Movie maker Sir Peter Jackson says New Zealand needs to keep up with international competition if it wants to continue making big budget movies here.
His latest film, The Hobbit: An Unexpected Journey, has its world premiere in Wellington tomorrow.
The movie was made here, but Sir Peter told Radio New Zealand Warner Bros was close to taking production overseas.
He said the industry needed tax incentives that other countries offered.
In 2010 the Hobbit trilogy was guaranteed a New Zealand home when a deal between Warner Bros and the Government saw $34 million in tax breaks for the industry, help with marketing costs and an urgent change to labour laws.