Hobbit movies to be made in NZ

Peter Jackson’s Hobbit movies will be made in New Zealand after the government struck a deal with Hollywood studio Warner Bros. To end months of union tensions, Prime Minister John Key said.
Key agreed to give Warner sweeteners worth tens of millions of dollars and amend industrial laws in order to retain New Zealand’s coveted role as Middle Earth in Jackson’s long-awaited follow-up to The Lord of the Rings trilogy. In return, Warner Bros. Would use its marketing clout to promote New Zealand as a tourist destination, Key said after two days of tense negotiations with studio executives.
“I am delighted we have achieved this result,” Key told reporters, saying retaining the $500 million production, reportedly the most expensive film project ever, would save thousands of jobs in New Zealand.
Producers had threatened to move the two-part prequel to The Lord of the Rings elsewhere after a row erupted over union representation for actors on the set.

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