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Less than a mile from the headquarters of Rockstar North,‭ on Wednesday the‭ ‬Scottish‭ ‬Parliament‭ ‬Building‭ ‬saw a group of MPs debating one of the most important issues facing the‭ ‬UK games industry today.‭

The discussion‭ – ‬opened by‭ ‬Dundee West MSP Joe FitzPatrick‭ – ‬scrutinised the tax regime for the‭ ‬UK games industry‭; ‬an issue which has been gaining presence in recent months.‭

For over a year,‭ ‬game developers and publishers and related bodies have called for Brown’s government to introduce competitive‭ ‬tax incentives‭ ‬that would aid the nation’s games sector.‭ ‬Inaction in the matter,‭ ‬it is said,‭ ‬would diminish the productivity,‭ ‬global appeal,‭ ‬and opportunities for the‭ ‬UK business.‭

And though members present were clearly paying respect for the games industry,‭ ‬a cut in taxes was seen by many as not the ultimate solution.

FitzPatrick opened discussions by pledging that‭ “‬we must ensure that,‭ ‬in the years to come,‭ ‬the companies still exist and that the news broadcasts stories about the latest great game launch and awards,‭ ‬rather than the latest company closures.‭”

“In‭ ‬Canada,‭” ‬he said,‭ “‬the introduction of a‭ ‬25‭ ‬percent tax break on development has resulted in a flurry of development and increased the number of people who are employed in the games industry by‭ ‬40‭ ‬percent.‭ ‬It has also led to extra investment of‭ ‬$1.5‭ ‬billion in the Canadian economy.‭”

FitzPatrick,‭ ‬who represents the Dundee West constituency,‭ ‬spoke of the city being at‭ ‬the‭ ‬“forefront‭” ‬of game design.‭ ‬“In‭ ‬1983,‭ ‬Timex produced the Sinclair ZX Spectrum home computer in Dundee,‭ ‬and a generation in the city grew up learning the skills that would make‭ ‬Dundee a global leader.‭”

Listing‭ ‬Dundee’s most famous games,‭ ‬FitzPatrick cited‭ ‬Lemmings,‭ ‬Earthworm Jim,‭ ‬Rollercoaster Tycoon and‭ ‬Grand Theft Auto.‭ “‬Unfortunately,‭ ‬[Rockstar North‭] ‬is now based in‭ ‬Edinburgh,‭” ‬he joked,‭ “‬although it is still successfully working for the Scottish computer games industry.‭”

FitzPatrick said that‭ ‬Dundee is home to‭ ‬10‭ ‬percent of the‭ ‬UK's computer games companies and that an‭ ‬estimated‭ ‬3,500‭ ‬people are employed in computer games development and related industries in the‭ ‬Dundee area.

Pressing on the issue,‭ ‬he pointed out that‭ ‬Scottish and‭ ‬UK firms must pay tax on research and development,‭ ‬whereas countries such as‭ ‬Canada and‭ ‬France give rebates.‭ “[‬This‭] ‬gives their companies a competitive advantage over our companies.‭ ‬If our computer games industry is to compete on an equal footing with companies in other countries,‭ ‬it needs support during the development process,‭ ‬which can be lengthy.‭”

Marlyn Glen,‭ ‬Labour MP for‭ ‬North East Scotland,‭ ‬showed less enthusiasm in putting pressure on Brown’s cabinet.‭ ‬She said that the debate is‭ ‬“partly about taxation matters that are outwith the responsibility of the Scottish Parliament,‭ ‬but we should note that when the UK Prime Minister was Chancellor of the Exchequer,‭ ‬he announced a rise in the research and development tax credit in his‭ ‬2007‭ ‬budget.‭ ‬From last April,‭ ‬small to medium-sized companies have been able to deduct up to‭ ‬175‭ ‬per cent of qualifying expenditure on research and development activities in calculating their profits for tax purposes.‭”

She added that responsibility lies on‭ ‬companies to make use of their tax credit opportunities.‭ ‬“Joe FitzPatrick must acknowledge such facts,‭” ‬she said.