Computer Games
The final item of business is a members' business debate on motion S3M-3311, in the name of Joe FitzPatrick, on support for computer games development.
Motion debated,
That the Parliament notes with concern the comments of Colin Macdonald, Studio Manager for Dundee-based computer games developer Realtime Worlds, who recently expressed concern for the future of the industry; recognises that despite the current economic situation the computer games industry is continuing to grow, however that in terms of games development the United Kingdom is falling behind; notes that UK firms must pay tax on research and development, while in countries such as Canada and France rebates are given; further notes the importance to the economy of Dundee and Scotland of computer games developers who have produced award-winning titles such as Crackdown, which recently sold over 1.5 million units, and believes that games development in Scotland will suffer under the current tax regime.
I am pleased to introduce this debate on support for the computer games industry in Scotland. Members will be used to hearing me extol the virtues of Dundee whatever the topic of debate, and today will be no different. However, in the case of the computer games industry, there is no need for me to embellish Dundee's role at the centre of the United Kingdom market. Dundee is a world player when it comes to the computer games industry.
From the first days of computer game technology, Dundee has been at the forefront. 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. One of the early successes of the Dundee computer game scene was the worldwide hit Lemmings. There were also million-plus selling titles such as Earthworm Jim and RollerCoaster Tycoon and, of course, the huge hit Grand Theft Auto, which was created in Dundee by Rockstar North. Unfortunately, the company is now based in Edinburgh, although it is still successfully working for the Scottish computer games industry.
Dundee still produces world-class games. Last year, we had the award-winning Crackdown, which was developed by Realtime Worlds and sold more than 1.5 million copies globally. The games industry in the UK employs 30,000 people and contributes £1 billion to gross domestic product. Dundee is home to 10 per cent of the UK's computer games companies. It is estimated that about 3,500 people are employed in computer games development and related industries in the Dundee area.
Dundee also leads the way on education and training. The University of Abertay Dundee has been instrumental in supporting the growth of computer games technology, and its graduates have set up companies in the city, throughout the UK and in other parts of the globe. Abertay had the UK's first undergraduate degree in computer games technology and Scotland has three quarters of the undergraduate courses that are currently available in the UK.
Despite the economic downturn, the worldwide industry is booming, with computer games sales last year overtaking DVD sales for the first time, with £22 billion of global sales. However, this is not a time to rest on our laurels. Yes, Dundee and Scotland are doing well in a booming computer games market, but 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. Timex has long since closed its doors, and last week the loss of another 250 jobs at NCR in Dundee was a stark lesson that a once-successful business can quickly become less viable in changing market conditions.
We are seeing the first signs that problems might lie ahead for the computer games industry. The UK is falling behind on games development, and the countries that are overtaking us are those that have given tax breaks for games development. Scottish and UK firms must pay tax on research and development, whereas countries such as Canada and France give rebates, which gives their companies a competitive advantage over our companies. Although in some cases it might be possible to claim tax credits here, that applies only at the end of the development process. 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.
Colin Macdonald, the studio manager for Dundee-based computer games developer Realtime Worlds, recently expressed concern that, unless the playing field is levelled and UK-based companies receive a similar tax break, such as a VAT exemption for games research and development, the industry will suffer. Realtime Worlds is not alone in that view. The University of Abertay Dundee, the Scottish Chambers of Commerce and the computer games trade body Tiga all say the same thing: unless the playing field is levelled, we could lose out in Scotland.
Top games such as Crackdown take about five years to develop. When tax breaks of up 25 per cent are available in other countries, Scotland and the UK are simply not as competitive, which is why the UK is falling behind in the development of new games. The industry is calling for a change to the tax regime, as there is firm evidence that easing the tax burden on games development creates jobs and grows the industry. In Canada, the introduction of a 25 per cent 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 per cent. It has also led to extra investment of $1.5 billion in the Canadian economy. French companies were granted a 20 per cent tax break in 2007, which has proven an aggressive stimulant for the country's computer games industry. That competitive advantage has given new-found confidence to French game developers. The Scottish Chambers of Commerce and Tiga have stated that if we received a similar tax break to bring us back into line with our main competitors, it could create an extra 11,500 jobs throughout the UK and safeguard thousands more jobs in the industry.
At the end of the day, companies will go where prices are cheaper, even if development in the UK is of a higher quality. We are already hearing of Canadian headhunters targeting the wealth of talent in the Scottish computer games industry. Dundee generates 15 per cent of the UK's total computer games turnover—some £150 million annually—and would therefore feel more acutely any downturn caused by a loss of competitiveness.
Holyrood does not yet have tax powers to support the industry directly, but there is much that we can do in the chamber. I welcome the steps that the Scottish Government has taken to support the industry, most notably through the funding of the University of Abertay Dundee Skillset media academy, which will specialise in computer games education and expand the university's expertise. That new academy recognises Dundee's importance as a centre for computer games development and will provide a skilled workforce to ensure that Dundee continues to lead the field.
Dundee used to make Spectrum computers and NCR used to employ thousands in the city. With cross-party support in the chamber and at Westminster, we can ensure that it will never be the case that we have to say that we used to have a computer games industry.
I congratulate Joe FitzPatrick on securing this debate and on organising the display of games this afternoon. I am particularly interested in the subject because the computer games industry is important to our native Dundee. Dundee has an enviable reputation for the outstanding quality of its games development. Its most recent accolade was a £3 million investment from the Scottish Government to assist the University of Abertay Dundee to create the first UK centre of excellence for computer games education. There are 94 games courses in the UK, only four of which are accredited, and two of those are in Dundee. The principal of the University of Abertay Dundee, Bernard King, has said that the potential market value of the global interactive media sector to Scotland could be as much as $68 billion by 2012, and he has made the point that success depends on continuous production of new ideas and ever-improving skill levels to drive achievements.
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. The onus is on companies to make use of those opportunities. Joe FitzPatrick must acknowledge such facts, and that the French tax credit system is also tied to research and development.
Our debate should focus on how the Scottish Parliament, with its responsibilities, can help the computer games industry in Scotland. As we all know, computers have made their way into every sector of work, life and leisure to the extent that the British Academy of Film and Television Arts recognises in its awards excellence not just in traditional media such as film and television, but in games.
Creative Scotland has been given responsibility for the 13 creative industries to promote abilities, including those in interactive leisure software and computer services. Enterprise agencies are also charged with maximising economic opportunities on behalf of the creative industries. In seeking to help the Scottish computer games industry, what significant role does the minister see for his department working with creative Scotland and the enterprise agencies in promoting that industry as it continues to develop as a leading sector in the entertainment market?
The minister will be aware that the National Endowment for Science, Technology and the Arts—NESTA—has called on the Scottish Government to provide creative Scotland with the power to assist the creative industries beyond the provision of the business gateway services that are currently on offer, important though those services are in their own right. NESTA's communications manager for Scotland, Graeme Downie, has already stated that
"Finding new sectors to drive economic growth is now essential … Targeted government intervention in sectors with a high growth potential is vital."
NESTA has published proposals that suggest what a sector-specific support policy would entail. The proposals include: increasing student placements in the work environment, such as the dare to be digital initiative, which is sponsored by the University of Abertay Dundee and which allows students to demonstrate their talents to potential employers; setting up a games education fund to fund placements for lecturers, allowing them to gain experience in video games studios, and to finance research fellowships; and introducing a kite mark for computer games courses, which would link the financing of a particular course to its relevance to the industry sector. NESTA also sees Abertay's centre of excellence for computer games education as a possible opportunity to develop a new strategy on the role of educational games in schools.
I ask the minister to inform us, in summing up, how his department intends to respond to those proposals from NESTA and, thereby, to support the Scottish computer games industry, which is undoubtedly one of the potentially strong growth sectors in our economy.
I congratulate Joe FitzPatrick on securing the debate on a topic that is dear to the area that he represents, and to the area that I represent. Rockstar North is certainly Dundee's loss and Edinburgh's gain. Joe FitzPatrick's speech was good; he raised a number of interesting points, such as that more computer games have been sold than DVDs over the past year. He was quite right to highlight some of the very impressive work that is being done at the University of Abertay and, in particular, in the school of computing and creative technologies. I was disappointed that, because I was in committee all morning and in the chamber all afternoon, I did not get a chance to enjoy the games demonstration in Parliament earlier today.
The games industry is important to Scotland and to the UK as a whole. There are particularly strong studio clusters in Dundee and Edinburgh. Joe FitzPatrick rightly stated that about 30,000 people in the UK are employed in the industry. It is worth saying that 10,000 of those jobs are in what is called the studio sector, which means that they are extremely well-paid and highly skilled jobs. They are good jobs and we want to keep them in Scotland and to try to bring even more here.
Joe FitzPatrick talked about the size of the industry in terms of gross domestic product, but it is also worth noting that it is worth more than $200 million to the UK's balance of trade—it allows money to flow into the UK. Even in tough times, it has the potential for growth. Between 2006 and 2008, the UK games development industry grew by 8 per cent. Traditionally, we were the third-largest producer in the world. We fell to fourth, but are apparently back up to third. However, I am told that we are in danger of falling down to fifth, so we certainly cannot rest on our laurels.
Another critical point, which the convener of the Economy, Energy and Tourism Committee made recently when he reported back to the committee on his visit to the industry in Dundee—I will try not to steal his thunder—is that gaming is not just about playing games; a lot of high-powered mathematics and physics are involved in the technology. More important, there are applications for it outside the games industry—perhaps in the medical industry. We are talking about the cutting edge of computer technology.
The industry faces several challenges, some of which have been outlined. I commend to everybody the recent report that was commissioned by NESTA but produced by Games Investor Consulting. The report, which was produced in December 2008, is a thorough 50-page analysis of the position in the UK. It compared us to our main competitors and other countries in Europe and outlined the main challenges that we face, which are: increasing the flow of original and new ideas; exploiting the massive potential of online gaming; exploiting synergies between converging media; protecting UK creative jobs; increasing the calibre of our graduates, which some members have mentioned; increasing the diversity in development teams; and increasing support from public funds.
I would add to that that we must ensure that a positive perception of games is promoted, instead of the negative perception that some games might have attracted. Gaming is extremely popular, but only 3 per cent of games sold have a mature or 18 rating and more than 50 per cent of them are suitable for the under-7s. It is important for us to emphasise the positive aspects of gaming.
I will finish on the point that Mr FitzPatrick made in relation to tax. Of course, tax is important, but the NESTA report pointed out that tax is not the be-all and end-all. It said that the Canadians have had success, which he was right to highlight. However the French, to whom he also referred, have had a disastrous time with their tax policy. The report says that
"Following an exodus of studios to Quebec, France's studio sector has remained stagnant, despite such large-scale injections of capital. It is too early to assess the impact of a new national games development tax credit, but it seems unlikely that the French development sector will become a global leader in the near future."
Tax is important, but all the issues in the report to which I referred need to be addressed equally.
I am pleased to participate in the debate, which I congratulate Joe FitzPatrick on securing. The games industry is important to Scotland. It has huge potential, which we should all work together to deliver.
My experience of gaming is largely playing Scrabble on Facebook. As a good Liberal Democrat, I concentrate more on games such as Railroad Tycoon than on Grand Theft Auto. Nonetheless, I am interested in the technology that is being developed. As the Economy, Energy and Tourism Committee's convener, I was pleased to have the opportunity to visit the gaming industry in Dundee. The University of Abertay Dundee is at the forefront of gaming education and research—it is hard to believe, but the gaming industry involves quite a lot of research.
Computer gaming is not just about young people sitting around playing games and wasting their time. As Gavin Brown said, the industry is at the cutting edge of computer software development and is highly mathematics and physics based. A game designer must know how objects bounce to work out how characters move and what happens to them if they are hit by something. Realism is an important part of good-quality gaming.
While in Dundee, I saw a fantastic computer animation based on a pop-up book. As the pages opened, the characters moved and bounced as they would if a paper pop-up book were opened. It was magnificently done. Game designers must understand the underlying maths—the algorithms, about which I keep being told. I am sure that the colleague from Abertay university who is in the public gallery will be pleased that I remembered that word.
Computer games have practical applications, too. For example, I saw and participated in police firearms training in which instant decisions must be made about whether people in scenes in computer games are likely to cause a threat with a firearm. That is helpful training.
I also visited Realtime Worlds, which is an incredible company. Joe FitzPatrick was right to refer to the game Crackdown, but that game faced issues. The company obtained most of the funding from abroad—from Microsoft—which limited its ability to make the game available on other platforms. Venture capital was also obtained from overseas. The funding situation means that much of the profit disappears from the United Kingdom. As Crackdown is a traditional boxed game, the company loses money to publishers—it is strange that the United Kingdom has no publishers, despite being at the forefront of computer game development—as well as to distributors and to shops. Through online gaming—which the company is developing—a game can be available directly, more money can be made and people can purchase regular subscriptions for upgrades and extras, which increase profitability.
Games take a long time and are expensive to develop—some are five years in the making, so companies need money up front. We must ensure that they obtain it. Yesterday, NESTA published a report that contains several constructive suggestions on how to help the Scottish gaming industry. It is clear that we need to consider how we support research and development in the industry. The industry is not traditional and the up-front funding that it needs for research and development is not necessarily traditional: innovative support is needed for an innovative industry. Gavin Brown was rather disparaging of the French, but they have managed to develop a cultural test that allows them to get round European Union state-aid rules and to develop their gaming industry. That is important.
The next phase is developing games for smaller platforms such as mobile phones and the iPhone, which can be cheaper and quicker to develop. Many smaller organisations in and around Dundee and elsewhere in Scotland are developing games for such platforms.
Let us all work together to support the gaming industry. We should not fight with the United Kingdom Government on that; we need to work with it to get the best for Scotland's gaming industry.
I, too, congratulate my friend Joe FitzPatrick on securing the debate, which is about an important but often overlooked part of our economy.
It is interesting to reflect on the fact that in the industrial city of Dundee the old has passed away to be replaced by things that our grandparents would have been unable to imagine.
As we heard from Joe FitzPatrick, Dundee and Scotland have an impressive list of global names in the industry such as Rockstar North and Realtime Worlds, with the latter employing 250 people in Dundee. However, I would like to focus on smaller businesses that exist throughout Scotland and to remind members that every new business starts as a small business.
Chris van der Kuyl, who is well known in the industry, started his first company, VIS Entertainment, out of his bedroom in Dundee. He now heads up a small company, 4J Studios, which has achieved worldwide success with the Elder Scrolls series. Chris Sawyer is another name in the industry—he works largely independently but has produced million-selling titles such as RollerCoaster Tycoon and Transport Tycoon. Those examples show that individuals and small companies can have a global market impact. However, in the past both developers have reported problems in financing development of their new titles. If they have problems, surely the same is true of plenty of others.
The dare to be digital competition that is run by the University of Abertay Dundee is a good example of what can be done to support people who are starting in the computer game business. The competition has been run each year since 1999 and challenges teams of five or six recent graduates to work together to produce a functional game prototype in 10 weeks, which is judged on the basis of its creativity, market potential and use of new technology. The university recognises how difficult it can be for graduates to enter the market, so the dare to be digital competition helps them to gain real-life working experience and includes the provision of mentoring support from games companies. That creates a link between students and potential employers that helps to ensure that the next generations hit the ground running.
This afternoon I had the opportunity, along with colleagues, to try out last year's winner, Ragnarawk. For the benefit of those who were not present, Ragnarawk is a role-playing game that enables one to explore a music-themed world. The music in the game is not, I hasten to add, the kind of music that I used to play, but if people play the guitar they are fine and can chase folk around the screen.
Gavin Brown made the point that the technology has applications apart from games. Those applications are not limited to health—I suggest that there are enormous educational opportunities to be derived from software that has such real-time applications. The benefits will extend well beyond games.
It has long been understood that we must support the UK film industry to ensure its growth and success and to ensure that projects are not stalled because of lack of funding. Each year, the film industry contributes £1 billion to the UK's gross domestic product—roughly the same as the games industry. However, unlike the games industry, the film industry receives £100 million in tax breaks every year. If we can see the links between tax breaks and a growing market for films, why cannot we see them for computer games? A VAT exemption for games development for both large and small firms would allow the industry to flourish and ensure its continued success and growth, even in these difficult economic times.
This has been an interesting debate, in which I have learned quite a lot. The last time that I played a computer game was in the Traverse Theatre bar in 1975, when I had to blast little blobs off a black-and-white screen—I think that the game was called Space Invaders.
Even those of us who do not spend our spare time in Liberty City or strumming along to Guitar Hero can recognise the value of the industry to Scotland. Joe FitzPatrick, whom I congratulate on securing today's debate, mentioned that Dundee's loss has been Edinburgh's gain. To continue that theme, the headquarters of Rockstar North are less than a mile from this building. The company is the developer of the much-loved and admittedly also much-criticised Grand Theft Auto series, which has been mentioned, and before that of Lemmings, of which one of my staff members admits to being a big fan.
As we have heard, Dundee is a real hub of the business. It is the home of many of our best companies and of the game in Scotland recruitment event. This is not a fringe business or hobby—it is mainstream and a multimillion-pound success story. Rockstar North tells me that it has sold more than 100 million games over its short company life, and it continues to grow and develop. To compare the company to actual rock stars, it has achieved about the same number of sales as The Who.
Many Scots who play games do not know that so many of them are made here: few in Scotland know that we are home to such a successful games industry. It is a high-tech and creative home-grown triumph, and it appeals to our younger generation, who might be unsure about their further and higher education. Even if they end up working elsewhere, the prospect of a job producing games has convinced many people to stay on and study.
No country can afford to neglect an area in which it is a true world leader, and the Scottish Government could redouble its efforts to promote the sector at home and internationally. Existing tax credits could be simplified—and it is right to bring tax credits into the discussion. I hope that ministers will meet representatives of the industry, of NESTA and of the universities to establish how the current support arrangements might be improved. Marlyn Glen has provided many recommendations in that regard.
We do not need to speak Gaelic to know its importance to Scotland, nor do we need to drink whisky to appreciate the contribution that our distillers make—and nor should politicians such as me assume that we have to be gamers to know the importance of games.
I add my name to the list of members who have congratulated Joe FitzPatrick on securing a debate on what is now a much better recognised part of our economy. It is less well-recognised than we would like it to be, but I believe that we have provided the nation with some confidence in what is a fantastic cluster in Dundee—which I recognise fully, notwithstanding Joe FitzPatrick's remarks about some companies moving to other parts of Scotland. However, the companies are still in Scotland and are contributing massively to the economy.
My view on the games business was formed when I had the opportunity to attend the dare to be digital event in Dundee, at which I saw the competition winners put through their paces by the panel of judges. It was remarkable how the qualifying students were able to bring a viable working model from zero to fruition over an intensive 10-week period. I understand that many of those students went on to work in the industry.
We should recognise that there is something special about Dundee. It involves the training and skills that are provided by the University of Abertay Dundee and the other education providers in the area. They are recognised for that work, and it is interesting to note that many of the graduates who go into the games industry are mathematicians and programmers—they have not necessarily done one of the plethora of gaming courses that are available in the UK. It is Abertay that, almost uniquely, provides the Skillset-accredited training that allows trainees to enter the industry on an industry-ready basis. Sadly, some of the other courses do not offer that and so are not getting the training right to offer business in Scotland and the rest of the UK industry-ready participants.
Much has been said about taxation—and that is quite right. I share with Joe FitzPatrick our pride in the games business in Scotland, but I also share some of the concerns that he expressed: tax incentives and measures can improve and change the dynamics of a particular business. I agree with Gavin Brown that the issue is not just one of tax breaks. It is one of creativity, entrepreneurship, innovation and having an education support stream, and it involves the work of development agencies and Scottish Enterprise. Many things come together to make the industry a success, but that does not mean that we do not need to address the issue of taxation. I was pleased to note the increase in R and D tax credits, but more requires to be done, and I share some of the concerns that have been expressed.
It is interesting that Canada, with a 40 per cent tax break on R and D and a 37.5 per cent tax break on support for employees, has come from a standing start 10 years ago to a significant position in the world now. We need to address taxation. It does not provide all that is needed for making a difference, but it is part of the package that will allow the industry in the UK, and in Scotland in particular, to develop over time.
I, too, went to the discussion with representatives of the games industry in one of the committee rooms this afternoon, and I put it to the minister that lessons can be learned from how the biotech industry was supported. The public sector and business angels in the private sector made interventions to develop that industry, perhaps not into all that we wanted it to be but into a substantial position in the economy. We should note the lessons and applicability of that example to the games industry.
Other members have mentioned the fact that we do not have a publisher model in Scotland. We have missed out on that, and it is critical because, bluntly, much of the money is made through that route. Publishers also tend to draw innovation and creativity in house, and it is important to consider the potential for parts of the industry to be moved out of Scotland to elsewhere.
The games industry is not just about games but about innovation and entrepreneurship, and it is important to acknowledge that it has a role to play in education—in teaching our children, in medical trials, and in many other areas. A member mentioned the shoot-to-kill training package for the police, and games methodology has many important applications. I have had the opportunity to play SimVenture, which enables entrepreneurs who are starting out in business to explore in a complex but risk-free way how to develop their business.
The holy grail is not the taxation system but the package of support mechanisms for creativity and innovation to enable people to develop products and bring them to market. At UK and Scottish Government levels we need to consider a range of matters to support people, from the individual who develops a game in his bedroom to our businesses, which need support so that they can continue to grow. All members are solidly behind such an approach and want to work together to achieve that outcome.
I congratulate Joe FitzPatrick on securing the debate and on the relevance of the motion.
One or two speakers—though not Andy Kerr, whose thoughtful comments about tax were appreciated—might appear to be playing a computer game entitled Angels on the Head of a Pin, after Duns Scotus, given how they tried to avoid talking about taxation by saying that it should be discussed elsewhere or that we should not create a fight with Westminster, as I think Mr Smith said. The motion mentions the current tax regime, and the industry's view is that the current tax regime is a barrier to further development.
The real issue, as Nigel Don and Andy Kerr said, is the relationship between the tax regime and creativity. Nigel Don was wise to talk about the established precedent in the UK in relation to the tax system's contribution to film production. The approach is used much more effectively elsewhere but is acknowledged in our tax structure. We must consider how we use fiscal levers to achieve policy objectives in the creative sectors—of course, there is a wider question about how we do that in all sectors. Let us be honest, the answer is that we cannot use levers that we do not have—it is impossible to do so. Perhaps I will go on to consider more consensual views, but at the outset I want to say this: give us the tools to achieve the objective.
The Parliament and Government have powers in relation to business rates. We all know that rates for small businesses have been reduced, but does the minister accept that his Government has just increased business rates from 46p in the pound to 48p in the pound? Why has it done so?
I will not be dragged down that avenue, which is lined with red herrings. I repeat my point, in case Mr Brown did not hear it: give us the tools on taxation and then we can decide how to apply them to create opportunities in sectors. That is a political issue and I pay tribute to Joe FitzPatrick for the work that he is doing to advance the issue in Dundee—it was most memorably advanced there last week by Councillor Craig Melville's victory in the Maryfield by-election, which will change the state of Dundee.
It is unfortunate that the minister has not risen to the occasion in the debate. Does he agree that, although most members acknowledge that taxation plays a part in the debate, it is not the be-all and end-all? The model in France has not worked. Working collectively to use the tools that are available at UK and Scotland levels, not the speech that the minister has given so far, might get us somewhere.
I accept that taxation is not the be-all and end-all, but it is not possible for us even to decide whether it is relevant because we do not have the powers. Give us the powers, and we will then decide whether it is relevant.
I will move on from the motion, which mentions tax, to talk about another way in which we consider creativity. Nigel Don is right to define creativity by activity and not medium. The point that Marlyn Glen made is germane to that. How we support the creative industries in the widest sense—activities undertaken by creative people—is a cultural issue. Within cultural policy, games are both artefact and idea. They are actual things that contribute to our culture, but they are also pervasive in other cultural expression. For example, I think of Scarlett Thomas's recent novel "PopCo", which is about playing games. It is also about alternate realities and how computer games create them, sometimes in potentially destructive ways.
The issue is important. The industry is important to us and is an important part of the creative industries sector. It needs to have all the tools at its disposal to compete internationally and one of those is undoubtedly taxation.
The serious challenges cover other areas. The NESTA report is significant. There is a potential lack of skills and there are barriers to finance, as well as the issue of subsidies in other territories. However, there are also interesting ways forward. For example, the Scottish Enterprise digital media industry advisory group is taking forward plans to develop the sector. That group includes some of Scotland's most important games companies, such as Realtime Worlds. It is considering how to secure more investment in games companies, greater internationalisation and more innovation and has highlighted the need to consider a range of possibilities.
Talent is needed to sustain the industry, as in every industry. The recent investment of £5.8 million for two new Skillset media academies is an important part of that. The academy at the University of Abertay Dundee will specialise in computer game education, and I praise the university for its initiative in that area.
We also need to ensure that those who are already involved in, or want to be involved in, the creative industries know where they can get the support that they need to get in or get on within those industries. The framework agreement that we have recently published—this, too, is germane to Marlyn Glen's point—sets out the roles and responsibilities of organisations that provide support to the creative industries. I am pleased that enterprise agencies, local government and creative Scotland will work together to implement that agreement. As I mentioned in my statement on broadcasting, Councillor Harry McGuigan from the Convention of Scottish Local Authorities and I will jointly chair the short-life task force that will realise those plans.
We want Scotland to be recognised as one of the world's most creative nations across the board. Creative entrepreneurs—and no area of activity is more important for creative entrepreneurship than computer games—can access specialised support; we want to ensure that they go on accessing it through creative Scotland.
In the debate, we should acknowledge the reality that we need tax powers, but we should also celebrate the success of the computer games cluster in Dundee. My colleague the Minister for Enterprise, Energy and Tourism met academics at the University of Abertay Dundee last month to discuss a range of issues. He learned first hand about the work that is being done in Dundee and he celebrated it.
We will bring together key figures from the industry to identify what needs to be done whenever we need to. We will help to support the sector, but we will also be realistic. We will do what we can, but we could do more with the powers to do more.
Meeting closed at 17:48.