Parliament was tonight working its way through a labour law change the Government says is essential to ensure The Hobbit movies are made in New Zealand, but was facing stiff opposition from Labour.

Employment law specialist Jim Roberts explains how the proposed law change spurred by The Hobbit saga will affect film industry workers.

The announcement The Hobbit will be shot in New Zealand has been greeted enthusiastically by Lord of the Rings fans all over the world.

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.

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.

Sir Peter Jackson has taken a shot at an Australian union for intervening in the NZ film industry and unsettling plans to film The Hobbit in this country.

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.