Prime Minister John Key will be holding a press conference this evening to discuss the future of The Hobbit.

The Govt is continuing to negotiate with Warner Brothers on The Hobbit films but does not have an open chequebook.

Sir Peter Jackson has produced a letter which he says counters claims by NZ Actors' Equity that they sought a meeting with the producer prior to blacklisting The Hobbit.

A union leader is concerned a precedent could be set which would challenge New Zealand's sovereignty if the Government changes labour laws to entice Warner Brothers to film The Hobbit in the country.

Every employee in the land should be concerned at the hammering the actors have got for daring to ask for meaningful negotiations.

Only a new law will give Warner Bros the guarantee it wants on labour laws to keep The Hobbit in NZ, an employment law expert says.

John Key says he has made it clear to Warner Bros that the Govt cannot go to extreme lengths to keep The Hobbit films in NZ.

The union behind an actors' boycott of The Hobbit has given an unconditional guarantee that it will not take any more industrial action against the film production.

A video clip has highlighted the anger and high stakes involved in the row over The Hobbit.

TVNZ dished out an average of almost $50,000 each to 44 staff whose contracts were "terminated" in the past financial year.

Sir Peter Jackson and his business interests seem to have won the media battle over The Hobbit.

Mighty River Power chief executive Doug Heffernan is NZ's highest-paid government employee with a $1.32m package.

An Actors' Equity meeting to be held in Auckland tonight has been canned over fears technicians and other workers in the film would picket.

A filmmaker and actor who worked on LOTR and Avatar says union demands to standardise pay rates could cripple dozens of NZ films.

The Hobbit is slipping away from New Zealand despite the best efforts of its producers, the film's co-writer Philippa Boyens says.

Sir Peter Jackson and Fran Walsh's statement on The Hobbit and a release from the Council of Trade Unions in response.

The loss of The Hobbit film overseas is a "potential tragedy for the New Zealand film industry", Minister of Arts, Culture and Heritage Chris Finlayson said this morning.

The producers of The Hobbit say production is being moved off-shore after industrial action 'undermined Warner Bro's confidence in NZ'.

At least 15,000 workers from Kaitaia to Bluff have attended stop work rallies this afternoon in protest against new employment laws.

Thousands of workers have gathered in Auckland and Wellington as 28 protests against new employment laws take place around NZ.