Studios thank NZers for Hobbit support

File photo / Christine Cornege

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The US movie studios backing filming of The Hobbit have thanked Sir Peter Jackson and New Zealanders for their support of the project.

New Line, Warner Bros and MGM said in a statement they were pleased to have concluded successful discussions with the Government this past week.

"We'd like to thank Prime Minister Key, his cabinet and the other dedicated New Zealand officials for their support and cooperation, which helped assuage our concerns and enabled us to keep The Hobbit in its proper home of New Zealand."

Filming is scheduled to begin in February 2011.

Yesterday parliament passed a labour law change the Government said was an essential part of the deal to ensure the movies stayed in New Zealand.

The agreement that has kept the $670 million production in New Zealand was reached after two days of difficult negotiations between senior ministers and Warner Bros executives earlier this week.

The Government agreed to give the studio an additional $20m tax break and change the law so there would be no possibility that contract workers could go to court and claim employee rights.

- NZPA