HR: NZ's film industry cave in causes FUD

The New Zealand government is rushing into law changes to the way that the film production industry classifies its workers.

The production companies say that their costs are increased because NZ classifies those who, in other countries, would be "independent contractors" as "employees."

Countries try to erode this difference for two reasons: to provide job security for workers and as an anti-avoidance measure for tax purposes.

But the film industry is highly mobile. Viewers really don't know where the background to blue-screen studio shots was filmed - or when. And the producers of Lord of the Rings has many hours of film of locations in and around Christchurch in New Zealand.

Christchurch needs the money and the profile that a new LotR film will bring. Devastated by a series of severe earthquakes that the world has, largely, not noticed, the city is a mix of damaged buildings, condemned buildings and rubble. Businesses are suffering extreme hardship. Families are worried about the state of their homes. The economy is suffering very badly as tourism is not picking up as spring breaks.

But, say film makers, they are in the business of business not in the business of charity and if there is a disincentive to work in a particular place, then there are plenty of other alternatives.

So the NZ government is making a special case for the film industry. That leaves local industries - including the creating industries - at a cost disadvantage as against their foreign competitors, even those operating in NZ.

In addition, NZ is to expand the criteria by which films qualify for subsidies which could be worth up to USD7.5 million per film. The exact amount depends on the success of the film.

The issue, for HR professionals, is how NZ will define workers and to what extent it impacts on H&S and pay.