“Hollywood blockbuster Iron Man 3 took in more than a billion dollars at the box office – but still benefitted from a New Zealand government grant.
Many of the special effects were done by Wellington’s Weta Digital, qualifying the studios for the Post, Digital and Visual Effects Grant.
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ONE News obtained the amount of the grant from the Ministry of Business Innovation and Employment using the Official Information Act.
The figures show the production spent NZ$23.2m in this country.
But while that’s paid into private hands, in exchange, the studios get a cash rebate from the taxpayer of NZ$3.5m (excluding GST) – equating to 15% of the spend.
That’s paid to a shelf company registered here – both directors are linked to Marvel Studios, who made the film in association with Paramount.
It’s been criticised by Council of Trade Unions president Helen Kelly, who said the arrangement doesn’t benefit workers in the film industry.
“The production company gets the benefits, what we want to see is some of the workers getting the benefits through employment security and being treated as employees,” she said.
Weta Digital general manager Tom Greally said the special effects probably wouldn’t have been done here without the grant.
“These productions have a choice, regardless of how successful it is at the box office, and the fact it was successful means they might come back again,” he said.
And Film Commission CEO Dave Gibson says it’s a good deal.
He said the $23 million is new money coming into the country. It’s spent here, so the government gets a percentage of it back through GST and PAYE.
And Gibson says that more than covers the amount paid out in the grant.
Gibson also says the money does trickle down and helps keep film workers in jobs.
“The reality of it is that the screen industry worldwide is now operating on this system of incentives,” Mr Gibson said.
“We also have a very high dollar.”
Weta Digital says around 1500 people work on projects like Iron Man 3, and they all benefit from the grant.”
Source: TVNZ
