THE long-term future of Merseyside’s highly skilled and thriving video games industry is under threat unless tax breaks are introduced to stop jobs going to Canada, it was warned last night.

The region is home to some of the leading companies in the video games sector, including Sony, Evolution Studios, and Project Gotham Racing creator Bizarre Creations, as well as many smaller developers.

But a number of Canadian provinces offer tax rebates of between 20% and 45% on staff costs, which has lead to claims of unfair competition. Last night, a key figure in Merseyside’s gaming industry called for a level playing field.

Treasury minister and Wallasey MP Angela Eagle told the Daily Post the Government was in discussions with the European Union to see what help could be given the industry.

Merseyside’s games industry is viewed by many as the jewel in the crown of creative industries.

Liverpool-based Playbox at present is working on new developments for Nintendo’s popular Wii console.

However, many people are not even aware of the games industry’s presence on Merseyside – there is no sign at Sony Computer Entertainment Europe’s development centre, in Wavertree, to alert passers-by to the hi-tech work going on there.

Steve Smith, of Merseyside ICT, who acts as a spokesman for the industry in Liverpool, said the positive impact of the gaming business was proportionally high.

“Tax breaks would put us in a far stronger position to compete,” he said. “It’s something that would level the playing field. At the moment, you have to question whether European companies are upping sticks to Canada. But, in the long term, it could do some damage, in that sense, prevention is better than cure.

“If the playing field is levelled, then the threat is minimised.”