Annie Murray and Harry Harrison: NZ Film CEO and Screen NZ Chair on screen rebate boost

Economic Growth Minister Nicola Willis announced today that the Government will boost New Zealand's screen rebate for the goal of bringing Hollywood back to New Zealand. 

Overseas productions will now be able to claim a 25% rebate on what they spend here, up from 20%, when they invest more than $20 million.

Australia currently offers up to 40% while Canada and the UK offer around 30%.

Harry Harrison said to Heather du Plessis-Allan, "I wish we were sort of higher, but it allows us to play in the sand pit." 

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Episode Transcript

Speaker 1 (00:00):
Now the government's boosting incentives to bring Hollywood back to
New Zealand. Overseas productions can now claim a twenty five
percent rebate on what they spend here. That's up from
twenty percent, and it's all about making New Zealand more competitive.
On the other hand, Australia offers up to forty percent,
Canada and the UK around thirty percent also, and this
is a change for the first time. Post production and
visual effects companies like Wetter Effects can apply for this

(00:21):
as well. Now with us to discuss, we have Annie Murray,
the head of the New Zealand Film Commission, and Harry Harrison,
who's the vice chair of Screen New Zealand International. Hire
you too, Harry, Are we actually competitive though? Because I
just read you those numbers right, we're at twenty five percent,
but Australia is at forty percent.

Speaker 2 (00:39):
Well, not all of Australia is at forty percent, And
there are some underlying factors here in New Zealand that
do a low ust A punch above and wheat. So
there's an exchange rate differential anyway between Australia and New
Zealand straight away that's usually in our favor of five
cents six seven cents, and there are some ease of
doing business benefits of being in New Zealand that don't

(01:02):
exist in Australia, unionization and penalty rates. We're a more
efficient business model here in New Zealand, which it's kind
of triple bottom line. You have to look for the benefits,
but we can sort of stack up. The forty percent
in Australia really doesn't apply to all productions. There are

(01:23):
some states that offer a bit of a kicker, but
that's not even guaranteed either. So I think what we
have as a twenty plus five incentive that gets you
to twenty five, that's certain. It's quite straightforward. It does
allow us to punch a bobber weight. It's if we
were at thirty or forty percent, we would be the
most globally competitive country in the world. I wish we

(01:44):
were sort of higher, but it's it allows us to
play in the sandpit.

Speaker 1 (01:49):
What's brought us on Harry. Has there been a lack
of interest?

Speaker 2 (01:54):
There has been There has been the last since September
October November last year, there's been a marked decline and
inquiries and studio bookings. There is a global is the
business model, the studio streaming business model has changed. It
wasn't sustainable. There's been consolidation, fewer projects, lower budgets, and

(02:18):
you know, when the world is busy and newsually't got
quite a lot of activity. When the world is a
bit quieter, it's a lot harder for us to win
projects down here to southern Hampshire and turning a distance
makes a difference. Yeah, I believe that.

Speaker 1 (02:31):
Annie, listen, can you explain to me this change about
the visual effects companies and stuff like this? I mean
this has been read by some as just a backdoor
bailout for wetter effects. Is that what's going on?

Speaker 3 (02:41):
No? Yeah, what happened here is that the visual effects
companies have always been able to apply for a rebate.
What this does is it brings the very high value
ones into line with other productions for the live action productions.
So live action have always been able to apply to
the extra five percent. So now we're matching that if
the visual effects companies able to do the same.

Speaker 1 (03:03):
Now, Annie, do you think what are you hearing? Are
people interested in this? People want to make some films here?

Speaker 3 (03:08):
Very interested?

Speaker 2 (03:09):
Yes, we have names for us, Annie.

Speaker 3 (03:12):
Oh I can't do that. I'm sorry. They are all
confidential business discussions. But Philip and Mossman from my team
was in Los Angeles in the last months having conversations saying, look,
these are some of the things that we may be
able to change. If we did, how would that look
for you? And there was a lot of interest. So

(03:32):
we're really optimistic that these changes are going to make
the different.

Speaker 1 (03:36):
Harry, do you know anything about what's going on with
Trump's one hundred percent tariffs?

Speaker 2 (03:42):
I don't know if anything's going on with them. It
was it was a tweet. It's not policy, and my
contacts in Los Angeles are they're quite clear that there
are a number of other initiatives that they would prefer
the administration tools.

Speaker 1 (03:56):
Harry, you sounding you're making it sound like he said
tweet and he's not planning to do it. Is that
what you think is going on?

Speaker 2 (04:03):
I believe that the US industry is urging the government
over there to look at other initiatives well ahead of
doing that, and I believe that he's got buy in
from his Hollywood ambassadors have agreed sort of come around
to some of the initiatives that they're suggesting.

Speaker 1 (04:23):
Are you as hopeful as this any.

Speaker 3 (04:25):
Well, what we've seen is that some American jurisdictions have
increased incentives in the last few months, so there has
been a response. California's done that New York has as well.
So Harry's right, there has been an industry response which
has meant that more production is staying in America. He's

(04:47):
the need for us to make some change to make
our offering a bit more competitive.

Speaker 1 (04:52):
Yeah, hey, guys, listen, Thanks very much. I hope it
goes as well as you think it will. Annie Murray,
New Zealand Film Commissioned CEO, Harry Harrison, Vice Chair of
Screen New Zealand International. For more from Hither Duplessy Allen Drive,
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