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Don Groves is a Deadline contributor based in Sydney.
The leader of NZ First political party has demanded Warner Bros. repay the $NZ67 million ($US56 million) subsidy it got from the New Zealand government for Peter Jackson’s The Hobbit after the first film in the trilogy grossed more than $NZ1 billion worldwide. Winston Peters disputed Prime Minister John Key’s claim that the productions had created an extra 3,000 jobs, alleging that figure was plucked from the air. A spokeswoman for Key insisted 3,000 jobs was “a minimum” and did not count flow-on jobs created for businesses and communities that supplied and serviced The Hobbit. In correspondence with the government obtained by NZ First under the Official Information Act, a rep of Jackson’s Wingnut Films described 3,000 jobs as “a good number” and said there were 1,000 people on payroll at the studio, 1,000 at Weta Digital and almost 1,000 at Park Road Post, Weta Workshop and related companies and casual contractors. NZ First has seven seats in parliament and Peters was a Minister outside Cabinet in the Labour-led coalition government from 2005-2008. “The Government stands by its commitment to attract and retain the film industry in New Zealand in order to reap these significant economic benefits,” Key’s spokesman said. Warner Bros. had no comment.
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The guy who demanded it probably was from the Tolkien Estate. )
Ridiculous comments that the hobbit should repay its subsidy.
Since The Hobbit has come out New Zealand’s entire tourism campaign has changed to ’100% pure Middle Earth’, NZD exchanges are up over 25% in England alone (compared to last year).
Over 16,000 people visit New Zealand from England per month… The subsidy will more than be made up in additional tourism within a year and then there are two more films to come out over the next two years.
Thanks to Peter Jackson and The Hobbit production New Zealand will be reaping the rewards of this hit for years to come if not decades.
This guy needs to get his head checked.
Interesting, as I live in London and have never ever even once heard of anyone going to NZ to see Hobbitland. I don’t think it has raised any manner of English tourism rates. I know people who go there to visit their family only. It’s so far away and so expensive, it is ludicrous to think people from England go to NZ for that.
At any rate, Warner Bros. is the devil and I doubt they will have anything to say for themselves. They make so many films with contractors and outsourced companies across the world-wherever they get the subsidies for doing so. Subsidy agreements with governments provide as much as 30% to Warner Bros. It’s not in their best interest to work outside the U.S.A. unless they get their subsidy, which is always a substantial profit, guaranteed.
It has caused the ruin of the fx business.
I wish Wingnut would have created the films without the involvement of the all powerful Hollywood film groups such as Warner Bros. There is a reason they are around all these years and that is because they with a small handful of other conglomerates try to take all the business and clean up any competition. Please Wingnut Films, fly free of them. You don’t need them. Take the subsidies and distribute in the U.S. for yourself. The U.S. would be insane not to distribute and show their films and there is a strong demand for them.
In addition to my previous comments The Hobbit has yet to pass $1Billion worldwide, it has yet to pass $900Million worldwide.
It will eventually reach a Billion but his misrepresentation of the facts renders the argument mute.
Moot
New Zealand dollars.
How can you expect to attracted future movie productions when you go after the studio’s to repay your subsidy just because it was a successful film? Idiots!
Forget the 3,000 jobs created by shooting the film!
How much extra money has New Zealand made in tourism since the first Lord of the Rings movie came out? Every one of those films is the biggest tourism ad that New Zealand has ever had or could ever have.
Warner Brothers should demand a percentage of the increase in tourist dollars that LOTR and Hobbit have brought NZ.
Probably worth noting that Winston Peters is like the drunk uncle at a wedding, noone respects him, he is clueless and noone is quite sure who invited him. The liklihood of the government listening to Peters and asking for subsidies back is like me asking the tooth fairy for my front teeth back again. Also, NZ First is a tiny party with little or no power, not worth even mentioning this statement, it is publicity mongering for a faeces stirrer.
New Zealand Paid money to confirm forever it’s role as JRR Tolkien’s Middle Earth, It is Likely never to reach these heights again.
We are set to Immortalize JRR Tolkien in one of our Mountain Peaks
and our Tourism Industry will get a long term boost and a short term Boom, but the Average Kiwi sees it all as a bit of passing fun.. when the party is over they will start counting the proverbial Beans.