NZ, Filmmakers Reach "Hobbit" Agreement

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From Bacon Tastes Good:

Well, it took long enough, but it sounds like the producers of “The Hobbit” and New Zealand labor unions has finally been worked out after the New Zealand government stepped in and assisted in negotiations to bring the $500-million project to the kiwi nation. The two-film project will constitute two prequels to the “Lord of the Rings” trilogy, a worldwide box-office smash.

Actors in New Zealand had called upon their unions to boycott the production to press for a new contract, but it appears the govenment of New Zealand stepped in and negotiated an agreement to keep the lucrative production from moving to Eastern Europe.