Government of Quebec Cutting Subsidies to Games Companies

June 13, 2014 - GamePolitics Staff

Game companies in Quebec are about to see their subsidies from the government evaporate. In an effort to get rid of the provincial government's deficit and cut spending, lawmakers in Quebec have decided to cut the generous subsidies they have given companies willing to move to and do business in the region.

According to a report in the French-Canadian publication La Presse, the Quebec government plans to cut as much as $500 million from the incentives it currently offers multinational businesses like Ubisoft. Ubisoft could lose as much as 20 percent of their benefits.

The government of Quebec is facing a $6 billion deficit. The full weight of these cuts will not be felt until 2016.

We'll have to see if big companies like Ubisoft decide that, without those incentives, it will find a friendlier atmosphere to do business in or outside Canada.

Source: GII


Comments

Re: Government of Quebec Cutting Subsidies to Games Companies

The debt is not even at 40% of GDP, it was at 44% in 2002, and grew nearly exclusively under the previous reign of the PLQ and the heavy amount of institutionalized corruption in which they partook. This is just another excuse to further their ideology and cut anything that isn't helping a group lobbying heavily the government. >.>

Re: Government of Quebec Cutting Subsidies to Games Companies

Or they saw that the money that was coming in thanks to the games industry was not even covering the cost of the tax incentives and ended them because they were wasting money.

Re: Government of Quebec Cutting Subsidies to Games Companies

I could have bought that if it wasn't for the rest of the budget. As it stands, they are cutting in everything except key areas that were linked to a huge corruption scandal here, so it's very unlikely the reason. Maybe it was the cherry on top of the sundae of whomever had to justify that cut in the ministry, mind you.

 
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