Legislation clearing the way for the filming of The Hobbit to stay in New Zealand has been passed by Parliament under urgency, in a move opposition MPs have attacked as undemocratic and rushed.
Prime Minister John Key announced on Wednesday the Government had reached a deal in which it offered Warner Bros bigger subsidies to make the Hobbit films in New Zealand, costing it another $NZ33.5 million, and agreed to the labour law changes.
The Employment Relations (Film Production Work) Amendment Bill was introduced to Parliament on Thursday afternoon.
The legislation clarifies the difference between an employee and an independent contractor in the film industry.
Green MP Keith Locke told Parliament that when consultation on law changes is only held with one party, and all other New Zealanders are shut out, that's an abuse of democracy.
Several Labour Party amendments to the legislation were voted down on Friday, including one that sought to change the title of the bill, replacing the phrase Film Production Work, with 'As Requested by Warner Bros', and adding an expiry date of 8 November.
Tax breaks 'less generous' than Rings films
The Government says it will give details in coming weeks of the more generous tax breaks for The Hobbit movies which formed part of the deal to enable the two films to be made in New Zealand.
Part of the deal with Warner Bros was a commitment by the Government to broaden the types of expenditure the US studio can claim against in New Zealand, which gives it more generous tax breaks.
The Government has agreed to an extra $US7.5 million in tax incentives for each of the films, increasing the total rebate to about $NZ85 million.
However, Mr Key revealed the tax breaks extended to The Hobbit's backers are far less generous than those for the Lord of the Rings films, which received more than $NZ100 million.
Mr Key says he is confident the Hobbit deal is good value for New Zealand compared with the Rings trilogy.
