MONTREAL — The investment arm of the Quebec government has signed a $400-million financing deal with Lionsgate Entertainment to boost film and television production in la belle province.

Under the four-year deal, the Société générale de financement du Québec — which invests taxpayers’ money in growth capital and development projects to create local jobs — will finance 35% of the production costs for 16 television and film projects, says Marie-Claude Lemieux the spokesperson for SGF.

Lemieux says the deal is meant to boost the Quebec film industry. Many American productions have avoided Quebec recently because of a feud between technicians union AQTIS and upstart IATSE, although a temporary truce is now in place.

‘We see this as an opportunity to bring business to Montreal so that our technicians are employed here. We have dealt with the labour dispute and now it’s a question of attracting new projects,’ says Lemieux.

Each project Lionsgate puts forward will be evaluated by the SGF for its capacity to use local expertise, says Lemieux. SGF hopes the deal will create more than 6,700 full-time equivalent jobs in the province over four years.

One of the projects that will fall under the agreement is the sixth season of Dead Zone, starring Anthony Michael Hall, which recently wrapped up shooting in Montreal. The transaction will also include the October 2007 production of Lionsgate’s next Punisher film, starring Ray Stevenson (Rome).

‘I think it’s the best news this province’s film and TV industry has had in a long time. It’s going to benefit thousands and thousands of workers,’ says Hans Fraikin, head of the Quebec Film and Television Council.

In October, the Société reached a similar financing deal with Dark Castle Entertainment, headed by Lethal Weapon and Matrix films producer Joel Silver. The SGF agreed to invest $18 million in the $270-million deal to finance 15 films over the next six years. The productions are to create 1,500 jobs over five years. Unlike the deal with Lionsgate, only six of the Dark Castle films will be shot in Quebec.

In mid-July Lionsgate Entertainment secured $8.9 million in provincial and municipal government incentives to shoot an unnamed U.S. series in Edmonton. The deal, which secured 45% of the series $20-million budget was initiated by the Edmonton Economic Development Corporation. The City of Edmonton kicked in $3.5 million in grants, and the province added $5.4 million.