Margaret Hodge, the UK's Minister for Culture, Media & Sport, has said that the government may challenge Canadian tax incentives offered to games developers, claiming that they may be in breach of World Trade Organization rules on competition.
Speaking to Channel 4 news on the subject, Hodge said:
Quebec is currently attracting a lot of investment from the likes of Ubisoft and Eidos by offering incentives such as paying up to 40 percent of wages and substantial tax breaks.
While the government is prepared to take the rather negative step of trying to stop the Canadian government from supporting games development, it won't take the more beneficial step of offering similar incentives. Hodge recently told ELSPA that such steps are highly unlikely from the UK government.
The Canadian government has said that it will discuss any concerns with the UK.
While the French government is allegedly concerned about Canada's practices, it has set about implementing its own incentives for the games industry. They are currently pending approval from the European Commission. Channel 4 reports that, in spite of what Hodges has said to ELSPA, it has learned that the UK government may implement similar steps if France's measures are approved.
Speaking to Channel 4 news on the subject, Hodge said:
"We're looking into what they've done, and the French are looking at it as well. We're not sure that actually what they've done sticks by what is known as the WTO rules on competition. We will have to think about challenging what they're doing if they are in our lawyers views breaching those rules."
Quebec is currently attracting a lot of investment from the likes of Ubisoft and Eidos by offering incentives such as paying up to 40 percent of wages and substantial tax breaks.
While the government is prepared to take the rather negative step of trying to stop the Canadian government from supporting games development, it won't take the more beneficial step of offering similar incentives. Hodge recently told ELSPA that such steps are highly unlikely from the UK government.
The Canadian government has said that it will discuss any concerns with the UK.
While the French government is allegedly concerned about Canada's practices, it has set about implementing its own incentives for the games industry. They are currently pending approval from the European Commission. Channel 4 reports that, in spite of what Hodges has said to ELSPA, it has learned that the UK government may implement similar steps if France's measures are approved.
Companies:
Ubisoft Montreal
Read More Like This
Comments
PreciousRoi 29 Oct 2007 23:05
1/2
Hammer the Canadians if they're breaking International Law, don't imitate them.
PreciousRoi 2 Nov 2007 12:19
2/2