The government today launched a "root-and-branch review" of international film co-production treaties in a bid to ensure they are bringing real cultural and economic benefits to the UK.

The review, which will be jointly carried out by the DCMS and UK Film Council, will look at how the existing treaties are working and explore the potential for new ones.

To kick the process off the government today published updated guidelines clarifying the criteria international co-productions - films made by two or more countries - must meet to gain British certification, which enables them to apply for film tax relief.

The updated guidelines, which are supported by the UK Film Council and producers body PACT, will help cut down on abuse of the system.

Films Minister Estelle Morris also announced that from now on a minimum 40% of the film budget in any bilateral UK/Canada co-production must be spent in the UK - up from 20%. This addresses a current imbalance and has been agreed by the Canadian authorities.

Estelle Morris said: "Co-production is central to the future of the British film industry and the UK can lead the way.

"But it is a two-way deal. Co-productions and the associated tax breaks must lead to more jobs in film in this country and more work for our film making facilities. I am determined to ensure the right people are reaping the benefits and we will be monitoring the system to ensure just that."

Co-production has been an important part of the expansion of the UK film industry over the last decade. In the early 1990's approximately 20 co-productions were made each year. This year will see around 200 UK co-productions.

Films qualify as British if either 70% of the budget is spent in the UK or through co-production agreements. The UK has agreed bi-lateral film co-production treaties with Australia, Canada, France, Germany, Italy, New Zealand and Norway. The European Convention on Cinematic Co-Production also puts in place agreements between the UK and 30 other European countries.

(gmcg)