The Government was under so much pressure from the other film businesses as rivalry was intense from the I-J, ASSAI, Canada, Australia and many more countries as they all wanted a movie like ‘The Hobbit’. That was the reason the incentive of changing labor laws was undertaken in such an urgency as the government id not want to further deviate expenditure of public money while having to fight back to match the massive tax breaks offered by other countries.

Warner Brothers received tax subsidies of $100 million and “government agreed to give up to $34 million of tax breaks” (Change, 201 0) through civility of New Sealant’s tax payers. More compromises were approaching as the Government eluded the standard democratic process to move forward with Parliament legislation that undermined the Employment Relations Act, and also benefited the international film company with $25 million. The overspent flaunted this as triumph for the film industry in New Zealand.

The New Zealand government or national party is ideologically placed on the right wing of the spectrum. Right wing means In politics, right-wing describes an outlook or specific position that accepts or supports social hierarchy or social inequality. Social hierarchy and social inequality is viewed by those affiliated with the Right as inevitable, natural, normal, or desirable, whether it arises through traditional social differences or from competition in market economies. It typically accepts or justifies this position on the basis of natural awe or tradition.

Therefore favors free trade, globalization and open markets. They also want more FED (Foreign Direct Investment) such as the Warner Brothers’ Hobbit investment. (rejuvenation) The NZ Film Industry will be affected both positively and negatively. “A 2008 report found that film and television industry injected $2. 5 billion into No’s economy… ” (TTFN-One news, 201 0)The positive thing is that the more contractors get to keep their jobs; New Zealand has been able to build its flexible status again after the boycott scenario with The Hobbit.

If the movie was not made in NZ then there would eve been long term damage to the NZ Screen production sector and the economy. The negative consequence is that Film industry will be affected by the reductions in rights of NZ workers in Film Production as the Warner Brothers do not want to go through any cases regarding employment regulations after losing a case in the Supreme Court during their previous movie production. Warner Brows. Has closed its office in New Zealand. The distribution office shut down at the end of May although Warner Brows. Affirmed its commitment to business in New Zealand and, they said the ark would be outsourced to a local company. The shutdown will raise questions in New Zealand because the Government changed employment law and provided tax breaks to get Warner Brothers to make The Hobbit there. For that The Prime Minister John Key said, “The Hobbit films have created 3000 jobs. They were crucial to New Zealand for our movie industry; was a very positive step that the Government took.

I’m not sure what has happened in Auckland, but I don t imagine it’s many jobs. ” Warner Brows. Have had an office in New Zealand since 1947. (News, 201 2) If the Hobbit was move room New Zealand than tourism is decrease and most of societies and their livelihood based on the jobs in tourism sectors are may be close and it’s affected very badly. One society in particular would have been drastically affected and that’s the people in Metadata near Waist region.

This would have been a major hindrance as after the Lord of the Rings movie, that place had been made world famous with its Hobbit set. Although it’s been seven years since the release Of The Lord of the Rings, Metadata and the society persist to bring in benefits after the production of The Lord of the Rings attracting more than 200 000 people each year. So by providing incentives to Warner Brothers government has saved the local societies from being drained out of tourism revenues.

Changes to labor law were considered unacceptable and unfair law change. The New law was seen to create a default position, categorizing all film production workers as independent contractors. With my evidence now I know I have clear my doubts about what kinds of incentives are provided to the Warner Brothers. I am used the different sources and its quite helpful for increase my knowledge on libations infusion on our economy, government role in economy, etc.

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