Thanks. Yes, I would be very pleased to talk to those issues.
Let me correct something. We do use SR and ED. It's very helpful for our industry. Most of our members do well qualify, as there is a high degree of experimentation as well as development in the course of video game manufacture.
What is wrong with some of the provincial programs that provide the digital tax credits, ours included, is that the provincial SR and ED element is offset. You may recall that I mentioned that the B.C. digital tax credit is 17.5%. We take the 10% for B.C.'s SR and ED credit off that, and with the fact that the qualified labour pool is different between the two—and I can speak to that in a minute—our effective tax credit digitally here in B.C. is just over 5.5% as calculated by PricewaterhouseCoopers.
What we have to watch for if we were to contemplate the creation of a federal digital tax credit.... We don't mind that there are stacking provisions with SR and ED. It's okay that this does get deducted off; no one wants to double-dip. However, watch for the qualifying pool of labour. For instance, the B.C. digital tax credit doesn't allow for owner members of certain video game companies to be included in the calculation. I humbly submit that in a studio of five to 10 people—and that's very common in the social and casual gaming realm these days—half the people sitting in that office are owners. In fact, we give equity in our companies. We're very pari passu in our organizations, and flat. It's part of our culture. They should participate.
Contract labour is often excluded, and it's very common in our industry. Because of the project nature of the video game development industry, we parachute people in, if you will, to various projects at certain times, so the contract element is very common to us. Just watch for those things.