'Two issues' stand between Hobbit and NZ shoot

'Two issues' stand between Hobbit and NZ shoot

By Pattrick Smellie

Oct. 26 (BusinessDesk) – Two industrial law issues stand between The Hobbit being filmed in New Zealand and relocation to another country, following a meeting today between Prime Minister John Key and senior executives from Warner Bros, the film’s financial backers.

Key emerged from the two-hour meeting at his Wellington residence in time for evening television news bulletins to say that he hoped for a decision on The Hobbit by the end of the week.

“I’ve told them I’m going to Vietnam on Thursday,” said Key, while every day of indecision was costing Warners money.

He categorically ruled out more government financial assistance for the US$500 million two film, 3-D shoot, saying there were “a lot of noughts” between what New Zealand could offer as subsidies and the most generous alternative locations.

“If it was about the money, we would have walked away from it. They’re hard-nosed and, frankly, so are we.”

It was concerns over industrial relations that had made Warners baulk at filming in New Zealand, where it had previously already decided to film.

“If it weren’t for that, they would definitely be making it in New Zealand,” Key said.

He confirmed that “only those two issues” relating to the so-called Bryson case, a Supreme Court decision on the employment status of a contract model-maker on The Lord of the Rings, were at issue.

In that case, the contractor was deemed to have been an employee, notwithstanding his being employed on a contract for service. This created a wedge for the actors’ union push to seek new terms and conditions for actors working on The Hobbit that led to the current impasse.

Trade union assurances as late as this morning that the production would not be disrupted held little weight with Warner Bros, said Key, who did not anticipate consulting with the New Zealand Council of Trade Unions on any changes that ministers may agree in meetings overnight and in coming days.

Key said the government would not change New Zealand labour laws just to deal with The Hobbit, but indicated that any new policy could be made specific to the film industry.

(BusinessDesk)

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