Film subsidies ‘distort the labour market’

New Zealand’s gaming industry says it is being disadvantaged by old-fashioned systems that give subsidies to films but not interactive media.

Since 2014, the NZ Screen Production Grant for international productions has offered a cash rebate for ‘‘qualifying New Zealand production expenditure’’.

That means, in many cases, film production companies can access rebates of about 20 per cent of their budget for international productions. Domestic productions can access up to 40 per cent.

Games developers say they are often competing for talent with firms that work on those film productions – such as Weta Workshop – but they do not have access to the same financial support.

‘‘Games studios and film visual effects studios often hire the same people,’’ New Zealand Games Developers Association chairwoman Cassandra Gray said.

‘‘Many technicians move back and forth between the two sectors.

‘‘The fact that some productions can receive government assistance but similar interactive ones cannot does distort the labour market.’’

She said the New Zealand Film Commission offered the Interactive Development Fund, which included grants of up to $25,000 for narrative-based games at the start of the development process.

‘‘There’s currently no government funding or support for games and interactive media developers beyond this stage; there’s no pipeline to take games made by small teams of developers from prototype to full production. And there’s no pipeline to work on large productions equivalent to feature films.’’

Her organisation’s research showed that while New Zealand’s games industry earned more than $143 million in 2018, the global market was worth $258b.

Gaining 1 per cent of the global video games market would generate $258m in new exports.

The sector has grown 39 per cent annually for six years, and if an industry plan and government support maintained this growth rate, it would be worth $1b in 2024.

‘‘We’re the fastest-growing creative industry in New Zealand.

We’re considered part of the screen sector, and yet games and interactive media aren’t even eligible for the New Zealand Screen Production Grant,’’ Gray said.

‘‘If interactive productions were eligible we could attract even more productions to New Zealand and they’d be more likely to be New Zealand-owned rather than Hollywood-owned.’’

There should also be a dedicated industry development organisation, she said, and a fund to encourage the production of original interactive projects.

Stephen Knightly is the chief operating officer of Rocketwerkz, which has been through a significant expansion phase, hiring staff for its offices in Auckland.

He said there was wide recognition that gaming was part of the screen industry and that the media world had changed.

He said the New Zealand gaming industry was missing out on opportunities – such as a Lord of the Rings game – because it did not have the resources to attract large projects to New Zealand.

Economic Development Minister Phil Twyford agreed that, with more government support, gaming development could be a $1b industry.

‘‘It’s the kind of industry we want to foster – it’s big on exporting, job-rich, with skilled jobs that are well paid, [and] it’s carbon free. It ticks all the boxes.’’

He said the Government was working through industry transformation plans, including one for the digital sector, which was already under way, and one for the creative sector later this year.

‘‘The support we want to give to the interactive media industry will be considered within the creative sector industry transformation plan.’’

He said gaming had ‘‘really bright’’ prospects.

‘‘[Gaming development] is the kind of industry we want to foster – it’s big on exporting, job-rich, with skilled jobs that are well paid, [and] it’s carbon free. It ticks all the boxes.’’

Phil Twyford, left

Economic Development Minister