Dundee City West MSP Joe FitzPatrick today responded to a reply he has received from the Treasury which shows that the UK Coalition's main plan to stimulate industry including computer games industry is based almost exclusively on lowering the rate of corporation tax.
Joe FitzPatrick said: "It plans to have the main rate reduced to 23% by 2014, which it claims will be the lowest rate in the G7 and will therefore, it claims, keep the UK internationally competitive for business.
"I'm certainly in favour of using varying of corporation tax to stimulate growth - in fact we want Scotland to have those very powers, similar to what Northern Ireland is to be granted, and if Scotland did have those powers we would certainly use them to provide incentives for business investment.
"We would look into setting up a Creative Content Fund to finance new development and enhance access to finance and marketing.
"But the problem with the answer I have received from the Treasury Minister is it continues to reject the idea of any specific targeted tax relief for the computer games industry alongside the ÔÇÿblunt instrument' measure of corporation tax.
"We should be doing both. Why can't the Treasury use all the levers at its disposal, continue lowering the corporation main rate but also introduce specific tax relief now? That would pay off with a greater tax take as the industry expands to fill the opportunities of the expanding market.
"The increasing number of countries offering specific tax support to their computer games sector is providing evidence that the increasing growth in the sector worldwide will be taken up by competitors like the United States of America, Canada and South Korea on the back of funding and support by their governments.
"What we're calling for is not about giving away tax money to the computer games industry, it is an investment decision and as such it makes clear sense. It would be highly targeted and would offer best value for money.
"TIGA, the games industry body, has been able to demonstrate with strong research and data that any specific tax relief given would more than pay for itself in a short time span. The Treasury would get back more than it invested.
"It's a measure that has had the apparent support of a number of leading figures within the three main UK parties. Tories and Lib Dems pledged to introduce it if elected but have reneged on their promise.
"This is not just an obscure financial wrangle. The creative industries and digital publishing sector employs up to 3,000 in Dundee and it is vital that we do not lose out on increasing our market share as the market expands ÔÇö or fail to benefit from creative work done in Dundee when new products are brought to the global market."