Thanks, Simon.
This committee asked how the industry continues to be a model for growth and technological innovation, commercial success, and the creation of highly skilled jobs.
According to the Nordicity report commissioned by the Entertainment Software Association of Canada, there were 329 small, medium, and large studios in operation across Canada in 2013. In 2012 the video game industry directly employed 16,500 full-time equivalent jobs and indirectly a total of 27,000. In total, the video game industry generated over $2.3 billion in gross domestic product for the Canadian economy. In 2013, Canada's video game sector became the world's third largest in terms of employment.
How do we continue to ensure the success and growth of this industry? Simon has outlined some ways the government can provide support through training and education. Of course, we are working at the local level in other provinces as well—in Toronto, through partnerships with Sheridan's Screen Industries Research and Training Centre, SIRT—to develop training programs for students and working performers.
Since the inception of this innovative collaboration which includes government, post-secondary institutions, video game production companies, unions, and guilds, SIRT has put over 120 performers through a three-level training course. Tomorrow, another 40 performers will take part in the latest course being offered at Sheridan.
As the government has developed Canada's film and television industry through its support of the Canada Media Fund, Telefilm, and tax credits, we think similar measures could also stimulate this country's video game industry. This view is supported by the House of Commons Standing Committee on Canadian Heritage in its April 2013 report on the entertainment software industry, after hearing from many of the same participants here today. The report makes recommendations including that the Government of Canada continue to support and promote the success of the industry through labour training and possible federal tax credits.
A labour-based tax credit has been extremely effective in helping build the gaming industry across Canada, including centres of excellence in British Columbia, Ontario, and Quebec. The tax credit is based on the producers' labour expenses for a qualifying interactive product. It encourages companies to hire and develop local talent rather than bring in temporary workers from outside the country. We strongly support measures that would not only allow video game companies to flourish in Canada, but also would work to create a robust and accomplished domestic talent pool.
It's key that any support the government is looking to offer the Canadian video game industry should prioritize the hiring of Canadian talent. It's not enough to support the companies and the production of video games. These initiatives need to be paired with development of performers who can do the specialized work that needs doing, and most importantly, keep that work here in Canada.