... we just live in it (wherever we are):
Big Films Cost [New Zealand] Millions
Attempts to woo Hollywood film-makers have lost New Zealand tens of millions of dollars, confidential ministerial briefings say.
Now, critics are accusing Government ministers of having stars in their eyes.
A Cabinet paper prepared by Treasury in February and released to the Herald on Sunday under the Official Information Act, said subsidies for films such as Avatar and King Kong could not be economically justified. ...
"It's a transfer of wealth from the average New Zealander to the rich beggars of Hollywood," [Act finance spokesman Sir Roger Douglas] said. ...
Gee. This "Transfer of Wealth" thing, it sure is going around. Would Hank Paulson, Tim Geithner and Larry Summers be moonlighting with the New Zealand guvmint, do you think?
And thanks to the visual effects guy for e-mailing a link to the article.
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31 comments:
In Obama-speak, it's called "SPREAD the wealth". Hey, the New Zealand gov't was only trying to create jobs - and got the usual results.
In bush speak, it's called SEND ALL JOBS anywhere but in the U.S.
And let terrorists attack. And lie to get us in an un-neccesary war that has cost U.S. Citizens trillions. And degrade the environment. And be the worst president in U.S. history.
Don't forget the bush Economic Debacle. While yet again asleep at the wheel, bush and dick allowed the greatest depression since the 1930's to occur.
No, Americans do NOT miss dick and bush. No President is perfect, but a vast majority STILL prefer President Obama over bush. And over every other potential republikkkan candidate.
Ron Paul for 2012!
Ron Paul can't lead. He's too wishy washy--and he's a corporate communist.
And his son, RAND Paul was just notified he'snot Board Certified as a doctor, even though he's been campaining that he was. Like father, like son.
I thought Carter and Reagan let all the jobs go overseas back in the day. Steel and animation....
ITS ALL BUSH"S FAWLT!!
^ Keep shouting that as the November elections are a landslide for the Republicans. It'll sting less.
Name one thing Obama has done for small businesses.
One.
70% of the US economy has had nothing but burdens heaped upon them since this jackass took office.
"70% of the US economy has had nothing but burdens heaped upon them since this jackass took office."
...and the facts that back up this assertion are..?
Glad to see we are discussing the topic of the New Zealand film industry and government film subsidies and how that affects out the animation industry at large instead of the old tired arguments about Bush/Obama sucks and he's ruined the economy. Oh wait...
"...and the facts that back up this assertion are.."?
The current unemployment rate and FAILURE of this administration to create jobs.
Thats the problem. Blaming it on the previousadministration doesn't solve it - well, actually it does because the more you whine the bigger the landslide victories will be in November.
LOL!
The sooner you guys realize that the accidental presidents of the moments are not really responsible, but just happen to be there when things go down. And the more you research what actually happened when they were in office, the sooner you will see that we have been in trouble for a long long time. Money does what it wants to do, no matter who is in office. Can you not see that? New Zealand got taken this time. Various states in the U.S. have been taken over the years.
Yeah, the bad ol' days of Bush. Low unemployment, low interest rates, economic expansion, booming stock market...
Wow, and we thought things were bad THEN...
Bush is no the problem. Obama is not the problem. The problem is, and always has been, Greed.
Call it survival of the fittest, or call it immoral. But whatever it is, the biggest reason for suffering in this world is that the people at the top fight to stay at the top. Depending on your worldview, thats a good thing or a bad thing.
But shouting about Republican landslides and all this other garbage does absolutely no good.
You know, I could delete most of the comments as "off topic." (Do we really need more Bush-Obama flaming? I think not.)
But I will let everything stand, because I am sweet and even-tempered. And want only the best for all of God's children.
So is NZ giving subsidies or tax rebates?
At one point the article cites that producers get 15 percent rebate on money spent.
Name one thing Obama has done for small businesses.
One.
I know at least three small businesses that benefit from the small business provisions in President Obama's health care reform.
"The current unemployment rate and FAILURE of this administration to create jobs."
This has nothing to do with the specific percentage that was mentioned in the previous post. But nice try.
Oh, you mean the small business provisions that diverted money to huge corporations? Thats the one you cited? Wonderful. You are citing a filure to defend his failure.
http://tinyurl.com/243k748
The question remains, what has he done that has helped small businesses? Nothing.
Has anyone read Thomas Frank's "What's the Matter with Kansas?"
There's plenty of blame to go around.
The fat cats will always have the last laugh if most people keep thinking only with their glands.
How stupid and short-sighted the NZ complainers are. They remind me of the Aesop story of the dog who dropped his bone in the water because he wanted the bone in the reflection.
Do these idiots not realize that the only reason the work got to NZ in the first place was BECAUSE of the subsidies? What do they think, producers and studios wake up every day and say, "Hey, what are we doing here when we could be making this movie in beautiful New Zealand?" They will just have to content themselves with the revenue from income taxes and the dramatic uptick in consumer activity that employed people create.
NZ- please PLEASE eliminate the subsidies!
To our righty friend: Your Bush "prosperity" was mostly in the finance and real estate businesses. In other words, an illusion.
"You know, I could delete most of the comments as "off topic." (Do we really need more Bush-Obama flaming? I think not.)
But I will let everything stand, because I am sweet and even-tempered. And want only the best for all of God's children."
Delete 'em all and let God sort 'em out.
Worse yet, we have been living in an energy illusion even longer. Eliminate the oil and energy subsidies and you have the real cost of the freedoms of the modern western world - turns out it isn't so free after all, is it? Every single one of us actively and willfully participates in the illusion that companies like BP provide. Western Civ. 101.
Oh, you mean the small business provisions that diverted money to huge corporations? Thats the one you cited? Wonderful. You are citing a filure to defend his failure.
I run a two-person business and use not-for-profit Kaiser Permanente health insurance to protect the two employees of that business. Starting this year, I will benefit from the tax credit for small businesses who insure their employees.
In 2014, my business will benefit from the lower cost of health insurance purchased through the exchanges.
These are real benefits for me and my business.
New Zealand and many other countries would be better off subsidizing or investing in smaller, home grown projects than attempting to lure large, multi-million dollar Hollywood blockbusters. The reality is that the infrastructure and investments that Hollywood studios put into Australia, New Zealand, and elsewhere will be packed up the moment the subsidies dry up. After all, a studio back lot is a studio backlot and, sans subsidies, why would studios make the additional investment to go overseas when the infrastructure is much larger in LA?
"I run a two-person business"
Oh yeah - there is a big benefit for businesses with 2, or 4, or 6 employees. But how many small businesses have a staff that small?
Not-for-profits and t shirt shops.
So small businesses ARE NOT helped by this tax credit. Most small businesses have 25 or 30 or 40 employees. Most small businesses actually operate to make a profit yes? And they have gotten nothing.
So congratulations on your not-for-profit having a tax break, but the policy that granted you that will not help the economy. In fact, the studio I work for - a small business - just canceled their health insurance for employees. As have 51% of small businesses in America at this point. Even though Obama promised that "no one would lose their insurance" from his bill.
Thats why there is a 43% approval rating for this clown.
Hey douchebag, if they cancelled their insurance for this reason they would've found another reason to cancel it sooner or later anyway. Just be glad that Obama made it so you will soon be able get affordable insurance on your own soon.
And since you mentioned that you work at a studio why don't you stand up and signa union card...oh yeah, I forgot, you're a douchebag. You'd rather find a reason to complain about the firsst president in years that actually wants to make progress for someone other than his cronies
Halfcuban struck the right note
Governments tend to be wonderstruck by large studio/vfx infrastructure & yes, it may create some menial level jobs & transient activity. We in the industry know that it's not the key. countries like New zealand should not spend on infra heavy activities but instead on attracting global immigrant talent which can create global properties (not necessarily execute them in big soontobe-bankrupt-studios).
also the "stars in eyes" is relevant. why didn't they study alternatives like what can similar investment in pharmaceuticals, energy, or technology, can do dollar for dollar. after all I see it more possible & perhaps more sustainable for the next facebook, Nuke, REIT or ocean reality show to emerge from a country like NZ rather than another Weta.
So small businesses ARE NOT helped by this tax credit. Most small businesses have 25 or 30 or 40 employees. Most small businesses actually operate to make a profit yes? And they have gotten nothing.
So congratulations on your not-for-profit having a tax break, but the policy that granted you that will not help the economy.
Let me correct some misconceptions. My two-person business is a for-profit visual effects business. I chose not-for-profit health insurance to protect the two employees of that business. Kaiser Permanente is a not-for-profit health care system with no shareholders.
The Affordable Care Act also helps small businesses larger than mine. The tax credit is good for small businesses with up to 25 employees. In 2014, small businesses with 50-100 employees will be allowed to purchase competitively priced health insurance for their employees on the exchanges.
I think almost everyone has buyers remorse over the last year and look forward to cleaning House.
Actually I don't think they should be trying to attract outside talent at all; I'm a firm believer that countries film agencies should be concerned with creating homegrown talent, even if these projects are smaller or don't offer as big as a bang as a large studio movie. Just take Sweden, which invests in a number of smaller projects, and has yielded large dividends in recent years in "Let the Right One In" and "The Girl with..." series. Both films shot, produced, directed, and acted by Swedish individuals. Attracting "global" talent with local people's money is ridiculous; people's tax dollars should go, as much as possible, to creating jobs for themselves.
I live in LA, and have been offered jobs in Canada (multiple times), Arizona, and New Zealand, and elsewhere. All of those jobs existed because of tax breaks/subsidies by the locals in those places. All of the money I earned would have gone back to LA. The producers in all those cases were LA-based. It is a massive boondoggle. Politicians love being connected with the entertainment industry, and love having some of it done in their back yard. They're like children, impressed by shiny baubles, and meanwhile they make terrible financial decisions.
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