The fate of The Hobbit movies hangs in the balance as lawyers representing the Government and producer Warner Brothers talk through possible changes to labour laws.Prime Minister John Key and a team of senior ministers met Warner Brothers' execu
The fate of The Hobbit movies hangs in the balance as lawyers representing the Government and producer Warner Brothers talk through possible changes to labour laws.
Prime Minister John Key and a team of senior ministers met Warner Brothers' executives for more than two hours yesterday without resolving the problems that have made the movie company consider taking the $630 million production to another country.
"I would say at best it's still very much 50-50 and I'm not overly positive," Mr Key told reporters.
"They're not here with a ransom note, or putting a gun to our head...but they're out of here if we can't give them clarity, no question about that."
The producers are worried about legal definitions of contractors and employees in New Zealand law, which they think could be used against them.
They have also been spooked by union action and the international "do not work" order -- since rescinded -- that was placed on the movies.
"We will have to make an assessment about whether we think a clarification in the law would assist New Zealand economically," Mr Key said.
"If we do, we might make some changes."
He is trying to save the $2.8 billion movie industry, because there are fears that if Warner Brothers pulls out other big producers will also stay away from New Zealand.
Mr Key will meet the executives again before he leaves for Vietnam on Thursday, and said he expected Warner Brothers would make a decision by the end of the week.
Although the Government appears willing to change labour laws to clear up the problem over contractors and employees, it isn't going to increase the 15 percent tax break for big movies.
Other countries are reported to be offering up to 30 percent, and Mr Key said the gap was too big to bridge.
"It's simply too large, I think they understand that position," he said.
However, he didn't rule out some sweeteners "around the margins" to make the deal more attractive for Warner Brothers.
He said the main issue was industrial uncertainty.
"The reality is that if it wasn't for the industrial action they would have pulled the trigger on these movies some months ago," he said.
