Peter Jackson, who is to direct the two-part adaptation, had threatened to move it to the UK or eastern Europe following a dispute with actors' unions.
The altercation became a national issue in New Zealand, which received a massive boost to its tourism and film industries after The Lord of the Rings trilogy was made there. Marches were staged in several cities to campaign for keeping the project in the country.
New Zealand prime minister John Key (pictured) has held two days of crisis talks with senior executives from Warner Bros and New Line Cinema.
Mr Key announced at a press conference today: "An agreement has been reached between the New Zealand government and Warner Bros that will enable the two Hobbit movies to be directed by Sir Peter Jackson to be made in New Zealand.
"I'm delighted we have achieved this result. Making the two films here will not only safeguard work for thousands of New Zealanders, it will also allow us to follow the success of the Lord of the Rings trilogy and once again promoting New Zealand on the world stage.
"As part of the arrangement the government will introduce legislation tomorrow into parliament to clarify the distinction between independent contractors and employees as it relates only to the film production industry. It is this clarification that will guarantee the films are made in New Zealand."
The change means actors and others will be hired as independent contractors not as employees. The union had wanted local actors and other production workers to be hired as employe...
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[Source: Coventry Telegraph - The Geek Files]
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