Computer Games Industry

Debate between John Penrose and Justin Tomlinson

Wednesday 29th June 2011 Westminster Hall

[John Penrose]

The hon. Gentleman is quite right to say that there is a broader aspect to the matter. I was using “Grand Theft Auto” as a quick example rather than a widely based covering comment.

As for the numbers cited by the hon. Gentleman, I say this. Businessmen should always face many more ideas that would produce a positive return on their investment than they can afford. That is a fact of life in any industry, and certainly in the creative industries. There might be 100 options that could increase the bottom line, but they will not be able to afford to use them; they will not have the cash, the people or resources in general. That is the case with the Government. We inherited a terrible fiscal position, and the country’s balance sheet was in a very bad state. There are all sorts of things that might create a positive return, but we physically do not have the cash for them.

One of the major points of difference between the hon. Gentleman and me in our approach to macro-economics in general and to the industry—and also on a micro-economic basis—is that I am unsure where we would find the money to do some of the things that he suggests, such as tax breaks here and there. I respectfully suggest that he will need his own Treasury Front-Bench team to sign up to what he suggests. I suspect that those Front Benchers will be leery of doing so, because they would then have to explain which bits of other budgets, such as health or education, they would cut in order to release money for this, which taxes they would raise to pay for the additional tax breaks, or how they would persuade the financial markets, on the day that Greece is voting for its austerity package, that we should be borrowing more money for this, that or the other. This is an essential piece of macro-economic prudence, and I suspect it is a fundamental difference of approach between us. I understand where he is coming from, but I am trying to explain where we are.

[Justin Tomlinson]

I understand 100% the point the Minister makes about the constraints in the financial sector. However, he also referred to the fact that this is a growing market and there is an opportunity. Can we at least have an assurance that the Government are continuing to consider ways to support the industry and that, as and when opportunities arise, they will be considered?

[John Penrose]

I can absolutely make that assurance. I would like to go back to some of the things that we are already doing, which I hope will bring a significant benefit to this industry and others.