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Should we call you New Zealand or Middle Earth?	
  
	
  
'Film creates culture, builds identity and markets that identity to the world. Film tells potent New
Zealand stories. Those stories and the voices, characters and landscapes which constitute them give
expression to our identity. They create culture'1	
  
	
  
'The outstanding financial and critical success of Jackson's Lord of the Rings (2001-2003) has, it
would seem, silenced the demands of cultural nationalists for New Zealand content and an
indigenous identity on screen'2	
  
	
  
4.5 million people populate New Zealand's 270,000 km2
body of land, they are located
approximately 11,000 km from Hollywood, the world centre of large-budget film production.
Similar to other small countries, New Zealand's national film industry faces the struggle of
attaining either financial success, cultural relevance or both. The quotes above demonstrate this
divide that exists between creating a cinema representative of New Zealand's culture and one
capable of making sizeable financial returns. Writing on the nearest national cinema and
comparable in several respects, Elizabeth Jacka comments that the Australian film industry: '… is
not metropolitan enough to be in the international mainstream of either intellectual or artistic life,
and not marginal enough to be exotic'3. Considering this dilemma, in this essay I will investigate
how the financial and critical success of The Lord of the Rings trilogy4 can be seen to have affected
two separate New Zealand film funding initiatives and their directed support to either commercial
or cultural film production. In what follows I will analyse the Large Budget Screen Production
Grant (LBSPG) and the Screen Production Incentive Fund (SPIF). Through consideration of
government reviews and evaluations of these initiatives I will assess the effectiveness of the
schemes based on their original objectives. Further to this I will also review comments from critics
1
Ruth Harley, 'Cultural Capital and the Knowledge Economy', (1999)
	
  
2
Mayer, Geoff and Keith Beattie, The Cinema of Australia and New Zealand (London: Wallflower Press, 2007), p.
8-9
	
  
3
Jacka, Elizabeth., 'Australian cinema', in John Hill and Pamela Church Gibson, World Cinema Critical Approaches
(Oxford: Oxford University Press, 2000) pp. 132
	
  
4
The Lord of the Rings trilogy, directed by Peter Jackson (New Line Cinema: New Zealand, 2001-2003)
	
  
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such as Trisha Dunleavy and Joyce Hester5, who address the significance of New Zealand film and
television as important cultural and creative industries.	
  
New Zealand is not a nation new to film, screening of motion pictures started in 1896 and
they shot their first film in the country two years later. The industry was small-scale with national
directors creating New Zealand themed feature films and until 1978, opportunities for filmmakers
were scarce. The New Zealand Film Commission (NZFC) was established by the government that
year with the primary functions: '(a) to encourage and also to participate and assist in the making,
promotion, distribution, and exhibition of films: (b) to encourage and promote cohesion within the
New Zealand film industry'6. As such the administration of the LBSPG and the SPIF were part of
their remit when introduced by the government. As a marker of the NZFC's importance in
promoting accessible film production, their website boasts that in the 36 years since they were
established, more than 300 feature films have been made in New Zealand7. The vast majority of
these received funding support from the commission or the government grants they administer,
comparatively, the preceding 30 years saw fewer than 20 feature films made in the country8. As
these figures show, the intervention of the state in matters of film production proved essential in
developing the sector. In their book investigating the cinema of small nations, Mette Hjort and
Duncan Petrie9 explore the difficulties faced by small national cinemas in the face of a dominant
production force such as Hollywood. Duncan Petrie discusses the role governments previously
performed and continue to play currently, suggesting that: 'While historically state intervention in
film production had been a protective response to Hollywood domination, the new global economy
has created the situation in which governments can actively assist transnational corporations while
simultaneously serving the national interest'10. Two films in the 1990's particularly typify this state
5
Dunleavy, Trisha and Joyce Hester, New Zealand Film and Television: Institution, Industry and Cultural Change
(Bristol: Intellect, 2011)
	
  
6
New Zealand Legislation, 'New Zealand Film Commission Act 1978', (1978)
	
  
7
New Zealand Film Commission, 'Key Facts', (2014)
	
  
8
New Zealand Film Commission, 'Key Facts', (2014)
	
  
9
Hjort, Mette and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press, 2007)
	
  
10
Petrie, Duncan., 'New Zealand', in Mette Hjort and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana
University Press, 2007) p. 161
	
  
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aided situation of assisting commercial gains whilst representing the nation. Heavenly Creatures11
was based on a notorious true story from New Zealand's history, and Once Were Warriors12 is an
affecting portrayal of Maori adaptation to urban life. Both films were funded by the NZFC and
went on to profit at the international box office with Once Were Warriors accumulating $25
million13. 	
  
The NZFC is not the only promoter of New Zealand film production, assistance has also
taken the form of international financing and co-productions, caution must be taken with regards to
their financial motivations though. One such example of this arrangement is highlighted by The
Piano14 which received majority French funding, the global success of the film far surpassed the
previous examples mentioned. According to its producer Jan Chapman, almost a year after its
release, it had earned $116,695,94715. This can be seen as the result from characteristics of what
Ben Goldsmith, Susan Ward and Tom O'Regan term a 'Local Hollywood'16. Their book charts the
forces and innovations that occurred to move production from outside the borders of California,
they describe 'Local Hollywood's' as locations with advantageous attributes to film production such
as people, place; providers, financing; story settings and locations17. These significant centres of
film production are a marker of the globalisation of Hollywood and whilst they provide the best
platform for film production, it is ideal for the Hollywood model favouring financial success over
any accurate national representation. For New Zealand there is one film series that exemplifies this,
The Lord of the Rings (TLOTR) trilogy, which unadjusted for inflation, took a worldwide gross of
$2,911,400,00018. After this large-scale economic success, favourable conditions in New Zealand
were created and capitalised upon by other sectors such as tourism and special effects companies.
11
Heavenly Creatures, directed by Peter Jackson (WingNut Films: New Zealand, 1994)
	
  
12
Once Were Warriors, directed by Lee Tamahori (New Zealand Film Commission: New Zealand, 1994)
	
  
13
Paul Stanley Ward, 'Once Were Warriors', (2008)
	
  
14
The Piano, directed by Jane Campion (Australian Film Commission: New Zealand, 1993)
	
  
15
Crofts, Stephen., 'Foreign Tunes? Gender and Nationality in Four Countries' Reception of The Piano', in Harriet
Margolis, Jane Campion's The Piano (Cambridge: Cambridge University Press, 2000) p. 135
	
  
16
Ben Goldsmith, Susan Ward and Tom O'Regan, Local Hollywood Global Film Production and the Gold Coast
(Queensland: University of Queensland Press, 2010) p. 4
	
  
17
Ben Goldsmith, Susan Ward and Tom O'Regan, p. 4-11
	
  
18
Box Office Mojo, 'The Lord of the Rings', (2014)
	
  
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Tourism New Zealand (TNZ) continues to market the country as Middle Earth with a recent
campaign titled: '100% Middle Earth, 100% Pure New Zealand'19. The issue faced from all this
success is the inaccurate representation of New Zealand that is not only created on screen, but also
then absorbed and distributed in other forms. Forgotten are the stories of Maoris and other real-life
New Zealanders and it is in this climate that the government introduced the LBSPG. This scheme
would seem to compound the problem of cultural representation in film by focusing on
incentivising the production of large budget productions.	
  
Launched in 2004, the Large Budget Screen Production Grant (LBSPG) had the primary aim
of increasing: '… economic growth by providing a financial incentive to attract large scale screen
production to New Zealand, which would be unlikely to come in the absence of such incentives'20.
As detailed in the Ministry of Business, Innovation & Employment's evaluation of the LBSPG
from 2004 until 2011: The financial incentive offered was originally a 12.5% rebate on Qualifying
New Zealand Production Expenditure (QNZPE), where the New Zealand expenditure was NZ$15
million or more21. Dunleavy and Hester note that New Zealand companies were eligible to apply
for the LBSPG but the large sums of investment capital required tended to exclude them22. The
previously mentioned New Zealand films from the 1990's had a combined budget of less than the
eligible amount required to receive any LBSPG rebate, as such it can be seen that productions like
TLOTR, with an estimated budget of almost $297 million23 were the intended recipients. The
effectiveness of the grant in commercial terms, and the appeal to producers of large budget
productions has been well recorded. In a discussion paper examining the growth and dynamics of
the New Zealand Screen Industry, the Ministry of Economic Development quote figures showing
that between the years 2005 and 2011, direct economic impact of the production and post-
production sector has increased its contribution to Gross Domestic Product (GDP) from 0.25% to
0.47%24. Referring to Table 1, producers of films qualifying for LBSPG were asked to select the
19
Tourism New Zealand, '100% Middle Earth', (2013)
	
  
20
Ministry of Economic Development, 'Large Budget Screen Production Grant Overview', (2009) p. 2
	
  
21
Ministry of Business, Innovation & Employment, (2012) p. 20
	
  
22
Dunleavy, Trisha and Joyce Hester, p. 223
	
  
23
DiMare, Philip C., Movies in American History: An Encyclopedia, Volume 1(California: ABC-CLIO, 2011) p. 309
	
  
24
Ministry of Economic Development, 'Discussion Paper Growth and Dynamics of the New Zealand Screen
Industry', (2012) p. 6
	
  
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influence the initiative had on their decision to film in New Zealand. It reveals that of the 35
qualifying films, 30 rated the LBSPG as at least very important, with those productions accounting
for 90% of the total QNZPE spent.	
  
	
  
Influence of
LBSPG	
  
Extremely
Important
70-90%	
  
Very
Important
50-70%	
  
Important
30-50%	
  
Partly
Important
10-30%	
  
Not
Important
0%	
  
Number of
Productions	
  
9	
   21	
   -	
   2	
   3	
  
Total QNZPE
(NZ$M)	
  
$731.9	
   $1,011.3	
   -	
   $98.6	
   $95.3	
  
Average QNZPE
(NZ$M)	
  
$81.3	
   $48.2	
   -	
   $49.3	
   $31.8	
  
Table 1: Influence of LBSPG25
	
  
The influence of TLOTR and the state desire for economic improvement can be seen again three
years into the scheme when adjustments were made which increased the grant to 15% of QNZPE
and even more revealingly, allowed for the bundling of productions. Bundling applies to two or
more screen productions, where each production spends a minimum QNZPE of NZ$3 million or
more and together they are combined to achieve a total QNZPE of NZ$30 million or more26. The
first two Chronicles of Narnia2728 film adaptations narrowly missed out on the opportunity of
bundling. Fortunately for the financiers, they qualified for individual grant support with their
estimated total budgets of $150 million29 and $225 million30 respectively. Unfortunately for the
25
Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen Production Grant 2004-
2011', (2012) p. 55
	
  
26
Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen Production Grant 2004-
2011', (2012) p. 86
	
  
27
The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, directed by Andrew Adamson (Walt Disney
Pictures: USA, 2005)
	
  
28
The Chronicles of Narnia: Prince Caspian, directed by Andrew Adamson (Walt Disney Pictures: USA, 2008)
	
  
29
Williams, Thomas, Following Prince Caspian: Further Encounters with the Lion of Narnia (Nashville: Thomas
Nelson, 2008) p. 60
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representation of New Zealand as a culture, it was yet again promoted as a land of fantasy.	
  
The financial value of purchasing the filmic representation of New Zealand is very
desirable for a government wishing to foster an environment bringing economic improvement on
the scale of TLOTR. With King Kong31 and Avatar32 that figure was $389 million33 and $307
million34 respectively. This amount is the QNZPE and as a result a generous grant of $48.6
million35 and $44.69 million36 was provided. The majority most likely returning to the American
producers Universal Pictures and Twentieth Century Fox for their original investment. The aims,
criteria and financial alterations to the LBSPG are revealing of their economic focus. The proof of
the schemes appeal for producers though is validated at the box office where Avatar took an
estimated $2,787,965,08737 worldwide. This revenue is impressive but reflective of the success
made by production companies, in these instances American, not the direct impact upon New
Zealand. However, an informative insight is offered through analysis of government statistics for
the screen industry between 2005, one year after its inception, and 2012, nearing a decade of
continuing support. Gross revenue for the production and post-production sector increased from
$NZ 1,294 million38 to $NZ 1.67 million39 with the USA remaining the largest international
financier with contributions exceeding $500 million4041. Importantly, feature film and short film
	
  
30
Schatz, Thomas., 'Movies and a Hollywood Too Big to Fail', in Timothy Corrigan, American Cinema of the
2000s: Themes and Variations (New Jersey: Rutgers University Press, 2012) p. 207
	
  
31
King Kong, directed by Peter Jackson (Universal Pictures: USA, 2005)
	
  
32
Avatar, directed by James Cameron (Twentieth Century Fox Film Corporation: USA, 2009)
	
  
33
Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)
	
  
34
Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)
	
  
35
Petrie, Duncan., p. 168
	
  
36
Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)
	
  
37
Box Office Mojo, 'Avatar', (2014)
	
  
38
Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 3
	
  
39
Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 2
	
  
40
Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 3
	
  
41
Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 3
	
  
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made a combined $699 million in 200542, with feature film alone then making an impressive $1.04
billion in 201243. These figures attest to the LBSPG's commercial success and confirm Petrie's
examinations regarding the ability for governments to serve the national interest whilst assisting
transnational corporations. As mentioned, the problem of this initiative is the lack of focus toward
cultural depiction, so obvious is the government intention for this scheme that it is not surprising
for Dunleavy and Hester to note its creation required additional working partnerships between the
NZFC and the government. This resulted in the inclusion of representatives from the Ministry of
Economic Development on the first board44, blurring the lines between direct and indirect state
involvement. Here the cultural representation charged to the NZFC appears to be ignored and the
country loses its national identity through film. Reviewing the NZFC's ability to orchestrate the
LBSPG, New Zealand Equity suggested the scheme: '… should be administered by the Ministry of
Culture and Heritage rather than the NZFC' as, '… the NZFC should focus on its cultural remit ...
i.e supporting those productions that have significant NZ cultural content'45. 	
  
To remedy the situation, in 2009, the NZFC were again entrusted to administer a new grant
scheme introduced by the government. The Screen Production Incentive Fund (SPIF) can be seen
as a cultural antidote for film production that had become too commercially focused. Dunleavy and
Hester note the importance of the New Zealand film industry as a significant site for cultural
influence, where films are the primary vehicle for progressing cultural objectives46. However and
unfortunately for audiences, they note that New Zealand films: '... have remained a minority
element of the total viewing experience of New Zealanders', due to the '... ready availability and
contrasting abundance of imported examples'47. The intentions of the SPIF can be seen to reflect
this importance as the main objectives are to: 'Support increased production of medium and larger
scale New Zealand cultural screen content, for the benefit of audiences; support the retention of
New Zealand screen talent, stories and infrastructure'48. Unlike the LBSPG, the SPIF requires a
42
Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 1
	
  
43
Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 2
	
  
44
Dunleavy, Trisha and Joyce Hester, p. 223
	
  
45
New Zealand Equity and the Media, Entertainment & Arts Alliance, 'NZ Government Review of the New Zealand
Film Commission', (2009) p. 5
	
  
46
Dunleavy, Trisha and Joyce Hester, p. 17
	
  
47
Dunleavy, Trisha and Joyce Hester, p. 24
	
  
48
Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 7
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film production to have significant New Zealand content in order to qualify, the guidance
framework can be seen in table 2: 	
  	
  
Significant New Zealand Content Areas	
   Points Available	
  
A - New Zealand Subject Matter	
   	
  
A1 - Setting	
   3 (0 - 3)	
  
A2 - Lead Characters	
   3 (0 - 3)	
  
A3 - Creative Material	
   3 (0 - 3)	
  
A4 - Contribution to New Zealand Culture/History	
   2 (0 - 2)	
  
Total - Section A (minimum: 3 for feature film, 2 for other formats)	
   11	
  
B - New Zealand Production Activity	
   	
  
B1 - Shooting - Location/Studio	
   2 (0 - 2)	
  
B2 - Visual Post-Production, Digital or Visual Effects, Research and
Development	
  
2 (0 - 2)	
  
B3 - Music Recording, Voice Recording, Audio Post-Production	
   1	
  
Total - Section B	
   5	
  
C - New Zealand Film-Makers	
   	
  
C1 - Director	
   2 (0 - 2)	
  
C2 - Producer	
   2 (0 or 2)	
  
C3 - Scriptwriter	
   2 (0 - 2)	
  
C4 - Music Composer/Source Music	
   1	
  
C5 - Lead Actors	
   2 (0 - 2)	
  
C6 - Majority of Cast	
   1	
  
C7 - Key Production Staff - DOP, Editor, Designer, Effects Supervisor	
   2 (0 - 2)	
  
C8 - Majority of Crew	
   1	
  
Total - Section C (minimum 3pts from C1 - C3)	
   13	
  
D - Other Relevant Matters	
   	
  
D1 - Ownership of Copyright	
   1	
  
D2 - Any other relevant matters - business development outcomes	
   1	
  
Total - Section D	
   2	
  
Total - minimum 20 (feature film) or 15 (other screen formats)	
   __ (out of 31)	
  
Table 2: SPIF Assessment of 'Significant New Zealand Content' Guidance - Points Framework49	
  
	
  
49
New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', (2013) p. 29
	
  
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It is interesting to note that a minimum amount of points need to be achieved in regards to the
sections on New Zealand subject matter and New Zealand film-makers including cast and crew.
Yet there is no minimum for pre-production and post-production or any actual location/studio
shooting in the country. Whereas the requirement to qualify for the LBSPG was to spend as much
in the country regardless of cultural representation, as was the apparent desire to exploit the
landscapes of the country as those of fantasy worlds. Here the precondition is that cultural
representation and the support of the New Zealand production talent and its infrastructure is
achieved, there is no actual requirement to portray the country itself. Once a production has
reached the required 20 points, spent a minimum of $2.5 million and maximum of $15 million in
QNZPE, it is able to receive a grant of 40% of the total QNZPE it has spent50. Table 3 contains
revealing statistics for the importance of the SPIF to producers:	
  
	
  
	
  
Pre-SPIF 	
  
(2006/7-2007/8)	
  
Post-SPIF	
  
(2008/9-2010/11)	
  
Total NZ Spend	
  
	
  
$19.2 ml	
   $56.4 ml	
  
Producer's Intentions Without
SPIF	
  
Would Have Relocated Offshore 1/12	
  
Might Have Relocated Offshore 2/12	
  
No Change 9/12	
  
Table 3: Pre and Post SPIF Feature Film Comparisons - New Zealand Spend, Importance of SPIF
to Budgets and to Producers51	
  
	
  
	
  
75% of producers were not influenced by the SPIF in their decision to shoot their productions
partly or wholly in New Zealand; only one of the twelve based their decision to film in the country
on the fund. This could be interpreted that their desire to represent the national culture and use
New Zealand filmmaking talent was more important to them than financial gain.	
  
Written and directed by a New Zealander; produced by a New Zealander, starring New
Zealand actors as Maori's; scored by a New Zealand band, set and shot in New Zealand, the list
50
New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', (2013) pp. 3-5
	
  
51
Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 16
	
  
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goes on for just how 'New Zealand' Boy52 is. It was a recipient of the SPIF, nominated for thirteen
awards at the 2010 Qantas Film and Television Awards, and set the record for the highest grossing
New Zealand film at the domestic box office53. It proved to be a film both culturally and
commercially successful, validating the creation of the SPIF. Further proof of its success, and
importance to cultural representation can be concluded from tables 3 & 4. 	
  
	
  
	
  
Pre-SPIF 	
  
(2006/7-2007/8)	
  
Post-SPIF	
  
(2008/9-2010/11)	
  
No. of films > $4 ml budget	
   4	
   9	
  
Average budget	
  
	
  
$9.5 ml ($5.6 - $16.6 ml)	
   $7.5 ml ($4.5 - $10.7ml)	
  
Av. box office receipts 	
  
	
  
$0.3 ml ($0.2 - $0.5 ml)	
   $1.2 ml ($0.1 - $8.3 ml)	
  
Table 4: Pre and Post-SPIF Feature Film Comparisons - Number, Budget Size and Box Office
Receipts54	
  
	
  
	
  
They reveal that total New Zealand spend on comparable feature films almost tripled between the
pre-SPIF and post-SPIF years showing economic improvement. The number of films with budgets
smaller that $4 million more than doubled and the average budget decreased by 21%, suggesting
that film production is more achievable and infrastructure might have been enhanced. Further to
this, it conclusively means that more culturally significant films have been made, as those that fall
into this budget category would have all had to pass the cultural content test to receive the SPIF.
Finally, but just as revealing of the SPIF's success in achieving its objectives, the 400% higher
average box office shows that more people are seeing these films. However, this final figure is not
wholly representative, it would be much lower without the inclusion of Boy as its box office
success far surpassed any of the others. Table 5 shows the QNZPE; awarded SPIF and NZ box
office receipts for some of the SPIF funded films. 	
  
52
Boy, directed by Taika Waititi (Whenua Films: New Zealand, 2010)
	
  
53
New Zealand Film Commission, 'Annual Report 2010-2011', (2011) p. 16
	
  
54
Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 14
	
  
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Name of
Production	
  
Format	
  
QNZPE 	
  
$	
  
SPIF	
  
$	
  
NZ Box
Office
Receipts - $	
  
Total Govt
Contribution
To Budget - %	
  
2008/09	
   	
   	
   	
   	
   	
  
2009/10	
   	
   	
   	
   	
   	
  
Under the
Mountain	
  
Feature film	
   9,983,803	
   3,993,521	
   246,577	
   	
  
Separation City	
   Feature film	
   5,114,599	
   2,045,840	
   498,411	
   	
  
Emilie Richards -
Tales of the South
Pacific	
  
TV series	
   3,700,886	
   740,177	
   	
   	
  
Mataraki	
   Feature film	
   4,207,582	
   1,683,033	
   15,490	
   	
  
Boy	
   Feature film	
   5,167,563	
   2,067,025	
   8,286,389	
   	
  
Total 2009/10	
   	
   28,174,433	
   10,529,596	
   	
   	
  
2010/11	
   	
   	
   	
   	
   	
  
Bite Me	
   TV series	
   2,251,471	
   450,424	
   	
   	
  
Predicament	
   Feature film	
   6,011,059	
   2,404,424	
   138,255	
   	
  
Tracker	
   Feature film	
   6,382,988	
   2,553,195	
   57,170	
   	
  
Hopes & Dreams	
   Feature film	
   4,708,953	
   1,883,581	
   59,979	
   	
  
Love Birds	
   Feature film	
   8,583,089	
   3,433,236	
   511,359	
   	
  
Emilie Richards -
Tales of the South
Pacific (Season 2)	
  
TV series	
   3,700,886	
   930,882	
   	
   	
  
ICE	
   Feature film	
   6,223,344	
   2,489,338	
   	
   	
  
ICE	
   TV series	
   8,296,825	
   1,659,365	
   	
   	
  
Total 2010/11	
   	
   46,158,615	
   15,804,315	
   	
   	
  
Total 2008/9-
2010/11	
  
	
   74,333,048	
   26,333,911	
   	
   	
  
Average 2008/9-
2010/11	
  
	
   	
   	
   1,226,704	
   70	
  
Table 5: Details of SPIF Funded Productions55	
  
55
Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 12
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The next nearest financially successful film at the box office to Boy was Love Birds56, which
attracted only 6.17% ticket sales in comparison. For commentators arguing economic development
of the industry over national representation, Mataraki57 is their proof. In box office receipts it
didn't even make 1% of the amount the SPIF awarded it for qualifying expenditure. It must be
noted that box office is not the gauge of success though, the scheme is intended to represent New
Zealand culture for audiences and support national filmmakers and it has achieved this. Even the
commercially unsuccessful funded films like Mataraki have been judged as culturally significant
and the increased number of them thanks to the SPIF means more production money is being spent
in and on the country. Unfortunately, this economic success is low and the national representation
is favourable but not capable of supporting the industry. Avatar spent $307 million in New Zealand
expenditure; all the SPIF films combined from the period analysed spent only 24% of that one
LBSPG attracted film.	
  
A continual source of money flowing into their country is favoured by all nations of the
world. The Lord of the Rings trilogy brought this to New Zealand and the state reacted by
incentivising and fostering an environment where it could happen again and again. The LBSPG
was a success in this regard and revealed the extent of government involvement in the development
of the film industry. Examining entrepreneurship in the creative industries, Colette Henry suggests
that: 'The strategic state is a key driver of innovation in the national economy and is seen as a
catalyst in the creation of favourable systemic conditions'58. Government intervention was again
felt with the SPIF, its creation was not directly influenced by TLOTR but rather from that trilogy's
effect on the LBSPG and the cultural failings it had. 2014 saw the state at it again with the
introduction of another scheme, the New Zealand Screen Production Grant (NZSPG). Offering a
20% grant for international productions with an additional 5% for those passing a significant
economic benefits test, and a 40% grant for New Zealand productions with more flexibility in
defining a New Zealand production (2014)59. This should continue to attract large budget
	
  
56
Love Birds, directed by Paul Murphy (General Film Corporation: New Zealand, 2011)
	
  
57
Mataraki, directed by Michael Bennett (Filmwork: New Zealand, 2010)
	
  
58
De Breun, Anne., 'Building the film industry in New Zealand: an entrepreneurship continuum', in Colette Henry,
Entrepreneurship in the Creative Industries: An International Perspective (Gloucestershire: Edward Elgar
Publishing Limited, 2007) p. 95
	
  
59
New Zealand Film Commission, 'New Zealand Screen Production Grant Comes Into Effect', (2014)
	
  
Page	
  13	
   Student	
  Number:	
  27488276	
  
productions whilst increasing those films deemed to have significant contribution to New Zealand's
representation. But with the Avatar sequels reportedly considering returning to New Zealand for	
  
production with an estimated spend of $NZ 500 million (2014)60, will this grant crack the cultural
and commercial balance? 	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
60
Nick Goundry, 'New Zealand Screen Production Grant comes into effect to boost location filming', (2014)
	
  
Page	
  14	
   Student	
  Number:	
  27488276	
  
Bibliography:	
  
Ben Goldsmith, Susan Ward and Tom O'Regan, Local Hollywood Global Film Production and the
Gold Coast (Queensland: University of Queensland Press, 2010) 	
  
Bennett, James E and Rebecca Beirne, Making Film and Television Histories: Australia and New
Zealand (London: I.B.Tauris & Co Ltd, 2011)	
  
Box Office Mojo, 'Avatar', Box Office Mojo Website, (2014)
http://boxofficemojo.com/movies/?id=avatar.htm	
  [accessed	
  December	
  2014]	
  
Box Office Mojo, 'The Lord of the Rings', Box Office Mojo Website, (2014)
http://www.boxofficemojo.com/franchises/chart/?id=lordoftherings.htm	
  [accessed	
  December	
  
2014]	
  
Crofts, Stephen., 'Foreign Tunes? Gender and Nationality in Four Countries' Reception of The
Piano', in Harriet Margolis, Jane Campion's The Piano (Cambridge: Cambridge University Press,
2000) pp. 135-162	
  
De Breun, Anne., 'Building the film industry in New Zealand: an entrepreneurship continuum', in	
  
Colette Henry, Entrepreneurship in the Creative Industries: An International Perspective
(Gloucestershire: Edward Elgar Publishing Limited, 2007) pp. 87-106	
  
DiMare, Philip C., Movies in American History: An Encyclopedia, Volume 1 (California: ABC-
CLIO, 2011)	
  
Dunleavy, Trisha and Joyce Hester, New Zealand Film and Television: Institution, Industry and
Cultural Change (Bristol: Intellect, 2011)	
  
Goldsmith, Ben and Geoff Lealand, Directory of World Cinema: Australia and New Zealand
(Bristol: Intellect, 2010)	
  
Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', New Zealand National
Party Website, (2010) https://www.national.org.nz/news/news/media-
releases/detail/2010/01/24/avatar-delivers-$307m-to-new-zealand-economy	
  [accessed	
  December	
  
2014]	
  
Hjort, Mette and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press,
2007)	
  
Jacka, Elizabeth., 'Australian cinema', in John Hill and Pamela Church Gibson, World Cinema
Critical Approaches (Oxford: Oxford University Press, 2000) pp. 132-138 	
  
Leotta, Alfio, Touring the screen: tourism and New Zealand film geographies (Bristol: Intellect,
2011)	
  
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Mayer, Geoff and Keith Beattie, The Cinema of Australia and New Zealand (London: Wallflower
Press, 2007)	
  
Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)',
Ministry for Culture & Heritage Website, (2012)
http://www.mch.govt.nz/files/SPIF%20Evaluation%20Aug%202012%20(D-0493691).PDF	
  
[accessed	
  December	
  2014]	
  
Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen
Production Grant 2004-2011', Ministry of Business, Innovation & Employment Website, (2012)
http://www.med.govt.nz/sectors-industries/screen-industry/pdf-docs-library/Evaluation-of-the-
Large-Budget-Screen-Production-Grant-2004-2011.pdf	
  [accessed	
  December	
  2014]	
  
Ministry of Economic Development, 'Discussion Paper Growth and Dynamics of the New Zealand
Screen Industry', Ministry of Business, Innovation & Employment Website, (2012) 	
  
http://www.med.govt.nz/about-us/publications/publications-by-topic/evaluation-of-government-
programmes/Economic%20study%20of%20the%20NZ%20film%20industry.pdf	
  [accessed	
  
December	
  2014]	
  
Ministry of Economic Development, 'Large Budget Screen Production Grant Overview', Ministry
of Business, Innovation & Employment Website, (2009) http://www.med.govt.nz/sectors-
industries/screen-industry/pdf-docs-library/large-budget-screen-production-grant-2009.pdf	
  
[accessed	
  December	
  2014]	
  
New Zealand Equity and the Media, Entertainment & Arts Alliance, 'NZ Government Review of
the New Zealand Film Commission', Media, entertainment & arts alliance Website, (2009)
http://www.alliance.org.au/award-summaries/view-document/414-new-zealand-film-commission-
review [accessed December 2014]	
  
New Zealand Film Commission, 'Annual Report 2010-2011', New Zealand Film Commission
Website, (2011) http://www.nzfilm.co.nz/sites/nzfc/files/NZFC%20Annual%20Report%202010-
11.pdf	
  [accessed	
  December	
  2014]	
  
New Zealand Film Commission, 'Key Facts', New Zealand Film Commission Website, (2014)
http://www.nzfilm.co.nz/about-us/key-facts	
  [Accessed	
  December	
  2014]	
  
New Zealand Film Commission, 'New Zealand Screen Production Grant Comes Into Effect', New
Zealand Film Commission Website, (2014) http://www.nzfilm.co.nz/news/new-zealand-screen-
production-grant-comes-into-effect	
  [accessed	
  December	
  2014]	
  
New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', New Zealand
Page	
  16	
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  Number:	
  27488276	
  
Film Commission Website, (2013)
http://www.nzfilm.co.nz/sites/nzfc/files/Screen%20Production%20Incentive%20Fund%20Criteria
%20October%202013%20FINAL_0.pdf	
  [accessed December 2014]	
  
New Zealand Legislation, 'New Zealand Film Commission Act 1978', New Zealand Legislation
Website, (1978)
http://www.legislation.govt.nz/act/public/1978/0061/latest/whole.html#DLM23015	
  [accessed	
  
December	
  2014]	
  
Nick Goundry, 'New Zealand Screen Production Grant comes into effect to boost location filming',
The Location Guide Website, (2014) http://www.thelocationguide.com/blog/2014/04/ng-filming-
incentives-new-zealand-screen-production-grant-comes-into-effect-to-boost-location-filming/	
  
[accessed	
  December	
  2014]	
  
Paul Stanley Ward, 'Once Were Warriors', NZ on Screen, (2008)
http://www.nzonscreen.com/title/once-were-warriors-1994/background	
  [accessed	
  December	
  
2014	
  
Petrie, Duncan., 'New Zealand', in Mette Hjort and Duncan Petrie, The Cinema of Small Nations
(Indiana: Indiana University Press, 2007) pp. 160-176 	
  
Ruth Harley, 'Cultural Capital and the Knowledge Economy', paper delivered to the Public Service
Senior Management Conference, (1999) http://pssm.ssc.govt.nz	
  [accessed	
  December	
  2014]	
  
Schatz, Thomas., 'Movies and a Hollywood Too Big to Fail', in Timothy Corrigan, American
Cinema of the 2000s: Themes and Variations (New Jersey: Rutgers University Press, 2012) pp.
194-215 	
  
Schweninger, Lee, Imagic moments: indigenous North American film (Georgia: University of
Georgia Press, 2013)	
  
Screen Industry Survey, 'Screen Industry Survey: 2004/05 - Hot Off the Press', Statistics New
Zealand Website, (2006)
http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ScreenIndustrySurvey/previou
s-releases/screen-industry-survey-04-05-hotp.pdf	
  	
  [accessed	
  December	
  2014]	
  
Screen Industry Survey, 'Screen Industry Survey: 2011/12 - Hot Off the Press', Statistics New
Zealand Website, (2013)
http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ScreenIndustrySurvey/HOTP1
1-12/ScreenIndustrySurvey11-12HOTP.pdf	
  [accessed	
  December	
  2014]	
  
Tourism New Zealand, '100% Middle Earth', Tourism New Zealand Website, (2013)
Page	
  17	
   Student	
  Number:	
  27488276	
  
http://www.tourismnewzealand.com/sector-marketing/film-tourism/100percent-middle-earth/	
  
[accessed	
  December	
  2014]	
  
Williams, Thomas, Following Prince Caspian: Further Encounters with the Lion of Narnia
(Nashville: Thomas Nelson, 2008) 	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Page	
  18	
   Student	
  Number:	
  27488276	
  
Filmography:	
  
Avatar. Directed by James Cameron. Twentieth Century Fox Film Corporation. USA. 2009	
  
Boy. Directed by Taika Waititi. Whenua Films. New Zealand. 2010 	
  
Heavenly Creatures. Directed by Peter Jackson. WingNut Films. New Zealand. 1994	
  
King Kong. Directed by Peter Jackson. Universal Pictures. USA. 2005	
  
Love Birds. Directed by Paul Murphy. General Film Corporation. New Zealand. 2011	
  
Mataraki. Directed by Michael Bennett. Filmwork. New Zealand. 2010	
  
Once Were Warriors. Directed by Lee Tamahori. New Zealand Film Commission. New Zealand.
1994	
  
The Chronicles of Narnia: The Lion, the Witch and the Wardrobe. Directed by Andrew Adamson.
Walt Disney Pictures. USA. 2005	
  
The Chronicles of Narnia: Prince Caspian. Directed by Andrew Adamson. Walt Disney Pictures.
USA. 2008	
  
The Lord of the Rings: The Fellowship of the Ring. Directed by Peter Jackson. New Line Cinema.
New Zealand. 2001	
  
The Lord of the Rings: The Return of the King. Directed by Peter Jackson. New Line Cinema. New
Zealand. 2003 	
  
The Lord of the Rings: The Two Towers. Directed by Peter Jackson. New Line Cinema. New
Zealand. 2002	
  
The Piano. Directed by Jane Campion. Australian Film Commission. New Zealand. 1993 	
  
	
  
	
  
	
  
	
  

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Film Policy Essay

  • 1. Page  1   Student  Number:  27488276   Should we call you New Zealand or Middle Earth?     'Film creates culture, builds identity and markets that identity to the world. Film tells potent New Zealand stories. Those stories and the voices, characters and landscapes which constitute them give expression to our identity. They create culture'1     'The outstanding financial and critical success of Jackson's Lord of the Rings (2001-2003) has, it would seem, silenced the demands of cultural nationalists for New Zealand content and an indigenous identity on screen'2     4.5 million people populate New Zealand's 270,000 km2 body of land, they are located approximately 11,000 km from Hollywood, the world centre of large-budget film production. Similar to other small countries, New Zealand's national film industry faces the struggle of attaining either financial success, cultural relevance or both. The quotes above demonstrate this divide that exists between creating a cinema representative of New Zealand's culture and one capable of making sizeable financial returns. Writing on the nearest national cinema and comparable in several respects, Elizabeth Jacka comments that the Australian film industry: '… is not metropolitan enough to be in the international mainstream of either intellectual or artistic life, and not marginal enough to be exotic'3. Considering this dilemma, in this essay I will investigate how the financial and critical success of The Lord of the Rings trilogy4 can be seen to have affected two separate New Zealand film funding initiatives and their directed support to either commercial or cultural film production. In what follows I will analyse the Large Budget Screen Production Grant (LBSPG) and the Screen Production Incentive Fund (SPIF). Through consideration of government reviews and evaluations of these initiatives I will assess the effectiveness of the schemes based on their original objectives. Further to this I will also review comments from critics 1 Ruth Harley, 'Cultural Capital and the Knowledge Economy', (1999)   2 Mayer, Geoff and Keith Beattie, The Cinema of Australia and New Zealand (London: Wallflower Press, 2007), p. 8-9   3 Jacka, Elizabeth., 'Australian cinema', in John Hill and Pamela Church Gibson, World Cinema Critical Approaches (Oxford: Oxford University Press, 2000) pp. 132   4 The Lord of the Rings trilogy, directed by Peter Jackson (New Line Cinema: New Zealand, 2001-2003)  
  • 2. Page  2   Student  Number:  27488276   such as Trisha Dunleavy and Joyce Hester5, who address the significance of New Zealand film and television as important cultural and creative industries.   New Zealand is not a nation new to film, screening of motion pictures started in 1896 and they shot their first film in the country two years later. The industry was small-scale with national directors creating New Zealand themed feature films and until 1978, opportunities for filmmakers were scarce. The New Zealand Film Commission (NZFC) was established by the government that year with the primary functions: '(a) to encourage and also to participate and assist in the making, promotion, distribution, and exhibition of films: (b) to encourage and promote cohesion within the New Zealand film industry'6. As such the administration of the LBSPG and the SPIF were part of their remit when introduced by the government. As a marker of the NZFC's importance in promoting accessible film production, their website boasts that in the 36 years since they were established, more than 300 feature films have been made in New Zealand7. The vast majority of these received funding support from the commission or the government grants they administer, comparatively, the preceding 30 years saw fewer than 20 feature films made in the country8. As these figures show, the intervention of the state in matters of film production proved essential in developing the sector. In their book investigating the cinema of small nations, Mette Hjort and Duncan Petrie9 explore the difficulties faced by small national cinemas in the face of a dominant production force such as Hollywood. Duncan Petrie discusses the role governments previously performed and continue to play currently, suggesting that: 'While historically state intervention in film production had been a protective response to Hollywood domination, the new global economy has created the situation in which governments can actively assist transnational corporations while simultaneously serving the national interest'10. Two films in the 1990's particularly typify this state 5 Dunleavy, Trisha and Joyce Hester, New Zealand Film and Television: Institution, Industry and Cultural Change (Bristol: Intellect, 2011)   6 New Zealand Legislation, 'New Zealand Film Commission Act 1978', (1978)   7 New Zealand Film Commission, 'Key Facts', (2014)   8 New Zealand Film Commission, 'Key Facts', (2014)   9 Hjort, Mette and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press, 2007)   10 Petrie, Duncan., 'New Zealand', in Mette Hjort and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press, 2007) p. 161  
  • 3. Page  3   Student  Number:  27488276   aided situation of assisting commercial gains whilst representing the nation. Heavenly Creatures11 was based on a notorious true story from New Zealand's history, and Once Were Warriors12 is an affecting portrayal of Maori adaptation to urban life. Both films were funded by the NZFC and went on to profit at the international box office with Once Were Warriors accumulating $25 million13.   The NZFC is not the only promoter of New Zealand film production, assistance has also taken the form of international financing and co-productions, caution must be taken with regards to their financial motivations though. One such example of this arrangement is highlighted by The Piano14 which received majority French funding, the global success of the film far surpassed the previous examples mentioned. According to its producer Jan Chapman, almost a year after its release, it had earned $116,695,94715. This can be seen as the result from characteristics of what Ben Goldsmith, Susan Ward and Tom O'Regan term a 'Local Hollywood'16. Their book charts the forces and innovations that occurred to move production from outside the borders of California, they describe 'Local Hollywood's' as locations with advantageous attributes to film production such as people, place; providers, financing; story settings and locations17. These significant centres of film production are a marker of the globalisation of Hollywood and whilst they provide the best platform for film production, it is ideal for the Hollywood model favouring financial success over any accurate national representation. For New Zealand there is one film series that exemplifies this, The Lord of the Rings (TLOTR) trilogy, which unadjusted for inflation, took a worldwide gross of $2,911,400,00018. After this large-scale economic success, favourable conditions in New Zealand were created and capitalised upon by other sectors such as tourism and special effects companies. 11 Heavenly Creatures, directed by Peter Jackson (WingNut Films: New Zealand, 1994)   12 Once Were Warriors, directed by Lee Tamahori (New Zealand Film Commission: New Zealand, 1994)   13 Paul Stanley Ward, 'Once Were Warriors', (2008)   14 The Piano, directed by Jane Campion (Australian Film Commission: New Zealand, 1993)   15 Crofts, Stephen., 'Foreign Tunes? Gender and Nationality in Four Countries' Reception of The Piano', in Harriet Margolis, Jane Campion's The Piano (Cambridge: Cambridge University Press, 2000) p. 135   16 Ben Goldsmith, Susan Ward and Tom O'Regan, Local Hollywood Global Film Production and the Gold Coast (Queensland: University of Queensland Press, 2010) p. 4   17 Ben Goldsmith, Susan Ward and Tom O'Regan, p. 4-11   18 Box Office Mojo, 'The Lord of the Rings', (2014)  
  • 4. Page  4   Student  Number:  27488276   Tourism New Zealand (TNZ) continues to market the country as Middle Earth with a recent campaign titled: '100% Middle Earth, 100% Pure New Zealand'19. The issue faced from all this success is the inaccurate representation of New Zealand that is not only created on screen, but also then absorbed and distributed in other forms. Forgotten are the stories of Maoris and other real-life New Zealanders and it is in this climate that the government introduced the LBSPG. This scheme would seem to compound the problem of cultural representation in film by focusing on incentivising the production of large budget productions.   Launched in 2004, the Large Budget Screen Production Grant (LBSPG) had the primary aim of increasing: '… economic growth by providing a financial incentive to attract large scale screen production to New Zealand, which would be unlikely to come in the absence of such incentives'20. As detailed in the Ministry of Business, Innovation & Employment's evaluation of the LBSPG from 2004 until 2011: The financial incentive offered was originally a 12.5% rebate on Qualifying New Zealand Production Expenditure (QNZPE), where the New Zealand expenditure was NZ$15 million or more21. Dunleavy and Hester note that New Zealand companies were eligible to apply for the LBSPG but the large sums of investment capital required tended to exclude them22. The previously mentioned New Zealand films from the 1990's had a combined budget of less than the eligible amount required to receive any LBSPG rebate, as such it can be seen that productions like TLOTR, with an estimated budget of almost $297 million23 were the intended recipients. The effectiveness of the grant in commercial terms, and the appeal to producers of large budget productions has been well recorded. In a discussion paper examining the growth and dynamics of the New Zealand Screen Industry, the Ministry of Economic Development quote figures showing that between the years 2005 and 2011, direct economic impact of the production and post- production sector has increased its contribution to Gross Domestic Product (GDP) from 0.25% to 0.47%24. Referring to Table 1, producers of films qualifying for LBSPG were asked to select the 19 Tourism New Zealand, '100% Middle Earth', (2013)   20 Ministry of Economic Development, 'Large Budget Screen Production Grant Overview', (2009) p. 2   21 Ministry of Business, Innovation & Employment, (2012) p. 20   22 Dunleavy, Trisha and Joyce Hester, p. 223   23 DiMare, Philip C., Movies in American History: An Encyclopedia, Volume 1(California: ABC-CLIO, 2011) p. 309   24 Ministry of Economic Development, 'Discussion Paper Growth and Dynamics of the New Zealand Screen Industry', (2012) p. 6  
  • 5. Page  5   Student  Number:  27488276   influence the initiative had on their decision to film in New Zealand. It reveals that of the 35 qualifying films, 30 rated the LBSPG as at least very important, with those productions accounting for 90% of the total QNZPE spent.     Influence of LBSPG   Extremely Important 70-90%   Very Important 50-70%   Important 30-50%   Partly Important 10-30%   Not Important 0%   Number of Productions   9   21   -   2   3   Total QNZPE (NZ$M)   $731.9   $1,011.3   -   $98.6   $95.3   Average QNZPE (NZ$M)   $81.3   $48.2   -   $49.3   $31.8   Table 1: Influence of LBSPG25   The influence of TLOTR and the state desire for economic improvement can be seen again three years into the scheme when adjustments were made which increased the grant to 15% of QNZPE and even more revealingly, allowed for the bundling of productions. Bundling applies to two or more screen productions, where each production spends a minimum QNZPE of NZ$3 million or more and together they are combined to achieve a total QNZPE of NZ$30 million or more26. The first two Chronicles of Narnia2728 film adaptations narrowly missed out on the opportunity of bundling. Fortunately for the financiers, they qualified for individual grant support with their estimated total budgets of $150 million29 and $225 million30 respectively. Unfortunately for the 25 Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen Production Grant 2004- 2011', (2012) p. 55   26 Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen Production Grant 2004- 2011', (2012) p. 86   27 The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, directed by Andrew Adamson (Walt Disney Pictures: USA, 2005)   28 The Chronicles of Narnia: Prince Caspian, directed by Andrew Adamson (Walt Disney Pictures: USA, 2008)   29 Williams, Thomas, Following Prince Caspian: Further Encounters with the Lion of Narnia (Nashville: Thomas Nelson, 2008) p. 60
  • 6. Page  6   Student  Number:  27488276   representation of New Zealand as a culture, it was yet again promoted as a land of fantasy.   The financial value of purchasing the filmic representation of New Zealand is very desirable for a government wishing to foster an environment bringing economic improvement on the scale of TLOTR. With King Kong31 and Avatar32 that figure was $389 million33 and $307 million34 respectively. This amount is the QNZPE and as a result a generous grant of $48.6 million35 and $44.69 million36 was provided. The majority most likely returning to the American producers Universal Pictures and Twentieth Century Fox for their original investment. The aims, criteria and financial alterations to the LBSPG are revealing of their economic focus. The proof of the schemes appeal for producers though is validated at the box office where Avatar took an estimated $2,787,965,08737 worldwide. This revenue is impressive but reflective of the success made by production companies, in these instances American, not the direct impact upon New Zealand. However, an informative insight is offered through analysis of government statistics for the screen industry between 2005, one year after its inception, and 2012, nearing a decade of continuing support. Gross revenue for the production and post-production sector increased from $NZ 1,294 million38 to $NZ 1.67 million39 with the USA remaining the largest international financier with contributions exceeding $500 million4041. Importantly, feature film and short film   30 Schatz, Thomas., 'Movies and a Hollywood Too Big to Fail', in Timothy Corrigan, American Cinema of the 2000s: Themes and Variations (New Jersey: Rutgers University Press, 2012) p. 207   31 King Kong, directed by Peter Jackson (Universal Pictures: USA, 2005)   32 Avatar, directed by James Cameron (Twentieth Century Fox Film Corporation: USA, 2009)   33 Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)   34 Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)   35 Petrie, Duncan., p. 168   36 Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', (2010)   37 Box Office Mojo, 'Avatar', (2014)   38 Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 3   39 Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 2   40 Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 3   41 Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 3  
  • 7. Page  7   Student  Number:  27488276   made a combined $699 million in 200542, with feature film alone then making an impressive $1.04 billion in 201243. These figures attest to the LBSPG's commercial success and confirm Petrie's examinations regarding the ability for governments to serve the national interest whilst assisting transnational corporations. As mentioned, the problem of this initiative is the lack of focus toward cultural depiction, so obvious is the government intention for this scheme that it is not surprising for Dunleavy and Hester to note its creation required additional working partnerships between the NZFC and the government. This resulted in the inclusion of representatives from the Ministry of Economic Development on the first board44, blurring the lines between direct and indirect state involvement. Here the cultural representation charged to the NZFC appears to be ignored and the country loses its national identity through film. Reviewing the NZFC's ability to orchestrate the LBSPG, New Zealand Equity suggested the scheme: '… should be administered by the Ministry of Culture and Heritage rather than the NZFC' as, '… the NZFC should focus on its cultural remit ... i.e supporting those productions that have significant NZ cultural content'45.   To remedy the situation, in 2009, the NZFC were again entrusted to administer a new grant scheme introduced by the government. The Screen Production Incentive Fund (SPIF) can be seen as a cultural antidote for film production that had become too commercially focused. Dunleavy and Hester note the importance of the New Zealand film industry as a significant site for cultural influence, where films are the primary vehicle for progressing cultural objectives46. However and unfortunately for audiences, they note that New Zealand films: '... have remained a minority element of the total viewing experience of New Zealanders', due to the '... ready availability and contrasting abundance of imported examples'47. The intentions of the SPIF can be seen to reflect this importance as the main objectives are to: 'Support increased production of medium and larger scale New Zealand cultural screen content, for the benefit of audiences; support the retention of New Zealand screen talent, stories and infrastructure'48. Unlike the LBSPG, the SPIF requires a 42 Screen Industry Survey, 'Screen Industry Survey: 2004/05 – Hot Off the Press', (2006) p. 1   43 Screen Industry Survey, 'Screen Industry Survey: 2011/12 – Hot Off the Press', (2013) p. 2   44 Dunleavy, Trisha and Joyce Hester, p. 223   45 New Zealand Equity and the Media, Entertainment & Arts Alliance, 'NZ Government Review of the New Zealand Film Commission', (2009) p. 5   46 Dunleavy, Trisha and Joyce Hester, p. 17   47 Dunleavy, Trisha and Joyce Hester, p. 24   48 Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 7
  • 8. Page  8   Student  Number:  27488276   film production to have significant New Zealand content in order to qualify, the guidance framework can be seen in table 2:     Significant New Zealand Content Areas   Points Available   A - New Zealand Subject Matter     A1 - Setting   3 (0 - 3)   A2 - Lead Characters   3 (0 - 3)   A3 - Creative Material   3 (0 - 3)   A4 - Contribution to New Zealand Culture/History   2 (0 - 2)   Total - Section A (minimum: 3 for feature film, 2 for other formats)   11   B - New Zealand Production Activity     B1 - Shooting - Location/Studio   2 (0 - 2)   B2 - Visual Post-Production, Digital or Visual Effects, Research and Development   2 (0 - 2)   B3 - Music Recording, Voice Recording, Audio Post-Production   1   Total - Section B   5   C - New Zealand Film-Makers     C1 - Director   2 (0 - 2)   C2 - Producer   2 (0 or 2)   C3 - Scriptwriter   2 (0 - 2)   C4 - Music Composer/Source Music   1   C5 - Lead Actors   2 (0 - 2)   C6 - Majority of Cast   1   C7 - Key Production Staff - DOP, Editor, Designer, Effects Supervisor   2 (0 - 2)   C8 - Majority of Crew   1   Total - Section C (minimum 3pts from C1 - C3)   13   D - Other Relevant Matters     D1 - Ownership of Copyright   1   D2 - Any other relevant matters - business development outcomes   1   Total - Section D   2   Total - minimum 20 (feature film) or 15 (other screen formats)   __ (out of 31)   Table 2: SPIF Assessment of 'Significant New Zealand Content' Guidance - Points Framework49     49 New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', (2013) p. 29  
  • 9. Page  9   Student  Number:  27488276   It is interesting to note that a minimum amount of points need to be achieved in regards to the sections on New Zealand subject matter and New Zealand film-makers including cast and crew. Yet there is no minimum for pre-production and post-production or any actual location/studio shooting in the country. Whereas the requirement to qualify for the LBSPG was to spend as much in the country regardless of cultural representation, as was the apparent desire to exploit the landscapes of the country as those of fantasy worlds. Here the precondition is that cultural representation and the support of the New Zealand production talent and its infrastructure is achieved, there is no actual requirement to portray the country itself. Once a production has reached the required 20 points, spent a minimum of $2.5 million and maximum of $15 million in QNZPE, it is able to receive a grant of 40% of the total QNZPE it has spent50. Table 3 contains revealing statistics for the importance of the SPIF to producers:       Pre-SPIF   (2006/7-2007/8)   Post-SPIF   (2008/9-2010/11)   Total NZ Spend     $19.2 ml   $56.4 ml   Producer's Intentions Without SPIF   Would Have Relocated Offshore 1/12   Might Have Relocated Offshore 2/12   No Change 9/12   Table 3: Pre and Post SPIF Feature Film Comparisons - New Zealand Spend, Importance of SPIF to Budgets and to Producers51       75% of producers were not influenced by the SPIF in their decision to shoot their productions partly or wholly in New Zealand; only one of the twelve based their decision to film in the country on the fund. This could be interpreted that their desire to represent the national culture and use New Zealand filmmaking talent was more important to them than financial gain.   Written and directed by a New Zealander; produced by a New Zealander, starring New Zealand actors as Maori's; scored by a New Zealand band, set and shot in New Zealand, the list 50 New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', (2013) pp. 3-5   51 Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 16  
  • 10. Page  10   Student  Number:  27488276   goes on for just how 'New Zealand' Boy52 is. It was a recipient of the SPIF, nominated for thirteen awards at the 2010 Qantas Film and Television Awards, and set the record for the highest grossing New Zealand film at the domestic box office53. It proved to be a film both culturally and commercially successful, validating the creation of the SPIF. Further proof of its success, and importance to cultural representation can be concluded from tables 3 & 4.       Pre-SPIF   (2006/7-2007/8)   Post-SPIF   (2008/9-2010/11)   No. of films > $4 ml budget   4   9   Average budget     $9.5 ml ($5.6 - $16.6 ml)   $7.5 ml ($4.5 - $10.7ml)   Av. box office receipts     $0.3 ml ($0.2 - $0.5 ml)   $1.2 ml ($0.1 - $8.3 ml)   Table 4: Pre and Post-SPIF Feature Film Comparisons - Number, Budget Size and Box Office Receipts54       They reveal that total New Zealand spend on comparable feature films almost tripled between the pre-SPIF and post-SPIF years showing economic improvement. The number of films with budgets smaller that $4 million more than doubled and the average budget decreased by 21%, suggesting that film production is more achievable and infrastructure might have been enhanced. Further to this, it conclusively means that more culturally significant films have been made, as those that fall into this budget category would have all had to pass the cultural content test to receive the SPIF. Finally, but just as revealing of the SPIF's success in achieving its objectives, the 400% higher average box office shows that more people are seeing these films. However, this final figure is not wholly representative, it would be much lower without the inclusion of Boy as its box office success far surpassed any of the others. Table 5 shows the QNZPE; awarded SPIF and NZ box office receipts for some of the SPIF funded films.   52 Boy, directed by Taika Waititi (Whenua Films: New Zealand, 2010)   53 New Zealand Film Commission, 'Annual Report 2010-2011', (2011) p. 16   54 Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 14  
  • 11. Page  11   Student  Number:  27488276   Name of Production   Format   QNZPE   $   SPIF   $   NZ Box Office Receipts - $   Total Govt Contribution To Budget - %   2008/09             2009/10             Under the Mountain   Feature film   9,983,803   3,993,521   246,577     Separation City   Feature film   5,114,599   2,045,840   498,411     Emilie Richards - Tales of the South Pacific   TV series   3,700,886   740,177       Mataraki   Feature film   4,207,582   1,683,033   15,490     Boy   Feature film   5,167,563   2,067,025   8,286,389     Total 2009/10     28,174,433   10,529,596       2010/11             Bite Me   TV series   2,251,471   450,424       Predicament   Feature film   6,011,059   2,404,424   138,255     Tracker   Feature film   6,382,988   2,553,195   57,170     Hopes & Dreams   Feature film   4,708,953   1,883,581   59,979     Love Birds   Feature film   8,583,089   3,433,236   511,359     Emilie Richards - Tales of the South Pacific (Season 2)   TV series   3,700,886   930,882       ICE   Feature film   6,223,344   2,489,338       ICE   TV series   8,296,825   1,659,365       Total 2010/11     46,158,615   15,804,315       Total 2008/9- 2010/11     74,333,048   26,333,911       Average 2008/9- 2010/11         1,226,704   70   Table 5: Details of SPIF Funded Productions55   55 Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', (2012) p. 12
  • 12. Page  12   Student  Number:  27488276   The next nearest financially successful film at the box office to Boy was Love Birds56, which attracted only 6.17% ticket sales in comparison. For commentators arguing economic development of the industry over national representation, Mataraki57 is their proof. In box office receipts it didn't even make 1% of the amount the SPIF awarded it for qualifying expenditure. It must be noted that box office is not the gauge of success though, the scheme is intended to represent New Zealand culture for audiences and support national filmmakers and it has achieved this. Even the commercially unsuccessful funded films like Mataraki have been judged as culturally significant and the increased number of them thanks to the SPIF means more production money is being spent in and on the country. Unfortunately, this economic success is low and the national representation is favourable but not capable of supporting the industry. Avatar spent $307 million in New Zealand expenditure; all the SPIF films combined from the period analysed spent only 24% of that one LBSPG attracted film.   A continual source of money flowing into their country is favoured by all nations of the world. The Lord of the Rings trilogy brought this to New Zealand and the state reacted by incentivising and fostering an environment where it could happen again and again. The LBSPG was a success in this regard and revealed the extent of government involvement in the development of the film industry. Examining entrepreneurship in the creative industries, Colette Henry suggests that: 'The strategic state is a key driver of innovation in the national economy and is seen as a catalyst in the creation of favourable systemic conditions'58. Government intervention was again felt with the SPIF, its creation was not directly influenced by TLOTR but rather from that trilogy's effect on the LBSPG and the cultural failings it had. 2014 saw the state at it again with the introduction of another scheme, the New Zealand Screen Production Grant (NZSPG). Offering a 20% grant for international productions with an additional 5% for those passing a significant economic benefits test, and a 40% grant for New Zealand productions with more flexibility in defining a New Zealand production (2014)59. This should continue to attract large budget   56 Love Birds, directed by Paul Murphy (General Film Corporation: New Zealand, 2011)   57 Mataraki, directed by Michael Bennett (Filmwork: New Zealand, 2010)   58 De Breun, Anne., 'Building the film industry in New Zealand: an entrepreneurship continuum', in Colette Henry, Entrepreneurship in the Creative Industries: An International Perspective (Gloucestershire: Edward Elgar Publishing Limited, 2007) p. 95   59 New Zealand Film Commission, 'New Zealand Screen Production Grant Comes Into Effect', (2014)  
  • 13. Page  13   Student  Number:  27488276   productions whilst increasing those films deemed to have significant contribution to New Zealand's representation. But with the Avatar sequels reportedly considering returning to New Zealand for   production with an estimated spend of $NZ 500 million (2014)60, will this grant crack the cultural and commercial balance?                                                       60 Nick Goundry, 'New Zealand Screen Production Grant comes into effect to boost location filming', (2014)  
  • 14. Page  14   Student  Number:  27488276   Bibliography:   Ben Goldsmith, Susan Ward and Tom O'Regan, Local Hollywood Global Film Production and the Gold Coast (Queensland: University of Queensland Press, 2010)   Bennett, James E and Rebecca Beirne, Making Film and Television Histories: Australia and New Zealand (London: I.B.Tauris & Co Ltd, 2011)   Box Office Mojo, 'Avatar', Box Office Mojo Website, (2014) http://boxofficemojo.com/movies/?id=avatar.htm  [accessed  December  2014]   Box Office Mojo, 'The Lord of the Rings', Box Office Mojo Website, (2014) http://www.boxofficemojo.com/franchises/chart/?id=lordoftherings.htm  [accessed  December   2014]   Crofts, Stephen., 'Foreign Tunes? Gender and Nationality in Four Countries' Reception of The Piano', in Harriet Margolis, Jane Campion's The Piano (Cambridge: Cambridge University Press, 2000) pp. 135-162   De Breun, Anne., 'Building the film industry in New Zealand: an entrepreneurship continuum', in   Colette Henry, Entrepreneurship in the Creative Industries: An International Perspective (Gloucestershire: Edward Elgar Publishing Limited, 2007) pp. 87-106   DiMare, Philip C., Movies in American History: An Encyclopedia, Volume 1 (California: ABC- CLIO, 2011)   Dunleavy, Trisha and Joyce Hester, New Zealand Film and Television: Institution, Industry and Cultural Change (Bristol: Intellect, 2011)   Goldsmith, Ben and Geoff Lealand, Directory of World Cinema: Australia and New Zealand (Bristol: Intellect, 2010)   Hon Gerry Brownlee, 'Avatar delivers $307M to New Zealand economy', New Zealand National Party Website, (2010) https://www.national.org.nz/news/news/media- releases/detail/2010/01/24/avatar-delivers-$307m-to-new-zealand-economy  [accessed  December   2014]   Hjort, Mette and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press, 2007)   Jacka, Elizabeth., 'Australian cinema', in John Hill and Pamela Church Gibson, World Cinema Critical Approaches (Oxford: Oxford University Press, 2000) pp. 132-138   Leotta, Alfio, Touring the screen: tourism and New Zealand film geographies (Bristol: Intellect, 2011)  
  • 15. Page  15   Student  Number:  27488276   Mayer, Geoff and Keith Beattie, The Cinema of Australia and New Zealand (London: Wallflower Press, 2007)   Ministry for Culture and Heritage, 'Review Report: Screen Production Incentive Fund (SPIF)', Ministry for Culture & Heritage Website, (2012) http://www.mch.govt.nz/files/SPIF%20Evaluation%20Aug%202012%20(D-0493691).PDF   [accessed  December  2014]   Ministry of Business, Innovation & Employment, 'Evaluation of the Large Budget Screen Production Grant 2004-2011', Ministry of Business, Innovation & Employment Website, (2012) http://www.med.govt.nz/sectors-industries/screen-industry/pdf-docs-library/Evaluation-of-the- Large-Budget-Screen-Production-Grant-2004-2011.pdf  [accessed  December  2014]   Ministry of Economic Development, 'Discussion Paper Growth and Dynamics of the New Zealand Screen Industry', Ministry of Business, Innovation & Employment Website, (2012)   http://www.med.govt.nz/about-us/publications/publications-by-topic/evaluation-of-government- programmes/Economic%20study%20of%20the%20NZ%20film%20industry.pdf  [accessed   December  2014]   Ministry of Economic Development, 'Large Budget Screen Production Grant Overview', Ministry of Business, Innovation & Employment Website, (2009) http://www.med.govt.nz/sectors- industries/screen-industry/pdf-docs-library/large-budget-screen-production-grant-2009.pdf   [accessed  December  2014]   New Zealand Equity and the Media, Entertainment & Arts Alliance, 'NZ Government Review of the New Zealand Film Commission', Media, entertainment & arts alliance Website, (2009) http://www.alliance.org.au/award-summaries/view-document/414-new-zealand-film-commission- review [accessed December 2014]   New Zealand Film Commission, 'Annual Report 2010-2011', New Zealand Film Commission Website, (2011) http://www.nzfilm.co.nz/sites/nzfc/files/NZFC%20Annual%20Report%202010- 11.pdf  [accessed  December  2014]   New Zealand Film Commission, 'Key Facts', New Zealand Film Commission Website, (2014) http://www.nzfilm.co.nz/about-us/key-facts  [Accessed  December  2014]   New Zealand Film Commission, 'New Zealand Screen Production Grant Comes Into Effect', New Zealand Film Commission Website, (2014) http://www.nzfilm.co.nz/news/new-zealand-screen- production-grant-comes-into-effect  [accessed  December  2014]   New Zealand Film Commission, 'New Zealand Screen Production Incentive Fund', New Zealand
  • 16. Page  16   Student  Number:  27488276   Film Commission Website, (2013) http://www.nzfilm.co.nz/sites/nzfc/files/Screen%20Production%20Incentive%20Fund%20Criteria %20October%202013%20FINAL_0.pdf  [accessed December 2014]   New Zealand Legislation, 'New Zealand Film Commission Act 1978', New Zealand Legislation Website, (1978) http://www.legislation.govt.nz/act/public/1978/0061/latest/whole.html#DLM23015  [accessed   December  2014]   Nick Goundry, 'New Zealand Screen Production Grant comes into effect to boost location filming', The Location Guide Website, (2014) http://www.thelocationguide.com/blog/2014/04/ng-filming- incentives-new-zealand-screen-production-grant-comes-into-effect-to-boost-location-filming/   [accessed  December  2014]   Paul Stanley Ward, 'Once Were Warriors', NZ on Screen, (2008) http://www.nzonscreen.com/title/once-were-warriors-1994/background  [accessed  December   2014   Petrie, Duncan., 'New Zealand', in Mette Hjort and Duncan Petrie, The Cinema of Small Nations (Indiana: Indiana University Press, 2007) pp. 160-176   Ruth Harley, 'Cultural Capital and the Knowledge Economy', paper delivered to the Public Service Senior Management Conference, (1999) http://pssm.ssc.govt.nz  [accessed  December  2014]   Schatz, Thomas., 'Movies and a Hollywood Too Big to Fail', in Timothy Corrigan, American Cinema of the 2000s: Themes and Variations (New Jersey: Rutgers University Press, 2012) pp. 194-215   Schweninger, Lee, Imagic moments: indigenous North American film (Georgia: University of Georgia Press, 2013)   Screen Industry Survey, 'Screen Industry Survey: 2004/05 - Hot Off the Press', Statistics New Zealand Website, (2006) http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ScreenIndustrySurvey/previou s-releases/screen-industry-survey-04-05-hotp.pdf    [accessed  December  2014]   Screen Industry Survey, 'Screen Industry Survey: 2011/12 - Hot Off the Press', Statistics New Zealand Website, (2013) http://www.stats.govt.nz/~/media/Statistics/Browse%20for%20stats/ScreenIndustrySurvey/HOTP1 1-12/ScreenIndustrySurvey11-12HOTP.pdf  [accessed  December  2014]   Tourism New Zealand, '100% Middle Earth', Tourism New Zealand Website, (2013)
  • 17. Page  17   Student  Number:  27488276   http://www.tourismnewzealand.com/sector-marketing/film-tourism/100percent-middle-earth/   [accessed  December  2014]   Williams, Thomas, Following Prince Caspian: Further Encounters with the Lion of Narnia (Nashville: Thomas Nelson, 2008)                                                          
  • 18. Page  18   Student  Number:  27488276   Filmography:   Avatar. Directed by James Cameron. Twentieth Century Fox Film Corporation. USA. 2009   Boy. Directed by Taika Waititi. Whenua Films. New Zealand. 2010   Heavenly Creatures. Directed by Peter Jackson. WingNut Films. New Zealand. 1994   King Kong. Directed by Peter Jackson. Universal Pictures. USA. 2005   Love Birds. Directed by Paul Murphy. General Film Corporation. New Zealand. 2011   Mataraki. Directed by Michael Bennett. Filmwork. New Zealand. 2010   Once Were Warriors. Directed by Lee Tamahori. New Zealand Film Commission. New Zealand. 1994   The Chronicles of Narnia: The Lion, the Witch and the Wardrobe. Directed by Andrew Adamson. Walt Disney Pictures. USA. 2005   The Chronicles of Narnia: Prince Caspian. Directed by Andrew Adamson. Walt Disney Pictures. USA. 2008   The Lord of the Rings: The Fellowship of the Ring. Directed by Peter Jackson. New Line Cinema. New Zealand. 2001   The Lord of the Rings: The Return of the King. Directed by Peter Jackson. New Line Cinema. New Zealand. 2003   The Lord of the Rings: The Two Towers. Directed by Peter Jackson. New Line Cinema. New Zealand. 2002   The Piano. Directed by Jane Campion. Australian Film Commission. New Zealand. 1993