As a filmmaker, I made my first (and alas, only) feature film located in Edmonton about a father dealing with his ex-wife, his girlfriend and potential soulmate. I used my own money and it was nominated as Best Feature Film at the 2008 AMPIA Awards. It lost to a million dollar picture but regardless, this didn't bother me. I have spoken to several agencies who wished to see 'a Canadian voice" in the story. 
Do I feature a Tim Horton's in the background or reference a maple leaf in someway? This is absurd but one large hurtle that Canadian filmmakers must overcome.
The other major aspect is the audience and what they care to watch. Quebec film is doing well because they can support their own product. as for English Canada, does a person from Yarmouth care about a story of a grain farmer outside of Regina? Or does a miner from Grande Cache care about a Gaspe' fishing story? There is a severe lack of audience appreciation for Canadian stories, with rare English movies breaking out.