Amazon deal raises questions

WELLINGTON: The Government’s priorities are being questioned after it announced it will be giving Amazon a more than $100 million boost to film the Lord of the Rings television series here.

Under a memorandum of understanding, Amazon will get an extra 5% from the Screen Production Grant in addition to the 20% grant for which the production already qualifies.

Amazon plans to spend about $650 million on season one of the series, making it eligible for a rebate of more than $160 million.

Economic Development Minister Stuart Nash said the deal was ‘‘fantastic’’.

The Government would not say exactly how much this deal would cost, citing commercial sensitivity, but Mr Nash confirmed it was more than $100 million.

‘‘The world’s most innovative company has decided to come to this country . . . spend $650 million, grow our film industry, we’re able to leverage off some of their really innovative technologies and ideas, where’s the down side?’’

However, New Zealand Filmmakers’ Collective founder Richard Turner described it as a doubleedged sword.

The plus side was that it would open up a lot of opportunities for work, he said.

‘‘The other side of the coin is for all that money it feels like we should be looking closer to home and looking at . . . talent development and looking at New Zealand filmmakers and where that money could go.’’

Mr Turner said domestic feature film funding or funding for any project in New Zealand was incredibly difficult.

‘‘The majority of us [filmmakers] feel as though the Government and funding bodies are doing the bare minimum to allow filmmakers to create content, especially feature films.’’

National supported the deal, but wanted the Government to publicly release all advice on the extra economic benefits of the arrangement.

Mr Nash said he had not read Treasury advice regarding the deal.

Treasury has since confirmed it had not given advice specifically on the understanding between the Government and Amazon. Rather, it had given advice on Screen Production Grants more broadly.

National economic development spokesman Todd McClay also wants the Government to ensure it is not creating a ‘‘bidding war’’ where other studios and companies start demanding the same levels of government subsidies.

Act New Zealand deputy leader Brooke van Velden said a company that made more money last year than this country did not need any financial help from the Government.

She said the country’s Covidfree status and environment should be enough to entice film companies to come here.

Council of Trade Unions president Richard Wagstaff was worried about Amazon’s international reputation of undermining unions.

‘‘Just a week or two ago we had a very significant event in Alabama where Amazon did everything in their power to dissuade workers from joining a union, and that’s a real concern to us that they bring those kind of ideas out to New Zealand,’’ he said.

Retail NZ chief executive Greg Harford wanted to make sure Amazon was on an even playing field with local firms.

‘‘It is really important to make sure that if Amazon is coming into the market . . . that it is paying its fair share of tax and of course GST is being collected on anything it is selling,’’ he said. — RNZ