Prime Minister says Hobbit movies to be made in New Zealand

Movie production on the Hobbit films by director Peter Jackson, will be made in New Zealand, Prime Minister John Key said Wednesday after meeting with Hollywood studio honchos from Warner Bros.

Rob Chandler

Future film endeavours had been endangered after a cinema workers' union demanded collective bargaining rights. It had not been able to do so for the blockbuster Lord of the Rings trilogy of films based on books by Biriths author JRR Tolkein.

"Making movies here will not only safeguard work for thousands of New Zealanders, but will also allow us to follow the success of The Lord of the Rings," said New Zealand's Prime Minister John Key after the meeting.

Earlier reports indicated that the studios were not convinced that they could film the next instalment of the Oscar-winning films, which drew 2.2 billion euros in ticket sales worldwide.

People around New Zealand rallied on Monday, holding signs in Wellington, the capital with a Tolkein quote, "Oft hope is born when all is forlorn."

While the New Zealand Actor's Equity pushed for collective bargaining with actors, the producers of the movies and some government officials said that this would violate national laws and treat negotiations as a type of price fixing.

Under the final deal, the government has increased massive tax breaks on the Hobbit films, which were already worth about 40 million euros, by 10 million euros and New
Zealand will also contribute seven million euros towards Warner's marketing costs.

Key also said that the New Zealand parliament will introduce legislation Friday clarifying laws covering workers in the film industry, in a bid to ensure the project did not face further union action.

The Hobbit films are slated to start shooting in February.