The WGC believes that video game writing is an emerging sector within our jurisdiction. We see video game companies engaging mainstream drama and comedy screenwriters, and we see young screenwriters choosing to explore a career in video game writing.
This committee has asked what measures government might take to further promote growth, innovation, and commercial success in this vital 21st century industry. We have a few suggestions. A labour-based tax credit has been very effective in helping to build the gaming industry in several provinces, including B.C., Ontario, and Quebec. The tax credit is based on the provincially resident corporation's labour expenses for a qualifying interactive product. It can be used in financing, or as corporate revenue. It encourages companies to hire and develop a domestic talent pool rather than bringing in temporary talent from outside the country. We are very supportive of measures that will not only allow video game companies to grow in Canada, but also to support a domestic talent pool.
The government has done much with Telefilm, the Canada Media Fund, and the film and television tax credits to both support small businesses working in film and television and to ensure that they support Canadian talent as well. We understand that the video game industry is a different sector and perhaps needs different support systems, but the government should maintain the social policy goals of supporting Canadian talent as well as Canadian businesses. This means prioritizing hiring Canadian talent as well as ensuring that the majority of costs are spent in Canada. The Canada Media Fund's experimental program, which funds innovative digital media like video games, requires companies to be Canadian owned and controlled, and costs to be spent 75% on Canadians. They cannot be conditional upon a talent requirement system like CAVCO's because one does not exist.
However, if the government decides to directly support the production of Canadian video games, we strongly urge the development of a comparable talent system to ensure that federal funding assists in building a talent pool as well as capable companies. We want to be clear that we are not at all advocating for a content requirement for federal funding of video games as there is with film and television. While a video game that reflected Canadian society and stories would be fun, requiring that as a condition of support would be contrary to the fantasy nature of most video games. We are not advocating inserting beaver characters into hack and slash games.
Other witnesses that have spoken before you in this study have suggested that funding more university programs, such as specifically for video game writing, is needed. We would like to suggest that while university programs are helpful, it would be equally of value and would make more skilled writing talent immediately available if there was support for mid-career training programs that would allow experienced drama and comedy screenwriters to learn about the specific craft of video game writing. The transition from film or television screenwriting to video game writing requires workshops rather than a degree program.