Sydney Radio Segment: 28th October, 2010

The Hobbit stays in New Zealand

Drama surrounding the “Lord of the Rings” prequel “The Hobbit” reached its climax last night when New Zealand Prime Minister John Key went on national television to announce to the nation that he had secured a deal with Warner Brothers to keep the $670 million production in this country.  There were two main bones of contention: the amount of tax breaks New Zealand was willing to offer and the legal status of those employed domestically on the project.

The crisis was initiated weeks ago when the New Zealand actors union, at the behest of its Australian counterparts, threatened to boycott “The Hobbit” if their members were not considered employees as opposed to contracted labour.  Faced with what they saw as an uncertain industrial environment Warner Brothers responded by threatening to shift filming overseas, intimating that greater tax incentives were on offer elsewhere.

As the controversy grew the actors union came until huge pressure, with public rallies in all New Zealand’s main cities in support of keeping the film in this country.  The spectacle of hundreds if not thousands of New Zealanders grovelling before a multinational corporation was not one that filled everybody with pride but it perhaps reflects the majority of public opinion.  A groundswell of hostile, anti-union sentiment has played into the National government’s hands.

Key has cut a deal with Warners that gives the company a further $34 million dollars in tax breaks and $10 million in marketing support, bringing the total taxpayer support for the film to $100 million.  He will also introduce new industrial legislation into the House today under urgency, effectively changing the labour laws that govern film workers in line with Warner Brothers’ demands.

The only dissenting political voice against all this has come from the Green Party, with co-leader Russell Norman calling the law change “outrageous”.  National is expected to get the legislation passed with the help of the ACT and United Future parties.

Coming Attractions:

Staying with politics, but on a lighter note, a news story from that hotbed of quality debate, the council chambers of Timaru.  The first full meeting of that wee town’s new governing body was reduced to fits of laughter earlier this week when councillor Richard Lyon made a verbal faux pas of the first order.  Addressing a very important motion to amend a motion - such are the fascinating machinations of local government - Lyon was undone by his own attempts at oratorical eloquence, calling the council “an ongoing thing and a living beast,” then adding the observation that  “It is an ongoing orgasm”.

The serious demeanour of the meeting was shattered, but Lyon carried on manfully.  His contribution was undoubably the dramatic climax of the meeting.