Hobbit tax cut needs an overall business sequel

The saving of the Hobbit movie and its production in New Zealand rather than taking off overseas by pumping taxpayer dosh into it puts me in a quandary.

Like most Kiwis I wanted the Hobbit to be made here and after New Zealand and foreign unions put that prospect at risk by black banning the movie back in August (read the ban documents here) I, like the majority of us was hobbit mad.

Rightly so, at risk was $670 million of badly needed foreign moola pumped into the Hobbit and the local economy and billions of dollars of future earnings at risk from other movie projects because of bone headed unions and brain dead actors.

Those future projects are still at risk due to the Hobbit fracas.

John Key has saved the day and boy did he do well to stitch up a last minute deal. US$ 20 million of taxpayer dosh was used to sweeten the deal by providing bigger "tax incentives".

This is what I am in a quandary about however.

I am clearly for the Hobbit being filmed here but I am against corporate welfare, which giving $20 million of taxpayer cash to Warner Brothers to make the movie is.

The movie will be a net earner for the country, $NZ670 million in direct revenue, plus possible billions in intangibles like more tourists, less just under NZ$100 million in taxpayer incentives, so it is moola well spent but what makes the movie industry so special?

Frankly it aint.

While it supposedly provides around NZ$3 billion in annual foreign revenue it is nowhere near our biggest industry or earner of foreign exchange.

That precious prize goes to tourism as a whole and the Dairy Industry comes in as the second sequel in the foreign earnings blockbuster stakes.

Of course these two industries are currently being hammered by increased government imposed cost through harebrained carbon taxes and other environmental extremism and a penchant for the Nats to roll over private property rights, so land owners cannot sell their properties to the highest bidder.

So you can see why I am in two minds cant you?

If the National Government thinks lowering taxes (effectively that is what tax incentives are) to make movies here is a good idea - and I think it is - then why not lower taxes for other industries as well.

We know lower taxes stimulate the economy from a personal tax cut point of view and the same is true of lower taxes for business.

They are a good thing!

Why not have lower taxes for all business instead of Governments trying to pick their favourite business of the moment.

With the Hobbit they have chosen a clear winner but when have you seen Governments of any hue pick business winners?

The answer lies in a long record of wasted billions in failed businesses.

So John, you did well this time but if you are listening I know you know that lower taxes are great for our economy, it shows in your policies. Why not spread the tax love around and let business choose what they do with that extra dosh rather than you.

It will make the forthcoming blockbuster Hobbit movies look like an art film by comparison.


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A Perfect Gentleman: The Sir Wilson Whineray Story



c Share Investor 2010

Actors Union actions a blast from the past

Well, sniveling actor union members like Jennifer Ward-Lealand, Bruce Hopkins, and Robyn Malcolm have managed to bully, manipulate and organise the movement of the Hobbit sequel out of New Zealand to somewhere in Eastern Europe.

They wanted to make a point and it looks like they have. The New Zealand film industry now appears to be on the edge of the abyss thanks to the grandstanding, sniveling wet left bullying of Peter Jackson.

The actors union wanted collective bargaining on future film contracts when this couldn't happen as it was an illegal practice due to New Zealand employment laws.

Their move has now cost the country the thick end of $500 million for the Hobbit movie and billions more for future movies that will no doubt end up being made in Europe.

As happened to this country from the 1950s to the 1980s and a pathetic resurgence by bully boy teachers unions today, the only outcome for the respective industries bullied by those unions are always negative for everyone concerned.

In the 1950s the Watersiders union brought the country to its knees, while every union had a go in the 1970s and 80s and had similar deleterious effects on the country and its economy.

The teachers union has brought the education system to its knees and The NZ actors union has now single handedly ruined the film industry here in a few short weeks of stupidity.

The very people unions profess to "look after", the workers, are the very ones who end up with the short end of the stick and the only winners seem to be the union heads who manage to get attention and make a name for themselves.

It seems the actors union are out of touch with the realities of the economy today and are stuck in a 1950s time warp that has no relevance today. We are suffering through the worst economic conditions in more than 70 years. They should feel extremely lucky to work at all.

Their selfishness has cost thousands of actors and technicians jobs now and into the future.

Pathetic, left wing bullshit.

c Darren Rickard 2010