A union leader has berated the Govt for selling the "fundamental rights" of workers to convince Warner Bros to keep The Hobbit in NZ.

Up to $34m in tax breaks and help with marketing costs and a change to labour laws are the price of keeping The Hobbit in NZ.

Two industry heavyweights on opposing sides of The Hobbit row have welcomed confirmation the movies will be shot in NZ.

What kind of a country sells its democratic soul for 30 pieces of silver? The answer is a small one. And one where the economy shows little sign of recovery in the short term.

Filming of The Hobbit will stay in New Zealand after an agreement was reached between the Government and studio executives at a crisis meeting today.

Prime Minister John Key will be holding a press conference this evening to discuss the future of The Hobbit.

The Govt is continuing to negotiate with Warner Brothers on The Hobbit films but does not have an open chequebook.

Sir Peter Jackson has produced a letter which he says counters claims by NZ Actors' Equity that they sought a meeting with the producer prior to blacklisting The Hobbit.

A union leader is concerned a precedent could be set which would challenge New Zealand's sovereignty if the Government changes labour laws to entice Warner Brothers to film The Hobbit in the country.

Every employee in the land should be concerned at the hammering the actors have got for daring to ask for meaningful negotiations.

Only a new law will give Warner Bros the guarantee it wants on labour laws to keep The Hobbit in NZ, an employment law expert says.

John Key has emerged from crisis talks with Warner Brothers executives over the filming of The Hobbit, saying there is still no decision on where filming will take place.

John Key says he has made it clear to Warner Bros that the Govt cannot go to extreme lengths to keep The Hobbit films in NZ.

The union behind an actors' boycott of The Hobbit has given an unconditional guarantee that it will not take any more industrial action against the film production.

Prime Minister John Key, who will meet high-powered executives from Warner Brothers in Wellington in the next two days, thinks there is a "50-50" chance of The Hobbit being filmed in New Zealand.

The head of the company that produces Outrageous Fortune believes the fallout over The Hobbit has made actors Robyn Malcolm and Jennifer Ward-Lealand "damaged goods".

A video clip has highlighted the anger and high stakes involved in the row over The Hobbit.

TVNZ dished out an average of almost $50,000 each to 44 staff whose contracts were "terminated" in the past financial year.

Warner Bros and actors' unions were ready to bury the hatchet at the beginning of this week, a series of emails shows.

Bosses are calling for a guarantee the industrial disputes threatening to derail The Hobbit won't be repeated in the 2011 Rugby World Cup.

Warner Brothers have confirmed that they are considering alternative locations in which to film the two Hobbit films.