Labour leadership candidate Ed Balls has visited Dundee following Realtime World's administration and he’s claimed the cancelled tax breaks for the UK games industry are the cause of the company's failure.
In a post on his personal blog, the shadow education secretary was quick to remind the public of the recommenced tax breaks by the previous Labour government which were axed by the Tory and Liberal coalition.
Balls also highlighted the competition UK faces from countries such as Canada, where considerable government support is given to the games development industry.
"The Tory-Lib Dem government is putting the future of the computer games industry in Scotland at risk," wrote Balls. "The terrible news this week about Realtime Worlds could be just the start unless the coalition government rethinks its decisions which are costing jobs and risking the recovery.
"While Labour set out plans to support the industry in March, the new government axed it in June and the result is job losses in Dundee in August. These are the stark consequences of a government which cuts at any cost and seems to think that unemployment is a price worth paying. "
It’s probably wrong to suggest the loss of tax breaks are the reason for Realtime Worlds going into administration, as there were definitely more factors involved, such as the poor reception of All Points Bulletin.
It is worth noting, however, the UK industry will welcome any support it can get, in this time of financial peril.