Despite saying a couple of days ago that they definitely wouldn’t pay money to ensure that the two-part Hobbit flicks stayed in New Zealand, the country’s government has pretty much done just that, and as a result, it appears the production will stay in the country, rather than movie to eastern Europe or the UK.
In case you haven’t been following the story, after a NZ acting union organised a boycott that would have prevented most actors from signing up for the movie, both Warner and Peter Jackson issued statements saying that the union’s actions had significantly weakened the studio’s faith in the country, and caused them to think about moving the production elsewhere.
Even with the boycott ending, the studio still wasn’t sure and a couple of days ago a delegation of execs headed to NZ to make a final decision, which included meeting top government officials. While the result of those talks wasn’t known at the time, Prime Minister John Key has now announced during a press conference that they’ve negotiated a deal with Warner that will keep the production in New Zealand, but that it hasn’t come cheaply.
According to THR, the deal will cost the NZ government up to $25 million in extra rebates and incentives to the studio, and will also see them introduce legislation that would clarify the employment status of film industry workers. While the PM wouldn’t say exactly what this legislation was, it’s presumed it will make unionising the film industry even more difficult.
While it’s difficult to imagine most countries bending over backwards quite so much for a film company, you shouldn’t underestimate how much the NZ national identity has been tied to Middle Earth ever since the Lord Of The Rings films, to the point where marches and protest that attracted thousands of people were organised in three NZ cities last weekend, so people could show their support for keeping The Hobbit in the country. It’s also makes economic sense, as while the government may lose $25 million initially, the country has made hundreds of millions in tourism out of its association with Lord of the Rings, and will make a hell of a lot more from The Hobbit. And in a country with a population of only 4 million, Middle Earth related income can make up a suprisingly large part of the economy. The government may have lost some cash and a little sovereignty, but they are likely to come out the winners in the long run.