Press Releases

Date : 14th December 2011

IOA chief slams 'bewildering' MGD proposals

(December 14th) – Peter Weir, Chief Executive of the IOA Group, described the decision to include SWPs within the framework of Machine Games Duty as 'totally bewildering'. Armed with a barrage of data Weir stated:

This government has said that it will listen to empirically based arguments, and the case for supporting the SWP sector and not destroying it could not be clearer. In the last two years there has been a 15 percent decline in machines (equivalent to 4,500 units) with an estimated loss of £1.8m/year in VAT income. Over the same period there has been a 46 percent decline in machine income resulting in an estimated loss of VAT of £8.5m/year. From a manufacturing perspective there has been a massive drop in sales, in some cases of up to 90 percent, which has resulted in significant job losses and with that, a loss of tax income. The number of independent SWP games developers has plummeted from 30 to just three; shutting the door on what has been traditionally a great industry for creative young software developers to cut their teeth and establish a career. At a time when the industry was looking to government to save the sector it has instead sounded its death knell. If SWP is included within MGD, the sector will simply cease to exist resulting in an annual VAT loss alone of over £10m. Coming at a time when the private sector is being asked to kick- start the economy and help narrow the deficit, I ask you, where is the sense in that?

IOA contact: Ken Mullarkey (Sales Executive)

Tel: 01622 719163
Mob: 07768 537101
Email: ken.mullarkey@i-o-a.com

Media enquiries to Chris Jones at Scott & Jones Communications
Tel: 01273 699900
Email: info@sjc.co.uk