Kiwis Rejoice! “The Hobbit” To Stay In New Zealand

With production due to start in three months, “The Hobbit” is finally home in New Zealand — following a vitriolic dispute underlining the high stakes of mega-budget tentpoles. Wednesday’s settlement came at the end of a bitter one-month firefight with actors unions over a boycott that provoked Warner Bros. and director Peter Jackson to threaten to move “The Hobbit” to Europe or Australia. Making the deal required the intervention of New Zealand prime minister John Key, who announced at a press conference that he’d sweetened the terms enough for Warner Bros. to stay. Among other concessions, the studio was given a larger production subsidy. Key said his government plans to introduce legislation aimed at clarifying a key issue involving the use of independent contractors and employees in the film industry — even though the actors had called off the boycott a week ago and pledged that they wouldn’t disrupt “The Hobbit.” The NZ Actors Equity reiterated that pledge on Wednesday.
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