Reader Pietro Poretti points me to this article indicating that subsidies and other incentives for movie production are alive and well:
The Hobbit will be made in New Zealand, Prime Minister John Key has announced.
He said at a press conference this evening that new labour laws would be introduced to Parliament tomorrow to support this. It will apply only to the film industry.
Mr Key also announced The Hobbit will get a $20million ($15m US) tax rebate - US$7.5m per film - and said he would be surprised if the films were the last to be made by Warners in New Zealand.
The Government will also offset U$10m of Warner Brothers' marketing costs. In exchange Warner Brothers will work with the government to promote New Zealand as a film production and tourism destination.
Marketing from the movies will be worth ''tens of millions'' to New Zealand, Mr Key said.
The future of the $670 million production hung in the balance after an actors union issued a no-work order on the films last month.
Talks were held overnight with studio executives from Warner Brothers to resolve concerns about industrial laws in New Zealand.
But the studio was also holding out for a bigger tax subsidy from the Government.
The film's executive producer Sir Peter Jackson would "be a very happy camper" Mr Key said at the announcement.
The movie will premiere in New Zealand and the Government would plan a major campaign promoting the country to coincide with its launch, Mr Key said.
"It's good to have the uncertainty over, and to have everyone now full steam ahead on this project."
He said he thought the Government had got the package right. A memorandum of understanding with Warner Brothers was signed at around 7pm tonight.
It was "unacceptable" to the New Zealand public to have the film go offshore, he said.
He believed the new legislation would not take rights off workers.
See here and here for previous posts on this topic.
