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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition World 'Hobbit' films to be made in New Zealand By RAY LILLEY,Associated Press - Wednesday, October 27 Send IM Story Print WELLINGTON, New Zealand – Two $500 million "Hobbit" movies will be made in New Zealand as originally planned, Prime Minister John Key said Wednesday, after two days of crisis talks with Hollywood studio executives. Senior executives from Warner Bros. and New Line Cinema won an agreement for a change in labor law and bigger tax breaks to keep the project in New Zealand after a dispute over pay and conditions for actors threw the production into turmoil last week. The studios had warned that unless the threat of labor action was removed, production of the two movies would be moved to another country. The dispute became a national issue in New Zealand, which received a huge boost to its tourism and film-making industries after "The Lord of the Rings" trilogy was made here. Hundreds of people marched in several cities Monday to show their support for keeping production in New Zealand. "The Hobbit" is J.R.R. Tolkien's prequel to "The Lord of the Rings." Key says the package includes an extra tax break of NZ$20 million ($15 million) for the studios, on top of $45 million already pledged by the government. A labor law change will be put to Parliament on Thursday "to ensure New Zealand law in this area is settled to give producers like Warner Bros. the confidence they need to produce their movies in New Zealand," he said. The change _ which applies only to the film industry _ ensures actors and others will be hired as contract workers, a method often used by production companies, not as employees. The union had wanted local actors and other production workers to be hired as full-fledged employees on union contracts. New Zealand will also contribute $7.5 million to help with marketing costs of the two films. "It's good to have the uncertainty (surrounding the movies) over and to have everyone now full steam ahead on producing these two movies," Key told reporters after two days of intensive talks in the capital, Wellington. Economists have said the overall value of producing the films in New Zealand would add up to 2 billion New Zealand dollars ($1.5 billion) to the local economy _ nearly 2 percent of annual gross domestic production. The crisis over production of the two movies unfolded after New Zealand Actors' Equity imposed an international "no work" boycott on the project last month after director Peter Jackson refused to hold talks on wages and conditions for local actors. The U.S.-based Screen Actors Guild and British actors joined the boycott. But last week, New Zealand Actors' Equity called off their boycotts and pledged to refrain from industrial action during production. Recommend Send IM Story Print Related Articles US-ENTERTAINMENT Summary Reuters - 52 minutes ago New Zealand reaches deal to keep "Hobbit" films Reuters - 52 minutes ago James Bond's Aston Martin goes on sale AFP - 1 hour 8 minutes ago Director Wenders considers film on priest abuse AFP - 2 hours 12 minutes ago Indian unknown, 17, cast as lead in Life of Pi film AFP - Thursday, October 28 News Search Top Stories Ahead of US vote, Republicans set for big gains Deutsche Bank posts sharp loss Conservation hope as vertebrates face extinction Pacific fisheries face collapse by 2035: study Iran begins fuelling Bushehr nuclear reactor More Top Stories » Related Full Coverage Hollywood NewsGet the latest Hollywood news All Full Coverage » Most Popular Most Viewed Most Recommended Spectacular unknown species found in Amazon Paul, World Cup 'psychic' octopus, dies in Germany LVMH increases Hermes stake Pacific fisheries face collapse by 2035: study Conservation hope as vertebrates face extinction More Most Viewed » Time, like all good things, may come to an end: study Too much TV psychologically harms kids: study Spectacular unknown species found in Amazon Iranian chocolate thief 'to have hand chopped off' Ancient galaxy is more than 13 billion light years away More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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