A controversial new film has become the talk of Parliament Hill.

Critics of the movie -- entitled "Young People F---ing" -- say the film is as racy as its title suggests and highlights everything that's wrong with public funding of Canadian films.

The website for the film -- which premiered at the Toronto International Film Festival last year -- promotes "YPF" as "a scathingly honest and hilarious portrayal of four couples, one threesome and a crazy night of sex."

A special screening of the film for MPs, senators, and staffers Thursday evening has created quite a stir. The film's distributor set up the screening so that politicians could judge the controversy over the film for themselves.

Some Conservative MPs say they won't attend an event featuring such a risque movie. The "YPF" controversy has already cost a young Tory staffer her job. She had apparently ordered a ticket for the film under her boss' name.

When her boss, Conservative MP Gary Goodyear's name popped up on a screening list for the movie, the staffer -- Victoria Van Eyk -- was let go.

She says she would not have been fired had she booked tickets for a less controversial film.

"The Conservative government doesn't support films like this," Van Eyk told CTV News.

While the Tory MPs stayed away, other politicians said it was important to see the movie before rushing to judgment.

"I am going to see the film. I think it's important that members of Parliament do. This has become the centre of a debate of what's appropriate to fund -- and what's not," said Liberal MP Mark Holland.

The controversy over the film has set off a larger national debate about government support for Canada's film industry.

Charles McVety, the president of the Canada Family Action Coalition, told CTV Newsnet's Mike Duffy Live the film is nothing more than pornography and he's outraged such films receive federal tax credits. McVety didn't say whether he has seen the entire movie, but noted that he had "seen enough of the film" and that it was not "about growing tulips in the spring."

McVety said the film is precisely the reason he supports a section of Bill C-10 which would restrict federal funding for productions deemed "contrary to public policy."

Critics in Canada and in the international film community say the bill could kill the Canadian film industry. Oscar winning director Ang Lee, who filmed "Brokeback Mountain" in Alberta, has said the bill is "almost like censorship."

"YPF" producer Steve Hoban said on Mike Duffy Live the film is not pornographic and that critics such as McVety are trying to impose their own tastes and values on the Canadian public.

"What you're saying," Hoban told McVety, "is you don't want the government tax credit to go into films you don't approve of."

Defending his film against McVety's repeated charges of pornography, Hoban said the larger issue is the importance of the tax credit to Canadian artists -- and all workers in the film industry.

If the tax credit is taken away "the entire Canadian film industry will suffer to the point where banks will no longer provide loans," Hoban said.

"(They) will not bank against the tax credit if it becomes a conditional thing that can't be determined until the film is finished."

Hoban said the tax credit is a minor investment which provides huge revenue returns to communities across the country.

As for "YPF," the recent controversy may help boost ticket sales. Not missing an opportunity for free publicity, Hoban managed to get the last word in to end his contentious debate with McVety. He noted the film will hit theatres on June 13.

With a report by CTV's Graham Richardson