The film that Helen Kelly and Labour didn’t want

Keeping in mind, most of the money was spent in New Zealand, this phenomenal success was well worth some tax and employment law changes.

Making the movie trilogy?The Hobbit?has cost more than half a billion dollars so far, double the amount spent on the three movies in the “The Lord of the Rings” series.

That figure includes the major 266 days of filming with actors that was completed last year, although it doesn’t include an additional two months or so of “pick-up” shoots done this year. There will likely also be additional post-production costs as the next two movies are completed. ?

Through March 31, production had cost NZ$676 million New Zealand dollars, according to financial documents filed Friday.

Distributor Warner Bros. and director Peter Jackson may consider it money well spent. To date, only the first movie in the latest trilogy has been released.?The Hobbit: An Unexpected Journey?took in just over $1 billion at the box office.

The documents, filed online by New Zealand’s Companies Office, provide a rare insight into the exact costs of a blockbuster Hollywood production. Often studios release only rough estimates, if anything.

When making the trilogy, Warner Bros. created a wholly-owned New Zealand company it named “3 Foot 7 Ltd,” in reference to the diminutive stature of the movie’s hobbits and dwarves.

Company documents show that New Zealand taxpayers have so far contributed NZ$98 million to the trilogy through an incentive scheme designed to attract big budget movies to the country. Such schemes are common among US states and foreign countries that compete for movies.

We’re competing in an international marketplace, and the employment, economic and tourism benefits are well in excess of $98 million.

As Labour is so fond of saying “Where are the job?”. ?Well, there they are!

 

Source: NZ Herald

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