OPINION: Canada is draining games investment away from the UK
A REPORT for the Entertainment Software Association of Canada revealed three important conclusions: that Canada was successfully attracting investment and jobs away from the UK; that the Canadian games industry was enjoying significant growth fuelled in part by tax credits; and that access to skilled talent was a top industry concern.
The report, Canada’s Entertainment Software Industry in 2011 notes that:
“ . . . Canada itself has been notably successful in attracting investment and skilled personnel from jurisdictions like the United Kingdom . . . ”
The Canadian games industry is expected to grow by 17% over the next two years, assisted in part from tax credits on labour ranging from 17.5% to 37.5% of expenses in Ontario, Quebec and British Columbia;
42% of respondents to the report’s survey are concerned about the lack of talented personnel available to work in the Canadian video games sector.
This report confirms that Canada is successfully draining investment and highly skilled developers away from the UK. Canada’s tax credits play a key part in this process. The loser is not simply the UK video games industry, but the entire UK economy.
Interestingly, the Canadian games industry is concerned about an insufficient supply of skilled personnel, with more than two-fifths of respondents worried about a talent gap. This is not unusual. A recent report on the Australian video games sector revealed that 83% of respondents believe that the sector suffers from skill shortages. Video game development requires highly skilled personnel, for whom there is naturally competition for employment.
The UK game development sector employs a highly skilled and creative workforce. While we must continue to enhance the provision of games education and training, the critical factors that the UK needs to get right are the tax environment and access to finance. The introduction of Games Tax Relief and a Creative Content Fund, together with improvements to R&D Tax Credits, will power the UK games industry ahead.”
DR RICHARD WILSON is chief executive of video games trade association, TIGA
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