The Local Enterprise Offices (LEOS) "archaic" business grants are hindering the digital games industry and other digital businesses, according to an Irish MEP.

Fine Gael's Maria Walsh, who is on the EU's Committee on Culture and Education, said the criteria for what businesses can apply is a major issue.

Speaking to BreakingNews.ie, she said: "In many ways their belief around what business qualifies is archaic. If you do not manufacture something or are not shipping anything physically your grant system is limited or not available."

She said they need to take into account the "digital footprint of the company" and not just traditional businesses who deal with imports and exports.

While the likes of a Digital Tax Credit recently being introduced for the sector, Ms Walsh said on a national and European level there needs to be a concerted effort to support the industry.

"I liked that Paschal [Donohoe] made sure the tax credit is implemented, but what we need to do next is make sure that there is no red tape in the way both nationally and across Europe."

She pointed to the success Ireland has had in the past developing other industries. "We're an island that built ourselves around the pharmaceutical industry and on big tech. Ultimately, there a lot of the indigenous Irish businesses and I think Esports and gaming could be the next big thing here."

“In terms of digital infrastructure around the country it is growing, but there are a lot of digital hubs," she said "People can also set up their businesses or work remotely if they want."

The MEP credits one of her parliamentary assistants for turning her on to the importance of the gaming industry.

"I have a female on my team called Éimear who is a diehard gamer. For the past three years she has worked with me and tried to educate me on the gaming industry," she said.

Since then, she made a speech in the European Parliament where she spoke about the potential of the gaming industry to grow in Europe as well as the cultural impact it can have.

She mentioned that Irish video company Black Shamrock recently announced 80 new jobs at their Dublin office and spoke about the success of Gamerfest 2022 which took place at the RDS recently as well.

While the digital games industry continues to dwarf both the movie and music industry in terms of revenues, a lot of politicians tend to only focus on the monetary benefits rather than the cultural ones.

Ireland is renowned for its myriad of writers and musicians, as she said though there is no reason we cannot be known for our game developers as well.

Breaking down barriers

“Regardless of whether you were born here, or you call Ireland your home, you're not coming out of this country without having gained the ingredients of how to tell a good story.

“The online world has the potential to break down a lot of barriers as well, you're not simply just playing the game you are in a story and building a world that is welcoming to all.

"Ultimately, we just need to make it easier for people work in the industry here. This is a sector that could be a really vibrant one from an Irish standpoint," she said.

Some of her European counterparts have also raised awareness about the industry and its potential for growth in Europe. German MEP Niklas Nienaß (Greens–European Free Alliance) has advocated for the sector as well.

“Similar to me, he was naming game developers that were growing in Germany, and how they needed additional awareness and understanding.

"He clearly saw the potential of the industry and how we need to support it as well," she said.

Regarding the criteria for business applying for a LEO grant, a spokesperson for the Department of Enterprise, Trade and Employment said: "For any company to qualify for a financial support from their Local Enterprise Office they need to be a “manufacturing or internationally traded services” company by definition.

"There are of course exceptions such as adult entertainment, gambling etc."

Reporting: Breaking News