The Government has confirmed it plans to funnel more money into New Zealand's film production sector.
The $577 million injection over the rest of this year and the next four brings the total International Screen Production Rebate to $1.09 billion.
Eligible productions can access a 20 percent rebate where production costs are more than $15m for feature films, and $4m for television productions.
Great Southern TV's Phil Smith joined the Afternoons team to discuss.
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Episode Transcript
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Speaker 1 (00:09):
You're listening to a podcast from News Talk ZEDB. Follow
this and our Wide Ranger podcast now on iHeartRadio.
Speaker 2 (00:16):
Very good afternoon. We're talking about film rebates. The latest
rebate that is in the news today is in regards
to the Avatar movie sequels, and part of that rebate
is an additional five percent which has had some criteria
attached to it. One of those criteria is having a
premiere in New Zealand, which I think we're very excited about.
(00:37):
But we've asked the wider question about film rebates. Are
you in favor of one hundred and eighty ten eighty?
Joining us now is Phil Smith. He is the owner
and executive producer at Great Southern TV. Get a Phil good?
Speaker 3 (00:51):
How are you?
Speaker 4 (00:52):
Very good? Thanks? So for one of the main economic
benefits New Zealand gains from offering this kind of rebate.
Speaker 3 (00:59):
Well, it stimulates the economy, creates employment, and I think
the biggest misconception about the rebate is that this money
is given to a producer or a big production company
and sent off sure at the end, but the rebate
is spent one hundred percent on the project. So it's
called the multiplier effect. And so every dollar that the
(01:20):
government gives us. We estimate six dollars is spent in
the New Zealand economy and that six dollars is tax
because it's workers paying their tax as GST and so
it stimulates the economy greatly.
Speaker 4 (01:34):
So as you because they talk about the qualifying New
Zealand production expenditure, so what does that cover? Does that
cover wages, does it cover rent does it Basically they
can only claim the rebate on money spent within the
New Zealand economy. Is that correct?
Speaker 3 (01:51):
That's right, and listeners can be reassured that we're very
heavily audited at the end of the next production. I've
got two at the moment, both over ten million dollars
in terms of the total budget. So yes, that you
have to absolutely spend that money in New Zealand. So
as I say, that money goes into the budget and
is spent, and it's spent on rental cars, toilets, carpenters, cafes,
(02:15):
everything you can imagine. And that's part of our three
point five billion dollar industry. And just to reassure listeners,
this criteria is global. So if you look at white
Lotus and you wonder where it's going next. The first
thing they look at is the rebate. Why did it
go to Italy? The rebate? Why did it go to Thailand?
The rebate? Why do people come here the rebate? So
(02:38):
does the global phenomenon. It's not just us doing something silly,
and if we stop doing it, then the producers will
simply go to Romania or South Africa or Australia and
we'll lose a three point five billion dollar industry that
is projected to grow to five billion and be bigger
than wool and wood. So you know, it's a good thing.
Speaker 4 (02:59):
So how does New Zealands instead of scheme compare to
those of the other countries.
Speaker 3 (03:05):
Well, we're actually pretty similar our scheme it's very attractive,
but people want to come here for other reasons other
than the rebate. There's our crews and our scenery. Like
New Zealand is just seen as world class in terms
of what we offer. Spain has the highest, they sit
at about forty to fifty percent. New Zealand's it's mid table.
(03:29):
We're very similar to Australia, we're very similar to South
Africa and some colors, but we're mid table.
Speaker 4 (03:39):
So just to clarify, so the government, you know, the
headlines are, the government commits five hundred and seventy seven
million to boost New Zealand's film and television industry. So
the company come here, they form what is a special
purpose vehicle, so that the company's offices are here and
it's a special company that's set up just for the production.
Once they spend all the money first. Is this correct?
(04:00):
They spend all the money first, and then and then
they get the rebate back as opposed to a grant
being given to them at the start of the production.
Speaker 3 (04:10):
It's not a big fat cat hand, that's right. They
get given they're kind of given a preliminary approval saying
that yes, if you are projected to spend that money,
at the end, will audit you, and if you provedly
spent that money in New Zealand will be debated. But
the money has already been spent in our economy, so
(04:31):
it's been spent everywhere. So at the end, there's no
check that goes to Hollywood. And that's the misconception that
everyone has is that at the end, someone goes, great,
here's the rebate, We're sending it off to Los Angeles.
Doesn't happen. It's already been spent here in all those
people we know in our families and we know around
New Zealand who are working within the production.
Speaker 2 (04:51):
Great answers for what would you say, because we're gtting
a few texts to this regard that we get the
film rebate, and you've explained very well, while that's of
immense value to New Zealand, but why shouldn't other industries
get rebates as well? In the same vein.
Speaker 3 (05:07):
Well, I think that the rebate in terms of the
New Zealand film industry, it's a competitive environment and the
simple fact is if we step out, we will be
an outlier. And New Zealand has to decide no be
seize us because if we've stopped making film and television here,
(05:28):
we might as well float to Antarctica, because I'll tell
you they'll go somewhere else and we'll be out. The
moment we cancel them, people around the world will just
simply go it doesn't matter. We'll just go and shoot
in the Nordic countries. We'll just go there where they
offer fifty percent. So honestly, no one will come here.
Speaker 4 (05:47):
We're talking to owner and executive producer at Great Southern
Film and Television. Phil, what about say boat building or
or you know, cloud storage, or you know a car manufacturing.
Is it significantly different from that in terms of the
(06:08):
competitive environment.
Speaker 3 (06:10):
It is. It simply is you either have them or
you don't. Like FIGI has them and they use them
progressively as well, so we're not exactly just one country
doing something crazy. In terms of the competitive aspects, I
think it's up to each industry to lobby and to
explain where they lie. This is our ground zero situation.
(06:32):
They exist everywhere in the world. You either have them
or you don't. You're either in or out. And that's
the situation our industry finds itself, and it's found itself
out to be a three point five billion dollar industry.
And the thing is, if you turn them off, you
turn off the industry. And that's an industry. As I
say that, it's now competing with the big ones.
Speaker 4 (06:52):
And finally, Phil, is there any discussion or any further
developments or any ramifications for all this around Trump's threaten
threatening tariffs against productions made outside of Hollywood.
Speaker 3 (07:08):
I don't think even within the Trump administration they have
a single clue as to how they'd implement it because
they'd end up taxing themselves, and there hasn't really been
a lot going forward. It's certainly made people unstable, but
in fact the way to make it work would be
so complicated that it would take over two years just
to work it out, and by that time Trump, well,
(07:29):
most people believe, will have been very well distracted and
moved on to other targets.
Speaker 2 (07:35):
Phil, really great to get your insights. Thanks so much
for giving us some time. That is Phil Smith, executive
and owner, executive producer, rather and owner at Great Southern TV.
Speaker 1 (07:45):
For more from News Talks b listen live on air
or online, and keep our shows with you wherever you
go with our podcast on iHeartRadio
You're listening to a podcast from News Talk ZEDB. Follow
this and our Wide Ranger podcast now on iHeartRadio.
Speaker 2 (00:16):
Very good afternoon. We're talking about film rebates. The latest
rebate that is in the news today is in regards
to the Avatar movie sequels, and part of that rebate
is an additional five percent which has had some criteria
attached to it. One of those criteria is having a
premiere in New Zealand, which I think we're very excited about.
(00:37):
But we've asked the wider question about film rebates. Are
you in favor of one hundred and eighty ten eighty?
Joining us now is Phil Smith. He is the owner
and executive producer at Great Southern TV. Get a Phil good?
Speaker 3 (00:51):
How are you?
Speaker 4 (00:52):
Very good? Thanks? So for one of the main economic
benefits New Zealand gains from offering this kind of rebate.
Speaker 3 (00:59):
Well, it stimulates the economy, creates employment, and I think
the biggest misconception about the rebate is that this money
is given to a producer or a big production company
and sent off sure at the end, but the rebate
is spent one hundred percent on the project. So it's
called the multiplier effect. And so every dollar that the
(01:20):
government gives us. We estimate six dollars is spent in
the New Zealand economy and that six dollars is tax
because it's workers paying their tax as GST and so
it stimulates the economy greatly.
Speaker 4 (01:34):
So as you because they talk about the qualifying New
Zealand production expenditure, so what does that cover? Does that
cover wages, does it cover rent does it Basically they
can only claim the rebate on money spent within the
New Zealand economy. Is that correct?
Speaker 3 (01:51):
That's right, and listeners can be reassured that we're very
heavily audited at the end of the next production. I've
got two at the moment, both over ten million dollars
in terms of the total budget. So yes, that you
have to absolutely spend that money in New Zealand. So
as I say, that money goes into the budget and
is spent, and it's spent on rental cars, toilets, carpenters, cafes,
(02:15):
everything you can imagine. And that's part of our three
point five billion dollar industry. And just to reassure listeners,
this criteria is global. So if you look at white
Lotus and you wonder where it's going next. The first
thing they look at is the rebate. Why did it
go to Italy? The rebate? Why did it go to Thailand?
The rebate? Why do people come here the rebate? So
(02:38):
does the global phenomenon. It's not just us doing something silly,
and if we stop doing it, then the producers will
simply go to Romania or South Africa or Australia and
we'll lose a three point five billion dollar industry that
is projected to grow to five billion and be bigger
than wool and wood. So you know, it's a good thing.
Speaker 4 (02:59):
So how does New Zealands instead of scheme compare to
those of the other countries.
Speaker 3 (03:05):
Well, we're actually pretty similar our scheme it's very attractive,
but people want to come here for other reasons other
than the rebate. There's our crews and our scenery. Like
New Zealand is just seen as world class in terms
of what we offer. Spain has the highest, they sit
at about forty to fifty percent. New Zealand's it's mid table.
(03:29):
We're very similar to Australia, we're very similar to South
Africa and some colors, but we're mid table.
Speaker 4 (03:39):
So just to clarify, so the government, you know, the
headlines are, the government commits five hundred and seventy seven
million to boost New Zealand's film and television industry. So
the company come here, they form what is a special
purpose vehicle, so that the company's offices are here and
it's a special company that's set up just for the production.
Once they spend all the money first. Is this correct?
(04:00):
They spend all the money first, and then and then
they get the rebate back as opposed to a grant
being given to them at the start of the production.
Speaker 3 (04:10):
It's not a big fat cat hand, that's right. They
get given they're kind of given a preliminary approval saying
that yes, if you are projected to spend that money,
at the end, will audit you, and if you provedly
spent that money in New Zealand will be debated. But
the money has already been spent in our economy, so
(04:31):
it's been spent everywhere. So at the end, there's no
check that goes to Hollywood. And that's the misconception that
everyone has is that at the end, someone goes, great,
here's the rebate, We're sending it off to Los Angeles.
Doesn't happen. It's already been spent here in all those
people we know in our families and we know around
New Zealand who are working within the production.
Speaker 2 (04:51):
Great answers for what would you say, because we're gtting
a few texts to this regard that we get the
film rebate, and you've explained very well, while that's of
immense value to New Zealand, but why shouldn't other industries
get rebates as well? In the same vein.
Speaker 3 (05:07):
Well, I think that the rebate in terms of the
New Zealand film industry, it's a competitive environment and the
simple fact is if we step out, we will be
an outlier. And New Zealand has to decide no be
seize us because if we've stopped making film and television here,
(05:28):
we might as well float to Antarctica, because I'll tell
you they'll go somewhere else and we'll be out. The
moment we cancel them, people around the world will just
simply go it doesn't matter. We'll just go and shoot
in the Nordic countries. We'll just go there where they
offer fifty percent. So honestly, no one will come here.
Speaker 4 (05:47):
We're talking to owner and executive producer at Great Southern
Film and Television. Phil, what about say boat building or
or you know, cloud storage, or you know a car manufacturing.
Is it significantly different from that in terms of the
(06:08):
competitive environment.
Speaker 3 (06:10):
It is. It simply is you either have them or
you don't. Like FIGI has them and they use them
progressively as well, so we're not exactly just one country
doing something crazy. In terms of the competitive aspects, I
think it's up to each industry to lobby and to
explain where they lie. This is our ground zero situation.
(06:32):
They exist everywhere in the world. You either have them
or you don't. You're either in or out. And that's
the situation our industry finds itself, and it's found itself
out to be a three point five billion dollar industry.
And the thing is, if you turn them off, you
turn off the industry. And that's an industry. As I
say that, it's now competing with the big ones.
Speaker 4 (06:52):
And finally, Phil, is there any discussion or any further
developments or any ramifications for all this around Trump's threaten
threatening tariffs against productions made outside of Hollywood.
Speaker 3 (07:08):
I don't think even within the Trump administration they have
a single clue as to how they'd implement it because
they'd end up taxing themselves, and there hasn't really been
a lot going forward. It's certainly made people unstable, but
in fact the way to make it work would be
so complicated that it would take over two years just
to work it out, and by that time Trump, well,
(07:29):
most people believe, will have been very well distracted and
moved on to other targets.
Speaker 2 (07:35):
Phil, really great to get your insights. Thanks so much
for giving us some time. That is Phil Smith, executive
and owner, executive producer, rather and owner at Great Southern TV.
Speaker 1 (07:45):
For more from News Talks b listen live on air
or online, and keep our shows with you wherever you
go with our podcast on iHeartRadio
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