01 October 2007

New Zealand’s competitive edge as a preferred destination for international film production has been reinforced with changes to the screen industry incentives package that are tipped to attract big-budget films over the next year.

New Zealand’s Large Production Screen Production Grant (LPSPG) has been increased to a 15 per cent cash rebate on production expenditure of more than NZ$15 million, up from 12.5 per cent. Large productions will be able to access a grant each time expenditure goes over the NZ$50 million mark.

Another change means big-budget movies are no longer required to spend 70 per cent of qualifying production expenditure between NZ$15 million and NZ$50 million in New Zealand, before being eligible for cash rebates.

In addition, ‘bundled’ films will now be eligible for rebates. This means several productions costing a minimum of NZ$3 million each can be grouped together to qualify for the LPSPG when the total reaches NZ$30 million over a two-year period.

For the first time, there are also incentives to encourage the use of New Zealand-based post-production digital and visual effects (PDV) services, with a 15 per cent rebate available for those spending NZ$3 million or more.

“Overall, the package confirms how film friendly New Zealand is for the international screen industry,” says Paul Voigt, Investment New Zealand’s Investment Manager – Screen Production. “We compare very favourably with other jurisdictions such as Australia, South Africa, Canada, Eastern Europe and the United Kingdom in terms of both incentives and the value of our dollar, particularly when compared to the United States dollar.”

He says another key advantage is the speed with which grant applications are processed – New Zealand has averaged a three-month turnaround from the time production houses apply for grants to having the cash in hand, over the past five years.

Strongest growth is anticipated in the PDV sector of the industry where, Mr Voigt says, New Zealand’s creativity, capability and technological innovation are highly sought after.

For example, much of the science fiction film Avatar, which will have a large computer graphic element, is being produced in New Zealand. Due for release in 2009, Avatar is the first dramatic feature from director James Cameron since his Oscar-winning blockbuster Titanic in 1997.

“Technologically this will be another groundbreaking movie and it’s a real endorsement of New Zealand’s digital talent and innovation that so much of the film is being made here,” says Mr Voigt.

Companies like US-based Walden Media, known for turning award-winning children’s literature into equally compelling films, are becoming regulars on the New Zealand film-making scene.

Walden Media, in partnership with Walt Disney Pictures, made the first instalment of The Chronicles of Narnia: The Lion, the Witch and the Wardrobe in New Zealand, followed by two more family films, The Water Horse and Bridge to Terabithia. The next instalment of the Narnia franchise, Prince Caspian, was partly filmed in New Zealand earlier this year.

Mr Voigt says a combination of New Zealand’s unique locations and award-winning studios, special and visual effects and post-production capabilities is behind Walden spending at least NZ$250 million in New Zealand over the past few years.

“Having a New Zealander [Andrew Adamson] directing The Chronicles of Narnia: The Lion, the Witch and the Wardrobe gave us a start but Walden still went out and investigated all the possible options before choosing New Zealand. They are very comfortable working here.”

That’s supported by comments from Walden Chief Executive Cary Granat: “Walden has come to know New Zealand as its second home. We’ve come to know the people very well through each successive project we shoot there and love to keep coming back.”

A number of big-budget productions are already scheduled to be filmed in New Zealand over the next year. They include a Korean/US production of an action drama titled The Laundry Warrior and a French/New Zealand co-production that is an adaptation of the award-winning New Zealand novel The Vintner’s Luck. The film tells the tale of a 19th century French peasant winemaker and his life-long relationship with an angel as they search for the perfect vintage.

In addition, internationally acclaimed New Zealand director Peter Jackson will be filming The Lovely Bones in New Zealand and the US later this year, his first feature film since King Kong.

Mr Voigt says the package of screen industry incentives announced by the New Zealand Government in June has created considerable interest internationally, with a steady stream of enquiries already lodged.

Full details of New Zealand’s improved support package for the film industry are available at http://www.filmnz.com/production-guide/large-budget-screen-production-grant-scheme.

For more information, please contact:

paul.voigt@investmentnz.govt.nz

+64 9 919 9042