The adage that success breeds success doesn't quite apply to the Quebec film industry.

On one hand, Quebec audiences are embracing local films like never before. But an industry in which bankable filmmakers depend increasingly on government funding has hit a wall. Too many scripts are chasing too little available investment from public agencies Telefilm Canada and SODEC.

"There just isn't enough money to finance films that filmmakers, distributors and Quebec audiences want," says Arnie Gelbart, president of Galafilm Productions.

Now industry players are scratching their heads over how to solve an existing financial crisis that will not be bailed out by a federal government that will not increase its subsidies for Quebec producers - at least for now.

Lorraine Richard, president of Montreal prodco Cité-Amérique, points out that the federal government launched a new film policy six years ago to boost production budgets for indigenous movies in a quest for bigger market share, and it succeeded in Quebec. From 2001 to 2005, the market share of Quebec films rose from 4% to 18%.

Now government investment needs to keep pace with that box-office success, she insists.

"All this depends on the will of the government to support, or not, our culture. Are they there, or not? That's the situation," Richard says.

Potential solutions to the current crisis are being hashed out by various committees comprised of industry players. One group is looking to revise Telefilm's envelope system, while a second is considering alternative financing sources for Quebec films, which, on average, derive three-quarters of their budgets from government sources, including Telefilm, SODEC and tax credits.

There's talk of production tax-credit hikes [from the current level of 30% on labor expenses], a tax on Quebec cinema tickets, and forming a new film fund with public and private dollars. But little consensus has emerged.

While producers hope provincial exhibitors will consider the cinema ticket tax - similar to what France has - Canadian exhibitors nixed that idea when it was last raised six years ago.

Michel Pradier, director of French operations and the Quebec office at Telefilm, argues that, without new federal dollars for the Canada Feature Film Fund, the Quebec film industry should be tapping new financing from traditional partners - the local private sector or francophone copro partners - to maintain current production volumes.

"The international scene is an important part of the solution," Pradier says, adding that Telefilm is committed to helping Quebec filmmakers secure additional copro financing and foreign sales.

Joëlle Levie, director-general of film and television at SODEC, says the Quebec industry needs to rethink its financial model for homegrown films, especially for bigger-budget movies.

"We need more money in the system? Yes. But what kind of money is something the industry must think about. It must not just come from the government," she argues.