Peter Jackson calls for incentives

New Zealand will lose blockbuster film projects to other countries unless it offers fresh incentives to film-makers, Peter Jackson says.

On the same day his latest film premiered in Wellington, Jackson said New Zealand's film industry was being squeezed by a high dollar, making movies more expensive to shoot, and increased competition from other countries offering better incentives – including Australia.

He was aware of rumours that Australia was set to implement new financial incentives to reboot its film industry, which has suffered from a dearth of big-budget films in recent years.

If that happens, New Zealand could lose out. "We all have to be very worried about [this]. All these big Hollywood movies that were supposed to be shooting in Australia have all walked away.

"I'm hearing rumours that the Australian Government are looking at getting very aggressive with their incentives. We are going to have real problems if our Government doesn't instantly react and match what the Australians are doing."

He said people thought New Zealand had "some magical quality" that attracted movies, "but it's going to come down to the dollars".

Jackson, who is leading a ministerial review of the Film Commission, also said the exchange rate had made The Hobbit, due to start shooting in April, "tens of millions of dollars" more expensive than it would have cost if made 18 months ago.

New Zealand had already lost two major productions to Australia – The Voyage of the Dawn Treader, the third Narnia film, and Sea Shepherd, about anti-whaling campaigners.

Arts, Culture and Heritage Minister Chris Finlayson said New Zealand had never been positioned as the cheapest location for making movies, but it had a skilled workforce and a track record of quality work.

- © Fairfax NZ News