Herald on Sunday, February 9, 2020 News 1–18 |Review 19–27 |Business 28–29 |World 30–33 |Weather 34 |Classified 35 |Sport 36–44 | # 3

Weta Digital, creators of Smaug, Two Kiwis is responsible for 41 per cent of subsidies paid out under the scheme. on ship with virus

Asecond Kiwi has tested positive for coronavirus on the stranded Diamond Princess cruise liner docked off Japan. “This person is aNew Zealand permanent resident and is receiving treatment in hospital,” the Ministry of Foreign Affairs and Trade said. Mfat would not provide any more information about the person but the individual was one of 13 New Zealanders on the ship. The ship carrying 2666 guests and 1045 crew has been docked off Yokohama and officials are preventing anyone leaving the ship, apart from those who tested positive for the virus being taken to hospitals. It is one of four cruise ships — carrying at least 11,000 crew and passengers collectively —stranded by coronavirus. The World Dream is docked in Hong Kong as aprecaution after eight former passengers tested positive. The MS Westerdam remains at sea after Japan became the fourth country to turn it away despite oper- ator Holland America’s insistence no one on board was infected. And dozens of people who Weta’s $41m subsidy recently travelled from China have been tested for coronavirus on Royal Caribbean’s Anthem of the Seas, now Last year the scheme saw $105m docked in Bayonne, New Jersey. and taxpayers paid out to largely Hollywood pro- The number of confirmed Sir Peter Jackson’s business fought to keep lose,” he said. ducers —afigure comparable to Tour- coronavirus cases is now hurtling Request for ism New Zealand’s annual budget. towards the 40,000 mark, with 34,842 film incentive details secret comment to The Herald first requested the confirmed to have contracted the Jackson, and to breakdown of subsidy payments by deadly disease worldwide. Of that Weta Digital, recipient in July 2018, only for MBIE total, 34,598 cases are in China —a Matt Nippert prostheticsmaker Weta Workshop went unacknow- to reject the request two months later rise of about 3400 cases in aday. (whose work during the period Peter Jackson ledged this week. after receiving complaints from Weta And 86 people died from the virus ir Peter Jackson’s Wellington- generated $1.4m in subsidy Jackson and that the information was commerci- on Friday, bringing the global death based Weta Group payments), post-production facility his companies have not responded to ally sensitive. toll to 724. All but two of those are effectively receives more Park Road Post ($700,000), children’s Herald queries since August 2018. The matter was subsequently on the Chinese mainland with one S than $40 million annually television producer Pukeko Pictures Economic Development Minister referred to Ombudsman Peter death reported in the Philippines and from the taxpayer. ($5.5m), and blockbuster special Phil Twyford, when asked about the Boshier. Astatement from Boshier’s another in Hong Kong. Afurther 6100 Briefingsbelatedly released under effects house Weta Digital ($109.5m). concentrated benefits of the scheme office said in late 2019, after people in China are seriously ill. the Official Information Act by the Weta Digital is by far the largest in Miramar and with Jackson, said, “I consulting MBIE and Weta, Ministry of Business, Innovation and member of the group, employing don’t really have aproblem with it. “ultimately he was not persuaded” ● Anger grows along with toll, p31 Employment show the heavyweight around 1600 people and responsible The subsidy doesn’t go directly to that the information should be with- director and near-billionaire’s for 41 per cent of all subsidies paid Weta Digital. And Weta Digital have held. businesses received the lion’s share out under the scheme. been very successful, and they pro- Seymour was critical of Weta in of work generated by incentives to Based on the 20 per cent subsidy vide what is obviously afirst-rate and seeking to prevent the release of the Lotto lure international film productions to rate availablefor special-effects work, internationally-competitive service — information: “There’s areal irony in Draw no 1932 Bonus New Zealand. and annualising MBIE’s numbers, it so good on them for that.” that they purport to be aprivate 12 13 14 15 24 38 35 The figures were only released appears Weta Digital effectively He said the concentration of the business —and expect all the privacy after an 18-month investigationbythe receives $38.6m in annual subsidies Wellington film industry was due to of private businesses —but also ex- Division Amount Winners Division 1$1,000,000 1 Ombudsman,and cover payments —around the same as the budget “peculiar circumstances that grew pect to receive public Division 2$29,6162 12 made for international productions allocated to RNZ —togenerate around Weta and Peter Jackson’s funds.” Division 3$606 582 under the Screen Production Grant revenues of around $200m. The companies” and he was Division 4$62 1295 between August 2015 and April 2018. figures also suggest each job at the optimistic recent productions — Division 5$31 22,688 Total payments made under the effects house is underpinned by more notably Amazon Studios’ Lord of Gollum Division 6$24 28,317 scheme during the period amounted than $25,000 in annual taxpayer the Rings television series —were Division 7Bonus Ticket 317,117 to $268.2m, with $117.1m going to support. seeing the industry grow beyond Strike: 24 14 13 15 support work of the Weta Group. The Act Party MP David Seymour said Miramar. Division 1133,333 3 Weta Group is acluster of film-making Weta should take on anew The subsidy scheme is an evolu- Division 2$617 92 companies largely owned by Jackson production: “The Emperor’s New tion of incentives first forged more Division 3$68 4666 and headquartered in the Wellington Clothes”. than two decades ago to enable Division 4Bonus Ticket 120,005 suburb of Miramar. The dataset does “All along we’ve been told there’s domestic production of Jackson’s Powerball: 10 not include substantial payments amultiplier and the taxpayer is Lord of the Rings trilogy. Due to Division 1Rollover 0 subsequently made for Weta-linked getting amassive boost of asmall international competition they Division 2$53,702 1 projects Mortal Engines ($27.8m), investment. Now it looks like without have steadily increased in Division 3$1,314 36 Alita: Battle Angel ($25.7m) and the taxpayer subsidies, none of this scale and size and today Division 4$120 102 Avatar sequels ($44.4m to date). would exist. There’s ageneral lesson provide studios cash Division 5$62 1631 Division 6$45 2108 The group employs around 2000 here that when politicians try to go rebates of up to 25 per cent Division 7$15 +Bonus Ticket 23,135 people and includesprop and into business, businesspeople win of aproduction’s budget.

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$50m Potential extra payment $200m Likely

subsidy to Amazon’s Lord of the Rings will refresh the ‘Middle-earth brand’ Amazon establishedbyPeter Jackson’s movies (pictured), says a Government briefing. SUBLoSIDIErd of the S As Amazon preparestofilm the Lord of the Rings seriesinNZ, millions in taxpayersweetenersare at stake, reports Matt Nippert

espite filmingbeing Parker in December 2018 after a“con- RobynHenderson said in astatement successfullyapplied foranextra creative staff on the IMDb movie and shesaid. “There’s “The production is slated to startnext fidential recce” of thecountry. thatAmazon’s Lord of theRings quali- $1.6m in funding partlyonthe basis TV database seem to show onlyone limitedopportunities H prettywell-awareof monthinAuckland Briefings forParkerwritten early fied forNew Zealand’sbaseline 20 per that one of its episodesfeaturedthe NewZealander behind the camera — foractors to progress, those criteria, and on the billion-dollar last year said winning hostingrights cent subsidy—which is likelytosee baking of apavlova. costume designer Kate Hawley. and so we want to grab Read the background howtobebest- Lord of theRings TV would “facilitate the retention and re- $200 million paid to Amazon —but in Thecriteriafor securing theuplift EquityNew Zealand director everyopportunity documents at placed to qualify.” series, producer freshofour ‘Middle-earth’brand,and Januarylast year the company was were subsequentlytightened,includ- Denise Roche, whose organisation we’vegot in order for nzherald.co.nz/ Since the uplift DAmazon and the open adoor to awider relationship invited to applyfor a5per cent uplift. ing requiring an invitation from MBIE lobbiesfor actors, confirmed the us to have somemore business criteria were tight- Government arestilllocked in nego- with thewiderAmazonbusinessnet- Thisbonus sweetener is intended to apply. Thequalificationtestisa principal cast lists released to date by Sam Neills.” ened in 2017,onlyafew tiationsovertens of millions of dollars work”. forproductions which generate a complicatedpoints-based system, Amazon featured no NewZealand NewZealand Film productions have been in subsidysweeteners. The serieshas already been green- “significant economicbenefit” and butindustrysources have said Ama- names, but shehoped thatwould Commission boss invited to applyfor the NewZealandwas announced in lit by Amazon foratleast twoseasons couldbeworth another $50m to the zon would struggle to passitgiventhe change.“We arehearing around the Annabelle Sheehan, whowas increased subsidy, including Septemberasthe base forproduction and is widelyreportedtohavea studio. apparent lack of NewZealanders in traps thatthereare NewZealanders involved in meetings with Amazonat MortalEngines and Ghost in theShell. of the series, adapted from JRR budget of morethan $1 billion. New “Amazon submitted an appli- keypositionsonand off thescreen. being auditioned, and we’veheard the Beehive and is also partofthe Sheehanadmittedshe didn’tknow Tolkien’s fantasy books. Documents Zealand’s hosting of the production cation in late 2019.Thisapplication is In an initial casting announcement thattherewill be further panel assessingthe uplift application, of anycaseswhereaninvitationwas obtainedunder the Official Informa- came after beating stiff competition under consideration andsubjectto lastmonth,Amazonannounced15 announcements,” shesaid. said the dragged-outnegotiations extended to aproduction thatdidn’t tion Actshowthatannouncement fol- from the likes of Scotland,largelybe- ongoingnegotiations,”Henderson actors to appear in the first two Roche saidshe wasinfavourofre- were “not actuallythatunusual”. subsequentlyresult in the additional lowedlong-running negotiationswith cause of the levelofsubsidiesoffered said of discussions about theuplift. episodes—including Americans, quiringinternational productions to She said Amazon waswell-aware payment. “Not thatI’m awareofso the Governmentthatbegan with key to international screen productions. Theuplift has been controversial Britons, Australiansand an Iranian — have aquotaofrolestobefilled of the uplift criteria,and NewZealand far.It’sonlybeen in place since2017, Amazon executive Bruce Richmond MinistryofBusiness, Innovation in the past; in 2018 it wasrevealed that but no NewZealanders. And bio- locally. personnel involvementwas one of the andthere’s only been ahandful of meeting Cabinet Minister David and Employment policydirector television series Power Rangers had graphysearchesfor keycrewand “And notjust as featured extras,” subjects under discussion. projects,” shesaid.