Mr. Speaker, I would like to thank my hon. colleague from Sherbrooke for giving us a chance to talk about the many benefits of the agreement with Netflix.
This government strongly believes that the establishment of a new Canadian business in the film and television production sector by Netflix is wonderful news for Canadian creators and producers, and ultimately for our cultural industries as a whole.
The approval of this significant investment in Canada under the Investment Canada Act is yet another indication of our government's strong commitment to growing Canada's creative industries, with new investments that create more opportunities for creators and producers across the country. In fact, this major investment of a minimum of $500 million over the next five years on original productions in Canada will provide them with even greater access to financing, business partners, and ultimately new ways to connect with audiences across the globe.
Such an unprecedented investment by a digital platform in Canada, a first of its kind for Netflix outside of the United States, is yet another confirmation to the world that Canada is a great place to invest, attesting to the creative talent of this country and the strong track record of our cultural industries in creating films and television productions that really stand out.
It is important to make a distinction between the cultural activities of Netflix Canada, which has committed to investing a minimum of $500 million Canadian in the production of Canadian-made films and television series, with the activities of its U.S.-based video streaming service. These are in fact two separate kinds of cultural activities.
It is also important to reiterate that all businesses, including those involved in television and film production that set up and operate in Canada, must abide by the Canadian tax system, which includes GST. Given that Netflix Canada plans to operate a production company in Canada, it will have to comply with all GST-related rules, which could apply to its production activities in Canada.
Lastly I would like to point out that Netflix announced last week that it has acquired the award-winning Canadian film, Les Affamés, written and directed by Robin Aubert, one of the most unique voices in Quebec's cinema, to be made available on the international market as early as this coming March. This represents the first of many Canadian films and television series to be acquired or produced by Netflix Canada as a result of its significant investment announced last fall.