Written evidence from Skillset
INTRODUCTION
1. This is Skillset's response to the Scottish
Affairs Committee's Inquiry into the Video Games Industry in Scotland.
Skillset is the sector skills council for the Creative Media and
Fashion and Textiles industries—an independent, employer-led,
UK-wide organisation that aims to make sure that the UK creative
media and fashion and textiles industries have the right people,
with the right skills, in the right place, at the right time in
order to remain competitive.
2. This response is not confidential and we are
happy for the Committee to share this with other interested parties
as well as include it in the published report.
SKILLSET'S
INTEREST IN
THIS INQUIRY
AND EXECUTIVE
SUMMARY
3. Skillset is the Sector Skills Council
(SSC) for the Creative Media and Fashion and Textiles industries,
comprising advertising,[27]
TV, radio, interactive content design, animation, content for
computer games, facilities, photo imaging, publishing and fashion
and textiles.[28]
Skillset is responsible for the production of Strategic Skills
Assessments (SSA) for each of the UK's four constituent nations,
and in January 2010 it produced a Strategic Skills Assessment
for Scotland (http://www.skillset.org/research/index/#ssa ) which
reviewed current and future needs and contributed to the UK Commission
of Employment and Skills National Skills Audit for 2010. As these
are going to be annual documents, the next SSA is expected in
early 2011.
4. Skillset's carries out systematic and
vigorous research into the industry and this feeds into the SSA.
Unless otherwise stated, research quoted in this response is from
Skillset sources and appears in the SSA for Scotland.
5. As mentioned before, Skillset is looking
after the skills needs of the Computer Games (Content) industry.
These occupations will include Games Designers, Artists, Programmers,
Project Managers and Producers.
6. Creative Media is a popular choice of
study amongst young people; despite this potential over-supply
of new entrants to the industry, some skills shortages remain
within the sector. In particular 45% of employers in Computer
Games (Content) industry have had difficulty obtaining the skills
they need—the majority of which are reported to be industry
specific.
7. The evidence presented in the Skillset
Strategic Skills Assessment for Scotland points to Computer Games
(Content) industry as arguably a key asset in the Scottish Creative
Media portfolio. In particular investment in well developed educational
infrastructure, particularly at the University of Abertay and
University of West Scotland where the Skillset accredited degree
programmes produce graduates which are considered by employers
to be "industry ready", demonstrates the importance
of industry-facing HE provision. This environment clearly provides
the ground for the kind of successful games cluster that has emerged
around Dundee and Tayside in recent years.
8. Feedback from industry identified two
inter-related challenges for Scottish Computer Games (Content)
developers: achieving critical mass; and attracting talent.
9. It is important to state that Skillset
cannot have a position on the Tax Relief discussions. However,
our research has pointed out that favorable tax breaks alone are
not enough to allow expansion. The talent and the right skills
also need to be available. We hope that any proposed alternative
financial incentives for the industry will also be examined from
the perspective of producing the right talent to ensure any resurgent
industry has the flexibility to expand.
SKILLSET'S
RESPONSE TO
COMMITTEE'S
QUESTIONS
10. Out of the five questions asked within
this inquiry, the following two are the ones that Skillset can
contribute:
The contribution made by the Scottish video games
industry to both the Scottish and UK economy
11. The Games industry in Scotland may not
be big in size (Skillset research estimates that under 500 people
are working in Computer Games (Content) industry in Scotland,
representing around 7% of the UK total for this sector), but it
has an impressive output. Scotland has carved a significant niche
in this market with a number of high-end studios producing games
for worldwide distribution.
12. However, the global nature of the games
market means the industry faces strong competition for the traditional
leading nations of USA, Japan and now Canada. At the UK level
a lack of global scale publishers, limited access to finance and
skill shortages have been identified as key barriers to sectoral
growth.[29]
13. Feedback from industry identified two
inter-related challenges for Scottish Computer Games (Content)
developers: achieving critical mass; and attracting talent. In
terms of achieving critical mass, it was felt important that the
games cluster continue to grow and develop.
14. Similarly, the attraction and retention
of senior talent was given as a constant challenge. In this sense
the attractiveness of Scotland as a place to live and work was
seen as crucial.
15. In order to overcome skills challenges,
Scottish Computer Games (Content) developers recruit globally
with some employers having over 25% of their staff originate from
outside the European Economic Area (EEA). The feedback from industry
noted a number of challenges in doing this. These were:
— Location—with it being challenging
to attract the best talent to Scotland.
— Scarcity—competition for talent
is global. Scottish companies are competing with other international
games developers to attract the best.
— Specificity—at the senior level,
it was said to be important that prospective employees had a proven
track record in Computer Games development.
16. Skillset's remit is primarily concerned
with the development of talent for the Creative media industries,
and within the scope of this inquiry, the Computer Games (Content)
and Interactive Media sectors in particular.
17. The evidence presented in the Skillset
Strategic Skills Assessment for Scotland points to Computer Games
(Content) industry as arguably a key asset in the Scottish Creative
Media portfolio. Apart from some world renowned companies which
compete globally and have a proven track record in producing quality
outputs, there is also a supportive environment where the Scottish
Government and the national economic development agencies recognise
the potential of the industry;[30]
and there is also investment in well developed educational infrastructure,
particularly at the University of Abertay and University of West
Scotland, where the Skillset accredited degree programmes produce
graduates which are considered by employers to be "industry
ready".
18. It is indicative and a testament to
the potential for the industry in Scotland that out of the nine
UK Skillset accredited games courses (judged by industry criteria)
no less than four are based in Scotland—three at Abertay,
and one at University of West Scotland (UWS). The connection of
industry facing HE provision clearly provides the ground for the
kind of successful games cluster that has emerged around Dundee
and Tayside in recent years.
19. The following link is for a case study
that shows the journey of a graduate from the Abertay course and
how his skills are now benefiting the Scottish Computer Games
(Content) industry:
http://courses.skillset.org/case_studies/183_andrew_heywoods_games_career_after_graduating_from_university_of_abertay_dundee
20. Recently Culture Minister Ed Vaizey
announced (indicating how the UK Government sees skills as being
vitally important for the Games industry) an Independent Review
of Games and Visual Effects (VFX) skills, chaired by Ian Livingstone,
and managed by NESTA in partnership with Skillset.
21. Scotland was represented at the inaugural
meeting for this Review by Paul Durrant of Abertay University.
Also invited was Derek Robertson of Learning and Teaching Scotland.
All Scottish accredited courses will be feeding into the Review.
22. Skillset will ensure that the Review
covers best practice from these universities, and is also made
aware of the increasingly problematic financial and organisational
structures under which such courses operate.
The recent announcement by the Chancellor of the
Exchequer to abolish tax relief for this sector, and to examine
alternative financial incentives for the industry
23. It is important to state that Skillset
cannot have a position on the Tax Relief discussions. Our role
is to recommend and attempt to influence within the sphere of
education and training, and not on these issues.
24. However, our research has pointed out
that favorable tax breaks alone are not enough to allow expansion.
The talent and the right skills also need to be available in order
to succeed from potential growth to actual industry development.
25. We hope that any proposed alternative
financial incentives for the industry will also be examined from
the perspective of producing the right talent to ensure any resurgent
industry has the flexibility to expand.
10 September 2010
27 Advertising and Fashion and Textiles sectors came
under Skillset's remit in April 2010. Back
28
Ibid. Back
29
Nesta (2008) Raise the Game: The competitiveness of the UK's games
development sector and the impact of governmental support in other
countries. Back
30
Creative Industries Key Sector Report, Scottish Government, November
2009. Back
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