Dáil debates

Tuesday, 19 July 2011

3:00 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Question 24: To ask the Minister for Jobs, Enterprise and Innovation his plans to develop the digital gaming sector to increase the employment it is already providing to the Irish economy. [21076/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Digital gaming is one of a number of key sectors which I see as offering strong potential for growth and increased employment in Ireland. The global video games market was valued at $55.5 billion in 2010 and is expected to grow to $82.5 billion by 2015, making it the fastest growing segment of the wider entertainment and media sector. It is eclipsing music and box office figures at this stage. The increasing popularity of social gaming and online play has changed the shape of the industry. This has opened up not just a global market for developers, but also opportunities for the industry to find new locations offering local talent and favourable tax regimes. It is a rapidly moving marketplace and one where Ireland could become a significant player.

The programme for Government includes a commitment to support the digital games industry and promote Ireland as a digital gaming hub. The sector directly employed 1,500 people in Ireland in 2010 in core games companies, representing a four-fold increase since 2004, with a further 1,000 employed in online gambling. There is considerable potential for jobs growth in the core video game sector, with a number of announcements by IDA and Enterprise Ireland-supported companies already in 2011. There is potential to increase employment in the sector to 4,500 by 2015, and for growth across related sectors or activities, such as eLearning and animation. Potential growth opportunities for Ireland lie in the areas of advanced game servicing, games development, games publishing and enabling technologies.

I recently met representatives from the digital gaming industry to discuss how we could work with them to further develop the sector. At present, Forfás is preparing a report for me on the potential of the sector. The report will identify key actions that need to be taken to optimise its development. IDA Ireland, Enterprise Ireland and representatives of the digital gaming sector have provided input to this process.

While focused on the electronic games industry, the Forfás study will contribute to a better understanding of the needs of the wider digital economy in Ireland and the policy framework and actions required to facilitate its growth. I expect to receive the report before the end of this month. I will give it early consideration and seek the support of my Government colleagues to take appropriate actions required to develop the sector further.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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As the Minister rightly says, Ireland has been very successful in this area and there is great potential in it. Does the Minister agree that the development of this important sector is hampered somewhat by the fact that there are different Government agencies and Departments dealing with different segments of the market? Does he also agree that what is key to growing the sector is a highly skilled, specialised workforce? Has the Government any plans to ensure we have that workforce to attract the opportunities that undoubtedly exist?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I do not really accept what the Deputy is saying. Like any business, it depends on a number of elements of government to make it right. In my discussions with representatives of the sector, it was made clear that they want to see the skills flow. The interpretation of research and development tax credits is obviously important for them as well, which is also a revenue function. Support from Enterprise Ireland and IDA Ireland for clustering and so on is also important. Like any other business, they depend on a range of factors for their success. I believe there is a determination to develop opportunities like this. When I have the report at the end of the month, we will look at issues such as skills deficits and will be working with the Minister for Education and Skills. The programmes he has been developing are aimed at converting people with other skills. That offers opportunities in this sector. This does not need a super agency for the gaming sector. We do not need an agency for every sector.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I am not suggesting for a moment that we create another agency. We want to see fewer agencies and not more of them. Is the Minister aware of the recommendations for the sector in the Forfás report about making it happen? I refer specifically to the proposal that the Government should facilitate networking and collaboration across sub-sectors of the creative industries, such as digital media and design, and particularly in MNCs, SMEs, sole traders and academia. Another proposal is to develop and promote education and training initiatives to increase capacity and skills in the area of design and innovation. Will the Government accept those proposals and act on them?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I had a joint meeting with the Minister for Education and Skills only recently to discuss specifically education and training skills gaps. He is bringing forward proposals to increase the graduate intake into areas with skills gaps, while under the Springboard initiative he wants to switch people with different skills into these areas.

We are very conscious of the opportunity for networking in areas like digital media and where there is a convergence of technologies. Many of the research and development initiatives that have been developed by the Minister of State, Deputy Sherlock, build on the fact that we have collaboration between multinationals, SMEs and the academic community. Many of these digital gaming companies have been spun out from research activities in the higher education institutes, funded by Science Foundation Ireland, SFI. There is very fruitful investment in this area, with good spin-offs.