UK game makers urge action as Irish launch €10m start-up fund

A FUND launched by the Irish government to attract computer games developers to the country is threatening the Scottish industry, the UK trade body has warned.

Richard Bruton, the Irish jobs minister, yesterday launched a €10 million (£8.8m) international start-up fund to encourage entrepreneurs to launch companies in the republic.

The fund will invest between €200,000 and €500,000 in businesses in return for an equity stake for the state.

Tiga, the trade body for the British computer games industry, warned that the Irish fund’s geographical targets will include the UK and that it will focus on sectors including the internet, video games and cloud computing.

News of the fund and its threat to the UK industry comes less than a week after Tiga called on the Scottish Government to set up a “creative content fund” that could invest up to £100,000 in games developers.

Richard Wilson, Tiga’s chief executive, said: “The Irish fund has parallels with our creative content fund, which we proposed to the Scottish Government earlier this week.

“The Irish government’s scheme is another example of the intense competition that exists between governments to attract high-technology businesses and entrepreneurs to their countries.

“The Irish development confirms the urgent need for Scottish and UK policymakers to create a favourable environment for video games development.”

He said Tiga would be meeting with the Scottish Government to discuss its proposals.

Wilson branded the UK government as “short-sighted” for not introduced tax relief for computer games developers.

The previous Labour government at Westminster had announced plans to introduce such as scheme but the idea was dropped by the coalition following 2010’s general election.