Finance Minister Paschal Donohoe says the tech sector has “a bright future” here as he announces tax breaks for video game developers

Treasury Secretary Pachal Donohoe has dampened fears of a tech jobs collapse, saying the sector is still “massively larger” than it was two years ago.

He was speaking at the launch of a new video game tax credit, which he said would support “other elements and other strands of technology in our economy that will lead to even more jobs over time.”

Several global tech companies – including Twitter, Meta and SalesForce – have cut jobs around the world, as have Irish companies Stripe and Wayflyer.

But Mr Donohoe said the job losses came “after several years of exponential growth” in Ireland’s tech sector.

“Any job loss is of course a job loss and I would prefer to avoid that,” he said Monday.

“But it has to be seen that even after these job losses the tech sector here in Ireland will be massively larger than it was in our country before the pandemic.”

He said Ireland’s tech sector has “a very bright and very confident future ahead of it” and that “any support” would be given to those who lose their jobs.

“I know what a time of reflection for those losing their jobs in the Irish tech sector, especially at this time of year.”

Mr Donohoe was commenting after the launch of a new 32 per cent corporate tax credit for companies that design, produce and test games in Ireland, modeled on the credit that has applied to film and television production since the 1980s.

The relief is capped at €25 million per project and requires a minimum spend of €100,000.

To qualify, developers must prove that the games are “culturally relevant” to Ireland and Europe, a test administered by Culture Secretary Catherine Martin’s department.

The tax credit applies to new investments made from January next year.

Ms Martin said the relief will lead to “greater investment from foreign games companies looking to locate in Ireland” and “help create jobs in the creative and digital arts in Ireland”.

Industry estimates suggest that Ireland’s digital games market could be worth €240 million, although games developed in Ireland were worth just €1.2 million in 2016, according to the Treasury. Finance Minister Paschal Donohoe says the tech sector has “a bright future” here as he announces tax breaks for video game developers

Fry Electronics Team

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