Nicola Willis: Finance Minister on film subsidy, groceries

The finance minister’s making more commitments ahead of next week’s budget.

In her pre-budget announcement, the finance minister said $577 million will be injected into film and television projects over the next four years.

Willis said the approach is necessary to compete with our neighbours across the ditch and further abroad.

LISTEN ABOVE.

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Afternoon. Now we have been told that the budget is
not a lolly scramble, but the film industry is getting
six hundred million dollars worth of lollies in the form
of subsidies. The rules stay unchanged. Eligible productions can get
a rebate of up to twenty five percent of production
costs and the Finance Minister, Nicola Willis's with us, he
Nicola high Heather. Now that sounds really cynical, but the
truth is we actually don't have an option as a country,

(00:21):
do we.

Speaker 2 (00:22):
We don't. If we don't do this rebate, then our
film industry will pack up its bags and leave overnight.
And that's because around the world there's about one hundred
countries who do different rebate schemes. Australia, the UK, all
of the countries we're competing with, and it's your ticket
to the game. If you don't do the rebate, people
won't even think about filming here. With the rebate, we

(00:43):
can then say well, we're the best place to come
to because we've got the best landscapes, the best post production,
the best digital effects. Our rebate's actually at the lower
end of the scale internationally, but because of all of
those other factors. It keeps it going, and it supports jobs,
it supports growth, we get income tax return, so it
works for New Zealand's economy apparently.

Speaker 1 (01:03):
Is it true that they've taken about a billion dollars
in subsidies just in the last five years, I mean,
is that worth it?

Speaker 2 (01:08):
In the past ten years, they've taken one and a
half billion dollars worth of rebate. But in return, New
Zealand has got seven and a half billion dollars worth
of investment from that industry, and that has meant that
there's been money spent in the economy. There's been people
that have been hard jobs that have been created, tax
paid by those people in those jobs, and these are

(01:30):
highly paid jobs, highly skilled and it leads to really
great development. So all in all, it's one of those things.
I'm not a big fan of subsidies. I'm not a
fan of industry incentives, but with this one, I can't
keep a straight face and say I care about the
growth of the New Zealand economy and then kill an industry.
That wouldn't be right. So we're making sure the funding's there,

(01:51):
just really quickly.

Speaker 1 (01:52):
It's technical, but I see you're bumping up the amount
that is allocated for this financial year. The one that
we're at is that because it's oversubscribed.

Speaker 2 (01:59):
Yeah, that's because there have been a number of productions
which will be applying for rebates that apply to this year,
so we're making sure the funding's there. Part of this
is a story about fiscal cliffs and all of that
sort of thing, which is traditionally this has only been
funded just in time, and we're making sure there's enough
money in the baseline for future years so that the
industry can have certainty and confidence. This scheme is around

(02:21):
to stay. Come to New Zealand to make your movies.

Speaker 1 (02:24):
Okay, hey, did you see Wilworth's is blaming GST for
the grocery prices in this country.

Speaker 2 (02:29):
Well, I think that's a bit rich. I mean, seriously,
they have every opportunity to lower their prices. They choose
not to because it's not very competitive. And my view is, yep,
the government has some things that does. It needs to
keep inflation under control, it needs to keep other costs
down where it can. But Wilworth's has a big job
to do and trying to deflect like that is very disappointing.

Speaker 1 (02:50):
Nichola, Thanks very much for your time. Nichola Willis Finance
Minister and Economic Growth Minister.

Speaker 2 (02:55):
For more from Heather duplicy Ellen Drive Listen live to
news talks they'd be from four pm weekdays, or follow
the podcast on iHeartRadio