Jackson says thanks for Hobbit rescue

Filmmakers Fran Walsh and Sir Peter Jackson. Photo / Supplied

Filmmakers Sir Peter Jackson and Fran Walsh have thanked the Government for stepping in to make sure the filming of The Hobbit movies stays in New Zealand.

In a press release from their company Wingnut Films stating they are "thrilled" the production is remaining in New Zealand, Sir Peter and Ms Walsh say: "We are grateful to the Government for introducing legislation which shall give everyone in the film industry certainty as to their employment status.

"This clarification will provide much needed stability and reassurance for film workers as well as investors from within New Zealand and overseas."

The Government has agreed to up to $34 million in tax breaks and help with marketing costs, as well as an urgent change to labour laws after two days of negotiations.

Sir Peter also thanks Warner Bros and New Line Cinema for "their continued commitment to New Zealand" and the "film technicians, actors and fans who came out in support".

To the thousands of people who took the time to write and let us know they were with us - thank you. It made all the difference."

All partner parties supporting National in law change

Meanwhile, National has support from all its partner parties in moving to clarify industrial relations laws within the film industry, Economic Development Minister Gerry Brownlee says.

The Government is this afternoon pushing labour law amendments through Parliament under urgency as part of a deal with Warner Bros to ensure the two Hobbit movies are filmed in New Zealand.

Mr Brownlee said the bill would clarify that people employed as contractors on film productions were contractors and couldn't use courts to change their status to employees.

Prime Minister John Key and ministers spent Tuesday and Wednesday in crisis meetings with studio representatives to convince them to keep filming in New Zealand - something which looked shaky after actors' unions threatened industrial action over terms and conditions.

Warner Bros also pushed for a bigger tax break than the standard 15 percent for big movies, and requests for more sweeteners were partially met with a commitment by the Government to provide a $13 million marketing subsidy and an extra $20m tax break for the $630 million films.

Labour and the Greens have welcomed the fact the films will stay here, but expressed outrage that the Government had bowed to pressure from a business to have employment legislation changed.

The ACT Party and United Future supported the Government's moves, and Mr Brownlee said in Parliament today that the Maori Party had also come on board in support.

That gives the Government a clear voting majority of 69 to 53.

Mr Brownlee earlier told reporters the Government had been forced to offer more incentives than would have been the case "had there not been that dreadful seven week period of threat and industrial action".

The Australian-based Media, Entertainment and Arts Alliance (MEAA), and New Zealand Actors Equity (NZAE), which initially rattled the cage with its demands, withdrew before Warners representatives arrived here and gave an assurance there would not be industrial action during filming.

The unions avoided commenting on the stoush today, but said they welcomed the news a deal had been negotiated to keep the films here.

- NZ Herald staff, NZPA