NEW ZEALAND GOVERNMENT

You are required to write an essay in which you answer following question.

1. Why did the New Zealand government offer Warner Brothers incentives to film “The Hobbit” in New Zealand? Analyse how this will affect the New Zealand film industry and New Zealand society.

In your essay you will:

1.analyse the impact of an issue by applying relevant economic and social science models, concepts and theories from the GBE paper.

2.draw on secondary research to support your analysis with relevant examples and evidence from authoritative sources.

3.demonstrate in your analysis that you have applied aspects of the critical reading framework to your   research.

4. use APA style (6th ed.) in-text referencing and provide a correctly formatted Reference List.

Essay structure (do not use these or othere sub-headings in an essay but should be written introduction, discussion and conclusion as a sub- headings)

 Introduction ( 2 paragraphs)

-Your opening paragraph(s) introduces the topic and shows how you will address it

-Indicates the key point(s) of your essay( your proposition)

Discussion ( 9 paragraphs)

-The paragraphs that following the introduction provide a discussion of each of your key points ( one paragraph each)

-These include concepts and theories from economics and social science to help explain your analysis and argument

Conclusion ( 1 paragraph)

-Draw main points together and discuss your fidings from each paragraph and show how you initial proposition.

-Do not include any new material here for further discussion

SOLUTION

Introduction

The article proposes to analyse why the New Zealand government offered incentives to Warner Brothers to film the movie in the country. We make use of economic and social science models to analyze how this will affect the New Zealand film Industry and the New Zealand society. There has been quite a drama played out in New Zealand’s political base regarding the filming of the Warner Brothers’ ‘The Hobbit’. The issue has exposed quite a few critical responses to whether New Zealand Inc. Is nothing but a political institution? The Hobbit issue raises concerns about government’s attitude of entertaining businesses considering the handsome returns and not its impact on workers.

The Hobbit is discussed no less than a national issue and negotiations are met straight with the Prime Minister Watkin, T., (2010).  The article will analyze how deals like the Hobbit that promises large dividends and salaries, bonuses to senior management and heavy taxes to government, actually damage the foundation of the New Zealand society. Despite the row over pay and conditions with CTU, the Prime Minister John Key confirms the filming in October 2010, asserting that it will have a beneficial effect on the country’s economy Child, B. (2010). We will discuss the view of economists and social proponents on the unexpected journey of the Hobbit.

Concerns of New Zealand People

Prime Minister’s approval for the Warner Brothers caused people to protest across the country. People and unions raised concerns that New Zealand could lose out on big-budget projects by predecessors who made it look like a perfect location for filming. It cannot be said with a certainty that ministers were forced to offer incentives to Peter Jackson, but union laws were still being changed to settle the row between the Warner Brothers and the union of the New Zealand’s Actors Equity to ensure that country will not lose the productions.  However, the government gave Warner Brothers up to $20 million additional in tax rebates on the Hobbit movies apart from $65 million that they had already won before. Warner Brothers also received $13 to promote New Zealand through a short film advertisement. It passed a law to ensure that no contractors will be allowed to negotiate collective agreements to claim the rights of employee. The only party who is benefitted is the Warner Brothers who got additional $20 million and the actors and other workers on contracts remain peasants living feudal lives. Welch, D. (2011: January 5).

Concerns of CTU

A union leader of CTU criticized the government for enabling Warner Brothers to shoot in New Zealand at the cost of “fundamental rights” of the workers. Besides, the Hollywood company has been given about $34 million in tax breaks and changes in labour law to cut on their marketing costs. CTU president Helen Kelly alleged that labour law changes were mere opportunistic. She further criticized the government by saying that it is just a matter of say of a few groups of workers on the setting terms and conditions Kelly, H. (2010).

However, Prime Minister Keys assured the legislative changes will apply not only to the Hobbits production but also to the New Zealand’s film industry. It will ensure that film workers will have certainty of the employment with the production and the contractors will not be able to argue later that they were employees.

Dispute with Workers’ Union

National director of the Australia-based Media, Entertainment & Arts Alliance, Simon Whipp, said that people who work as contractors with the production can be sued by it for quitting the work, however, if producer make a change in terms with contractors they could do so giving just a day’s notice. He said the association is deeply concerned about not having the fair working standards for the workers, as are in the international framework Knight, K. (2010).

Undermining Immigration Process

CTU says that just to allow foreign actors work in the Hobbit movies, the government undermined the immigration process. Director of the Hobbits, Sir Peter Jackson raised a key concern that the actors union of New Zealand can vet out the foreign actors. However economic development minister Gerry Brownlee ruled out the concern giving Sir Peter Jackson an assurance that there will be no problem in bringing the foreign actors. There have been several cases when immigration ministry approved access of foreign actors despite non-approval from the Actors Equity. Therefore, the New Zealand Actors Equity has accused government of undermining immigration process time and again. Ward-Lealand said, these immigration rules can put at risk the employment of the New Zealand’s worker and entertainers. However, Brownlee justified the rules by saying the visa processes cannot be subjected to veto by any union. Hartevelt, J., and Chapman, K.(2012).

Commercial Boost for the Country with the Hobbits

Prime Minister states that filming of the Hobbits attracted considerable promotion of tourism marketing, it even protected the national brand in the international sphere. He is proud of the business deal thus met. It emerged the public sector as a economic leader. The economists of New Zealand estimated that in-flow of economic benefit from the film would be as much as $1.5 billion. The fact served as the biggest driving factor for the Prime Minister Keys to step in to make sure that New Zealand becomes the hosting country for the movies competing with other international location contending for this $500 million production, Kodoom, (2010: May 7). The Hobbit contributed over $2.4 billion to the economy through New Zealand’s film industry.

Restoration of New Zealand’s Film Industry

Prime Minister’s decision to allow the filming of the Hobbit had actually restored the financial stability of the New Zealand’s film industry. Keys assured that decision of hosting the filming of the Hobbit movies will safeguard the interest of numerous New Zealand workers. Besides, it will also repeat the economic success for the country as occurred after the success of the Lord of the Rings Child, B., (2010).

Economic Reasons Led to Offering Incentives to Warner Brothers

It is just the economic reason that John Keys agreed to spend US$25 and also made legislative changes in the labor laws to strike a deal with Warner Brothers. It is also argued by critics that if ever the Hobbits was pulled out from New Zealand it would not have been because of pressure from the actors union but because filming it any other country would have been more expensive for the Warner Brothers.

Past Success Record of International Films Shot in New Zealand

Big-budget films like Avatar, The Chronicles of Narnia, 10, 000 BC contributed to pumping up the country’s revenues up to 15 percent in the successive years till 2011. The movies helped increasing the revenue of the country despite the global recession.

Future Implications and Prospects

The economic aspect has lured the New Zealand government to make The Hobbits stay in New Zealand competing against offers made by other countries to host the production. It has considered the success of the trilogy of the Lord of Rings, so offered legislative changes, $20 m tax break, and spent a total of $75m to get the film shoot in the country. The government and Warner Brothers have also agreed to work in strategic partnership for long term. It will promote both tourism and film industry of New Zealand. As a part of this partnership, the government further offered US $10 to Warner Brothers as marketing costs.

Justification of Legislative Changes in Labour Law

The Employment Relations Act 2000 underwent changes in the New Zealand parliament to support the terms and conditions of the Warner Brothers to film the movie in the country. The bill provided for making workers of the film industry independent contractors, not giving them right of an employee. It changed the definition of an employee by excluding all film production workers NZHerald, (2010). The labour minister Kate Wilkinson stated that the government cannot lose the opportunity of the thousands of jobs, which would result with the production being hosted in the country. He said, for the interest of talented New Zealand entertainers and the film Industry, this big-budget production is a significant economic step Reuters, (2010). The Prime Minister Key said the new labour law recognizes and distinguishes contract workers and employees in a movie production.

Conclusion

Critics put that in winning the Warner Brothers deal of filming the Hobbit movies in the country emerged the government as just a business host for an American client. It cost $25 million tax break and labour law amendment to get the Hobbits film in New Zealand. The essay analyzed all the aspects of the debacle, CTU and Warner Brothers row and the government supporting the deal to conclude why it offered incentives to Warner Brothers. It is declared outright that government did not want to lose the opportunity of adding $670 million production to the economy. It settled the concern of Warner Brothers about the actors equity by amending the law citing that it is for the interest of the local film industry workers. The project did boost New Zealand tourism by manifold with earlier big Warner Brother projects like the trilogy of the Lord of Rings. Despite protests from CTU and opposition the government did not let go the deal as it could have been fatal for the local film industry and the economy as a whole.

References:

Child, B. (2010).The Hobbit will stay in New Zealand. The Hobbit: An Unexpected Journey.  The Guardian.

Hartevelt, J., and Chapman, K.(2012). Union: Hobbit undermined immigration process . Stuff.

Kelly, H. (2010).Helen Kelly: The Hobbit Dispute. Scoop Independent News. Available online at: http://www.scoop.co.nz/stories/HL1104/S00081/helen-kelly-the-hobbit-dispute.htm .

Knight, K. (2010). The Hobbit’s whipping boy talks . Stuff.

Kodoom, (2010: May 7). Massive economic impact of entertainment: Hobbit in New Zealand, Disney in Turkey. Available Online at: http://features.kodoom.com/en/entertainment/massive-economic-impact-of-entertainment-hobbit-in-new-zealand-disney-in/v/2301/.

NZHerald, (2010). The Hobbit law – what does it mean for workers? Published on Oct 28, 2010.

Reuters, (2010). New Zealand passes law to keep the Hobbit films. The Guardian: Released on Oct 10, 2010.

Watkin, T., (2010). The Hobbit exposes the failings of NZ Inc.  Available Online at: http://pundit.co.nz/content/the-hobbit-exposes-the-failings-of-nz-inc.

Welch, D. (2011: January 5). The dummy’s guide to the Hobbit dispute. Idealog.

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