Sparks fly in 'Hobbit law' debate

Prime Minister John Key announcing The Hobbit deal yesterday. Photo / Mark Mitchell

The law change that was part of the deal to clinch The Hobbit for New Zealand was still being heatedly debated when Parliament adjourned last night.

The change will create a rule for film workers, ensuring that if they sign up as independent contractors they cannot subsequently take legal action and claim they are employees.

The Employment Relations (Film Production Work) Amendment Bill, dubbed the "Hobbit law", was part of the pact hammered out in negotiations between the Government and Warner Bros this week to ensure The Hobbit is filmed in New Zealand.

The deal also includes $15 million more in tax rebates and a $10 million contribution to the marketing budget for the movies.

While all parties in Parliament support The Hobbit staying in New Zealand, the law change is more controversial.

Labour accused the Government of selling out to a foreign company and using The Hobbit as a Trojan Horse to make unnecessary changes to employment law.

In return, National put the blame on the unions, saying The Hobbit was ready to film in New Zealand eight weeks ago but was derailed by the unions blacklisting it.

The bill is being debated under urgency so it can take effect almost immediately. It is not retrospective and will not apply to existing contracts. If the bill was going through usual parliamentary processes, The Hobbit producers might have had to wait six months before entering into contracts which it covers.

Yesterday, Labour and the Greens objected to it being pushed through under urgency, saying that gave the public no chance to have a say.

Labour's economic development spokesman, Trevor Mallard, said it was a "patch-up" and the legislative change was unnecessary.

"What does it make our democracy look like when a group of people come from offshore, shake us down for millions of dollars and demand our labour laws be changed?" he said.

"It opens us up for anyone who wants to shake us down."

But Economic Development Minister Gerry Brownlee blamed the unions, saying the move to ban work on the films had caused "irreparable damage" to the union movement. He said the industry paid well and collective contracts would not work.

"I don't believe for one moment any international stars were running round saying, 'I can't wait for [union chief] Mr Whipp to sort out a collective for me to sign up to'."

Mr Brownlee later said Warners had not made any requests or put pressure on the Government to change the law. He denied the Government was an easy touch for large multinationals.

"Large multinational companies make requests of Government all the time and we generally don't even engage. But we are talking about the incomes of thousands of New Zealanders who will benefit from The Hobbit being here. For that reason we had an obligation to do what we could to keep it in this country."

Mr Brownlee said the law change was critical to guarantee there would be no disruption of The Hobbit.

"It was the crucial point for Warners. They need to have that certainty. This production is going to run on for two or three years and they need to be certain the arrangements they enter into with people ... will be sustained throughout that time."

THE EFFECT OF THE LEGISLATION

What the law change does:

Changes the Employment Relations Act so workers in film and video game productions are not legally deemed "employees"' unless specifically employed as such. It does not cover TV productions.

Who does it cover?

Actors, voice-over actors, stand-ins, body doubles, stunt workers, extras, singers, musicians, dancers, and entertainers and others involved in the production, whether on or off set, in any other capacity.

Why?

Because Warner Bros asked. In a Supreme Court ruling in 2005, a model maker on the Lord of the Rings movies, James Bryson, was deemed an employee even though he was hired as a contractor. Employees have minimum guaranteed entitlements - such as sick leave and annual leave - which contractors do not get.