From the Dominion Post:
Economic Development Minister Steven Joyce was repeatedly advised by officials not to budge on the subsidies for big-budget television and film productions, despite intense lobbying from the industry. Officials said the bigger subsidies demanded by the industry were a “race to the bottom” and the Government was not expected to prop up other industries.
No surprise as the US studios threatened to move Avatar work to Australia or Canada. The backlash from the media for the decision was substantial. What’s interesting is this won’t be the last round. James Cameron indicated the latest increase is still not enough:
He said he would have liked to see even higher rebates but could live with the 25 per cent on offer, and believed other major productions would agree.
Welcome to the race to the bottom.