Interesting.
Im in Australia, Victoria - and we get substancial government assistance with the games industry (not so much straight handouts though). And its done through our "Film" department ("FilmVic" has a department called "MultimediaVictoria" which handles the funding).
It works quite well - although as stated, anyone looking for a "handout" to make a game will be sorely dissapointed.
http://film.vic.gov.au/www/html/7-home-page.asp
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Nocturnal is helping companies get cheaper game ratings in Australia:
Wii code: 2263 4706 2910 1099