NZ film future hangs on Hobbit

If Warner Bros shifts production of The Hobbit films away from New Zealand, Prime
Minister John Key fears other Hollywood heavyweights will follow its lead.
Mr Key said a "big team of very heavy hitters" from Warner Bros was jetting into
Wellington on Tuesday to discuss the $US500 million production, which is in danger
of being moved off Kiwi shores due to a union row.
"The issue for me isn't so much The Hobbit movies, although that's of significant
concern, but it's actually the future of the film industry in New Zealand," Mr Key
told reporters in Auckland on Monday.
"If we can't make The Hobbit movies here because Warner Bros lack the confidence to
do so, the question is, will other production companies out of the United States and
other parts of the world choose to do so?"
The NZ prime minister met with a senior executive from Warner Bros on Sunday and
will be having further discussions with several executives on Tuesday.
The visit by Warner Bros heavyweights - which includes a meeting with director and
producer Sir Peter Jackson - was sparked by a bitter row over the two-film prequel
to the The Lord of the Rings trilogy erupted last month.
New Zealand's Actors' Equity union - which has close ties to Australia's Media,
Entertainment and Arts Alliance (MEAA) - called for a global boycott of The Hobbit
while they attempted to negotiate a minimum standards agreement.
Sir Peter refused, saying it would set an unacceptable industry precedent and
accused the unions of "bully boy" tactics.
Much of the debate has hinged on an obscure argument over whether workers on films
such as The Hobbit are employees of the production company, which entitles them to
minimum benefits, or independent contractors.
Actors' Equity subsequently withdrew the international do-not-work recommendation on
The Hobbit and gave an absolute assurance that there would be no disruption to
filming the two movies in NZ.
On Monday, Mr Key said The Hobbit had been used as a platform for promoting a
unionised workforce in NZ, and confidence in the local film industry had been
tarnished as a result.
"There's ... no question that the unions have caused great nervousness in the Warner
Bros camp," Mr Key said.
"I can't guarantee that the movies will be made as a result of the negotiations
we're having with them, but we're putting our best foot forward and seeing where it
takes us."
Mr Key said Tuesday's talks would involve "union issues", economic considerations
and ensuring Warner Bros felt it was backed by the NZ government.
"We've definitely got a chance of saving the movies, but nor would I say it's a done
deal by any stretch of the imagination on the back of conversations I've had with
them."
To coincide with the arrival of the Warner Bros executives, thousands of NZ film
industry workers mobilised on Monday to rally against The Hobbit films moving
offshore.
NZ actor Mark Harrison, who organised the rallies, received a phone call from Sir
Peter's assistant on the eve of the gatherings, offering a statement from the
Oscar-winning filmmaker.
"Turning us in to another state of Australia under the sway of a destructive
organisation carries the very real risk of destroying the great big heart that beats
inside our films," Mr Harrison read on behalf of Sir Peter to a crowd of about 400
people gathered in downtown Auckland.
"We don't open the door to an Australian trade union who will never put the interest
of Kiwis first and invest that union with the powers to destroy everything that we
have built."