Dollar drives away film-makers from Auckland

Auckland's film industry is in its worst slump in nearly a decade - and the future looks increasingly grim.

New Zealand used to be popular with low-budget overseas movie and television companies but the high exchange rate and lack of tax incentives means many are heading elsewhere.

Auckland has been hardest hit. One of its largest film companies, The Film Factory, has lost the rights to the second series of popular American show The 4400 because it could be filmed cheaper elsewhere.

"No doubt last year was the worst for Auckland - a lot of people left the industry," said Film Factory head Paul Carran, whose company had, until recently, been without work for 20 months.

"I know people who left the industry and just gave up - they said it's too hard. I know people who have re-mortgaged their houses to live and they're struggling to pay back that debt and just catch up again."

While Wellington continued to attract big-budget films such as King Kong and The Lord of the Rings, Auckland's primary market had generally been cheaper productions such as Xena and Hercules.

Because of the higher dollar, these productions were going to countries such as Canada, the Czech Republic and Mexico - which offer tax incentives.

The former executive manager of Film Auckland, Tash Christie, acknowledged the problem, saying the industry had fallen on lean times.

The high dollar had discouraged overseas television movies and programmes - the mainstay of the industry - from filming here.

"That has a huge impact on the industry in general because it tends to be the bread and butter - the type of work that keeps people going when those big-budget features aren't coming in," Ms Christie said.

Mr Carran has secured a film starring Joely Richardson but after that, there was nothing.

He suggested the 12.5 per cent tax rebate on productions worth $15 million or more be extended to everyone.

"All the Government is talking about is big overseas movies but that does not keep the local industry busy by a long shot," Mr Carran said. "Film and television [have incentives] all over the world. If the Government wants us to grow, then they have to face that fact and they don't want to.

"There's an awful lot of nonsense that goes on down in Wellington - they're just excuses for saying no."

Tomorrow Cabinet considers proposals to change the tax rebate scheme. But well-placed sources told the Herald on Sunday changes were considered unlikely.

But Tim Thorpe, head of the New Zealand Screen Council, was more optimistic.

"Certainly there is a bit of a lull. But there are things happening out there - I don't think it's time to wrap the noose around our neck yet."

- HERALD ON SUNDAY