Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Hollywood seeks bigger NZ subsidy to offset weak greenback

Hollywood seeks bigger NZ subsidy to offset weak greenback

Oct. 7 (BusinessDesk) - Hollywood producers want New Zealand to up its 15 percent subsidy for big budget films to offset the higher cost of film-making here caused by the weak American dollar.

The producer of Avatar, James Cameron, made the comments on TVNZ's Q&A programme, following Prime Minister John Key's whirlwind visit as his guest to Los Angeles, where he visited major studios and attended a private dinner involving the heads of major US studios.

"I wasn’t privy to every discussion," said Cameron of the dinner, where Key circulated among the tables. "You know, there were discussions of possible increases in infrastructure, stage space, you know, the idea of possibly altering the rebate scheme to keep pace with the change in the dollar."

The New Zealand Herald reported Key as saying: "We will consider that."

Oscar-winning producer of the The Lord of the Rings and Hobbit movies, Sir Peter Jackson, had raised the suggestion in a pre-taped message for the group.

The message was that New Zealand needed to consider how to respond to its strong dollar, which has sat above US80 cents for some 15 months, hurting exporters trading in US dollars and eroding New Zealand's competitiveness as a film-making destination for American studios. The local currency's strength against the greenback largely reflects a slump in the value of the greenback as the US Federal Reserve prints money to try and kick-start its economy after the global financial crisis.

Australian Prime Minister Julia Gillard reportedly promised last week to consider a request that Australia raise its current 16.5 percent rebate to 30 percent.

The New Zealand scheme offers a 15 percent rebate, in other words a taxpayer payment, to the value of 15 percent of any film costing more than $15 million to make, with an additional 15 percent rebate on post-production costs.

Cameron said Key had pitched New Zealand as a "very competitive" place to make movies, despite not having the highest incentive scheme in the world.

"He felt that with a lot of the other factors – such as the English language, kind of the work ethic and skill of the crew, the resources that are available within the country, the locations, you have a core competence in terms of visual effects, the artisanry of set construction and so on – that all of those things add up to a very attractive full package."

Cameron said Wellington's film infrastructure was now at global industry standard, "competing directly with what's happening in Los Angeles or London."

"I think if some accommodations need to be made to foster that, I think the benefits to the New Zealand economy will far outweigh, you know, any potential deficit," Cameron said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news