the tax break announced by Labour for Dundee's games industry last year.”
ENDS
Notes to editors:
(1) Ann McKechin: To ask the Secretary of State for Scotland what correspondence he had with the Chancellor of the Exchequer on (a) budgetary matters and (b) Government support for the computer and video games industry in advance of the Budget. [6333]
Michael Moore:There has been no formal exchange of correspondence with the Chancellor of the Exchequer on the computer and video games industry but I and my officials had discussions with Treasury counterparts on a range of issues ahead of the Budget.
I will speak with both the Secretary of State for Culture, Olympics, Media and Sport and representatives from the industry in the near future, to discuss how the cuts to corporation tax to 24%, the rise to the employer national insurance threshold and other measures, announced by the Chancellor of the Exchequer in his emergency Budget, will stimulate further growth and expansion of this sector.
Ann McKechin: To ask the Secretary of State for Scotland what meetings (a) he and (b) officials in his Department had with their Treasury counterparts to discuss (i) the Budget and (ii) support for the computer and video games industry before the Budget Statement of 22 June 2010. [6361]
Michael Moore:There was no specific meeting about the computer and video games industry. However, I and my officials held discussions with Treasury counterparts on a range of issues ahead of the Budget.
I will speak with both the Secretary of State for Culture, Olympics, Media and Sport and representatives from the industry in the near future, to discuss how the cuts to corporation tax to 24%, the rise to the employer national insurance threshold and other measures, announced by the Chancellor of the Exchequer in his emergency Budget, will stimulate further growth and expansion of this sector.
(2) The Scottish Affairs Select Committee inquiry announced on 22 July 2010 will “examine the potential impact on Scotland’s video games industry of the recent announcement by the Chancellor of the Exchequer to abolish tax relief for this sector, and to examine alternative financial incentives for the industry.”
For the full terms of reference of the inquiry see: http://www.parliament.uk/business/committees/committees-a-z/commons-select/scottish-affairs-committee/inquiries/the-video-games-industry-in-scotland/
LABOUR URGE MOORE TO SEEK URGENT MEETING WITH REALTIME
- MOORE MUST VISIT COMPANY TO LEARN IMPORTANCE OF LABOUR’S TAX RELIEF
- LABOUR HAVE CONSISTENTLY WARNED DANGERS OF REMOVING SUPPORT FOR INDUSTRY
- CONCERN AT INACTION FROM UK AND SCOTTISH GOVERNMENT
Following news that computer games company Realtime Worlds has gone into administration putting hundreds of jobs at risk, Scottish Labour have today called on the Secretary of State for Scotland to urgently meet with the Dundee-based company to learn the importance of Labour’s tax relief scheme for the industry.
The tax relief was scrapped in the Chancellor's Budget without industry consultation or discussion, despite it being vital to keep thousands of jobs in Dundee. The industry is competing with significant incentives from Canada who are seeking companies to relocate jobs there.
Labour has previously revealed that the Scottish Secretary has had no discussions with the Treasury regarding the decision to scrap the tax relief. (1)
On 22 July 2010 the Scottish Affairs Select Committee announced an inquiry to examine the potential impact on Scotland’s video games industry following the Chancellor’s decision to abolish tax relief for this sector. (2)
Scottish Labour Leader Iain Gray MSP said:
"I have repeatedly pressed Alex Salmond to follow the UK Government's lead urging him to consider what support the Scottish Government can offer the industry, but unfortunately my calls have fallen on deaf ears.
"This latest news is not just devastating for Dundee, but for the future of the computer games industry in Scotland.
"I fear the fate of Realtime could just be the beginning unless both the SNP and coalition government take action and quick."
Jim Murphy, Labour's Shadow Secretary of State for Scotland, said:
"This underlines the need to support the computer games industry better.
"I cannot understand why the Government has scrapped the tax relief scheme Labour announced in March.
"We need Dundee and the whole of Scotland to be a world leader in computer games. The industry sustains thousands of high-skilled jobs that we simply cannot afford to lose.
"I am today calling on the government to reverse the decision to scrap the tax relief.
"If Michael Moore doesn't understand the importance of this he should visit Dundee and learn why the manufactures desperately need the very support he is taking away."
Jim McGovern, Labour MP for Dundee West and member of the Scottish Affairs Select Committee said:
”From day one Labour have been deeply critical of the Coalition Government’s decision to scrap the tax relief scheme introduced by Labour and have warned the consequences could be severe. That is why I pressed for Scottish Affairs Committee to conduct its first inquiry into the impact of the Government’s decision back in July. The urgency and importance of that inquiry has now only intensified.
"Having raised this issue at Prime Ministers Questions, Scottish Questions and having even met with the Scottish Secretary it is deeply worrying indeed that nobody in the coalition has taken heed of Labour’s warnings.
”It is clear the Chancellor is interested in only one thing – cuts – regardless of the cost. The Scottish Secretary cannot afford to stand idly by. He must urgently meet with Realtime so he can see for himself just how important it is to support the computer games industry.
”Throughout the world countries are laying out the red carpet for the computer games industry, but unfortunately here in the UK the Tory/Lib Dem coalition are attempting to pull the rug from under their feet.”
Local Labour MSP Marilyn Glen added:
"This is enormously concerning news.
”The Scottish Government must step-in and do whatever it can to support this pioneering company and help protect the jobs of the 300 people who work there.
"It is particularly concerning that this development comes just a matter of weeks after the new coalition government announced that they were taking away the tax break announced by Labour for Dundee's games industry last year.”
ENDS
Notes to editors:
(1) Ann McKechin: To ask the Secretary of State for Scotland what correspondence he had with the Chancellor of the Exchequer on (a) budgetary matters and (b) Government support for the computer and video games industry in advance of the Budget. [6333]
Michael Moore:There has been no formal exchange of correspondence with the Chancellor of the Exchequer on the computer and video games industry but I and my officials had discussions with Treasury counterparts on a range of issues ahead of the Budget.
I will speak with both the Secretary of State for Culture, Olympics, Media and Sport and representatives from the industry in the near future, to discuss how the cuts to corporation tax to 24%, the rise to the employer national insurance threshold and other measures, announced by the Chancellor of the Exchequer in his emergency Budget, will stimulate further growth and expansion of this sector.
Ann McKechin: To ask the Secretary of State for Scotland what meetings (a) he and (b) officials in his Department had with their Treasury counterparts to discuss (i) the Budget and (ii) support for the computer and video games industry before the Budget Statement of 22 June 2010. [6361]
Michael Moore:There was no specific meeting about the computer and video games industry. However, I and my officials held discussions with Treasury counterparts on a range of issues ahead of the Budget.
I will speak with both the Secretary of State for Culture, Olympics, Media and Sport and representatives from the industry in the near future, to discuss how the cuts to corporation tax to 24%, the rise to the employer national insurance threshold and other measures, announced by the Chancellor of the Exchequer in his emergency Budget, will stimulate further growth and expansion of this sector.
(2) The Scottish Affairs Select Committee inquiry announced on 22 July 2010 will “examine the potential impact on Scotland’s video games industry of the recent announcement by the Chancellor of the Exchequer to abolish tax relief for this sector, and to examine alternative financial incentives for the industry.”
For the full terms of reference of the inquiry see: http://www.parliament.uk/business/committees/committees-a-z/commons-select/scottish-affairs-committee/inquiries/the-video-games-industry-in-scotland/
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