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The US mid-term elections have shaken the American political landscape, rattled Donald Trump and his supporters, and rolled the balance of power in the Senate and House of Representatives. Now we await the outcome of our own elections this Saturday.

I recently attended Labour’s The Future of Arts and the Creative Sector event, along with many others from the sector. The discussion featured Reuben Davidson, Labour’s Creative Economy Spokesperson, and Rachel Boyack, its Arts, Culture and Heritage Spokesperson. It provided some useful insights into Labour’s thinking and what we might expect if it forms the next government.

A few key messages emerged.

Labour intends to retain the current Government’s Amplify strategy for Arts, Culture and Heritage, making adjustments rather than replacing it. This suggests there will be no significant increase in arts funding, although there would be a greater emphasis on wellbeing, diversity and inclusion. Labour also intends to maintain a strong focus on the economic contribution of the creative economy, with an ambition to quadruple its output by 2040.

There was also an indication that Labour would proceed with the proposed merger of NZ On Air and the New Zealand Film Commission, with the aim of simplifying the funding system for film, television, digital content and games.

Other priorities include:

  • Simplifying the New Zealand Screen Production Rebate (NZSPR), making it more consistent and easier to navigate.
  • Stopping the planned cuts to the public sector and arts funding.
  • Taking a stronger approach to artificial intelligence, including establishing an Office of AI to provide greater protections while unlocking its potential.

There are some positive signals here. However, one issue remains stubbornly familiar: like successive governments before it, Labour continues to position international production as the primary driver of growth for New Zealand’s screen sector.

This is where I believe a fundamental rethink is needed.

During the discussion, Labour outlined ambitions for Music and Gaming that recognised the importance of developing and growing their domestic industries to increase cultural wellbeing and economic returns. Yet, when it comes to Screen, international production continues to dominate the conversation.

International productions coming to New Zealand are important. They generate economic activity, employment and valuable opportunities for local businesses and practitioners. But they are also inherently dependent on global market conditions, international competition for production incentives and the fluctuating fortunes of offshore studios and streamers. We cannot control these factors, and we cannot build a sustainable industry by relying on them.

Successive governments have placed considerable emphasis on attracting international productions, while the strategic development of our own domestic screen industry has received comparatively little attention.

That needs to change.

New Zealand needs a more balanced and ambitious approach: one that actively grows its domestic screen sector, builds sustainable businesses, creates skilled employment and develops intellectual property capable of generating lasting economic and cultural value.

With the right strategy and investment, our domestic industry has the potential to deliver consistent growth and economic returns that could ultimately rival, and even surpass, those of international production.

This isn’t about choosing between international and domestic production. Both have an important role to play. It is about recognising that one is largely dependent on decisions made elsewhere, while the other is something we can actively shape, develop and grow ourselves.

I’ve written to both Reuben and Rachel following the event to raise this concern.

What we need is clear, long-term strategic direction, targeted investment and an unequivocal commitment to identifying, nurturing and developing local talent. We must create the opportunities, industry pathways and policy settings that enable New Zealand stories, businesses and creative talent to flourish at home and compete successfully on the international stage.

If we manage to shake, rattle and roll the current coalition out of government this coming election, there will be plenty of work ahead. A change of government alone won’t deliver the transformation our sector needs. We also have a responsibility, as an industry, to articulate a compelling vision for our future and make the case for the investment and policies needed to realise it.

The potential of New Zealand’s domestic screen industry is enormous. It’s time our political leaders recognised that, and it’s time we made sure they understood what it will take to unlock it.

 

Tui Ruwhiu
Executive Director

 

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I attended the opening night of Show Me Shorts the other night. As always, there was a lot of joy in the air with the latest batch of New Zealand and international shorts going up on screen, and many of the filmmakers, cast, crew, friends and family there to share the occasion.

All of the shorts incorporated humour in their own distinctive ways, shapes and forms. And in an industry beset by problems, it was a welcome relief to sit back and have a good laugh.

Unfortunately, there is considerably less to laugh about when it comes to the state of our industry.

The single most pressing issue facing DEGANZ and the other screen guilds and associations is the New Zealand Film Commission’s decision to cut core funding following their review around sector cohesion.

There were no clear terms of reference. There was confusion from the outset about what the review was actually intended to examine. And an embargoed media release was issued shortly before the fateful meeting, effectively pre-empting what was meant to be a discussion about sector cohesion.

It felt as though we had been hung, drawn and quartered before the process had properly begun.

Two of the many questions left hanging are simple ones: who actually made this decision, and why?

The answers we have received so far have been nebulous.

More puzzling still is the suggestion that this decision was driven by government concerns, particularly when the country may well have a different government in six weeks’ time.

But there is a more fundamental question here.

What is the NZFC for?

Core funding for guilds and associations has been contentious for as long as I have been in this role. The recurring question is: why should the NZFC support the organisations that represent and strengthen New Zealand’s small screen industry?

That is a perfectly legitimate question.

In fact, it should be asked periodically. Who needs support? Who doesn’t? What work delivers the greatest benefit to the sector? How much funding is appropriate? Are there better ways of delivering particular functions?

None of those questions is unreasonable.

But there is a significant difference between conducting a proper strategic review of those questions and making a funding decision through a process that appeared to lack clarity, transparency and a coherent strategic rationale.

And, importantly, the NZFC’s statutory responsibilities cannot simply be separated from this discussion.

The New Zealand Film Commission Act 1978 requires NZFC to encourage and promote cohesion within the New Zealand film industry. It specifically identifies the exchange of information between industry participants, the efficient use of available resources, and cooperation with other organisations to promote employment and productivity as part of that function. The Act also gives the Commission broad powers to provide financial assistance and other forms of support to the film industry.

That matters.

Because the organisations receiving core funding are not simply a collection of unrelated special-interest groups competing for a slice of the same pie.

The occupational guilds represent the people who perform the roles that make our industry work. The equity organisations represent individuals and communities whose voices and participation have historically been under-represented. Māori organisations have particular responsibilities arising from the Crown’s relationship with Māori and the Treaty of Waitangi. And organisations that deliver professional development have helped build the capability of generations of New Zealand screen practitioners.

These organisations do different things. They represent different constituencies. And, inevitably, they sometimes disagree.

But disagreement is not the same thing as fragmentation.

In fact, the organisations receiving core funding communicate with each other constantly. We work together in smaller groups and, at times, collectively. We share information, support each other’s initiatives and collaborate on issues affecting the wider sector.

Yes, our views sometimes diverge. That is inevitable when you represent different parts of an industry.

But for the most part, we are interdependent—and we behave that way.

Which makes the suggestion that sector cohesion is somehow undermined by the existence of these organisations particularly difficult to understand.

If anything, the opposite is true.

These organisations are part of the connective tissue of the New Zealand screen sector. Some of what we do is highly visible: events, workshops, professional development, networking and other activities. But much of the work is less visible and arguably just as important—advocacy, lobbying, policy development, industrial representation, strategic conversations, information sharing and maintaining relationships across the industry and with government.

It is the sort of work that can be difficult to quantify precisely because its value is cumulative and sector-wide.

So why would we weaken the New Zealand screen industry by threatening the existence of organisations that contribute to its cohesion, capability and representation?

That does not mean guilds and associations should be entitled to core funding indefinitely.

They aren’t.

Core funding should be reviewed from time to time. It is entirely reasonable for the NZFC to ask whether the organisations it supports remain strategically important, whether they are delivering value, whether their roles overlap, and whether public funding is the most effective way to achieve the desired outcomes.

But such a review should have clear strategic intent.

It should be transparent about what is being assessed and why. It should consider the needs of the industry as a whole, rather than simply the cost to support individual organisations. It should recognise the different roles played by different parts of the sector. And it should be tested against the NZFC’s statutory responsibilities—not least its explicit responsibility to encourage and promote cohesion within the New Zealand film industry.

Most importantly, the process should be capable of answering a basic question:

Will this decision make the New Zealand screen industry stronger or weaker?

I am not convinced that question has been adequately asked, let alone answered.

What has happened instead appears to be a funding decision in search of a sufficiently coherent rationale.

And that is the real problem.

The debate about whether core funding should exist is legitimate. The debate about how much organisations should receive is legitimate. The debate about how the sector should organise itself is absolutely legitimate.

But if the result of the process is to weaken the very organisations that represent practitioners, build capability, facilitate collaboration and advocate for the health of the industry, then the NZFC needs to explain how that outcome advances its statutory responsibility to promote cohesion, cooperation and productivity across the New Zealand film industry.

Because right now, the answer isn’t clear.

And so, despite the laughter, the joy and the brilliant work on display at Show Me Shorts the other night, there isn’t much funny about any of this.

For those of us working to build and sustain New Zealand’s screen industry, it’s no laughing matter.

 

Tui Ruwhiu
Executive Director

 

 

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All the American Guilds (DGA, IATSE, WGA, SAG-AFTRA, and The Teamsters), together with the Motion Picture Association of America (made up of the major studios and streamers like Walt Disney Studios, Netflix, Paramount Pictures, Prime Video & Amazon MGM Studios, Sony Pictures, Universal Pictures, and Warner Bros. Discovery), have been lobbying heavily for a US federal screen tax credit.

Hollywood Special Ambassador Jon Voight and his team have been working hard on this, too.

The primary reason for all the effort: to draw runaway screen production back to the US.

And Trump is listening.

Added to this is the announcement from the various state attorneys general greenlighting the Paramount takeover of Warner Bros. Discovery (WBD).

To get this to happen, Paramount has, amongst other conditions, committed to:

    • Investing at least an additional $300 million in film production in the U.S. annually — for a total of $1.5 billion over five years, on top of what they spent in 2025 on filming domestically.
    • Releasing a minimum of 30 films annually for the first two years, increasing to 32 films per year for the subsequent three years.
    • Ensuring at least 20% of film production happens in the US, rising to 30% in the subsequent three years
    • Paying a penalty of US$30 million per missed film if they don’t meet their domestic production thresholds

Neither the federal tax credit nor the Paramount-WBD takeover has actually occurred yet. We all know how easily attitudes change in the White House. And there’s still plenty of opposition to the takeover. Should they happen, however, the volume of runaway production to offshore locations is going to lessen. This is particularly so if the federal tax credit can be stacked on top of state production incentives, as many there hope.

These are just the latest in a long list of threats, real or supposed, to attracting international productions to our shores. What this latest lot do, though, is highlight again the ongoing fragility of the New Zealand screen production industry, exacerbated by the difficulty in financing local production.

So what’s changed?

In the NZ screen industry, not a whole lot. Certainly on the domestic side. Especially in television. The total lack of any real strategic vision for the NZ screen industry’s future, and someone to drive it forward, has seen us floundering around for well over a decade now.

Sure there’s been some tinkering going on. Change the criteria here. Tweak the rebates there. Shuffle the diminishing funding around a bit. And more. But it’s all reactive. Not proactive.

We all share in the blame—government, broadcasters, funding bodies, screen orgs, screen businesses, and the individuals who make up the screen sector.

It’s time for a paradigm change. To take us to a better place.

 

Tui Ruwhiu

Executive Director

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Film researcher Stephen Follows’ latest piece of work examines the endings of films to see if the ‘Hollywood Ending’ still rules the day. What he found is that there are three types of ending: Happy, Sad and Bittersweet.

It got me thinking about the current New Zealand Film Commission review of core funding for guilds and associations.

But before I go any further, let’s look at who receives core funding and what their current financial position is, as stated in their latest financial accounts:

GUILDSCORE FUND.FIN. POS.LEGAL STATUS
1DEGANZ$100,000$72,174, EoY 25Incorporated Society/Union
2Equity NZ$100,000$119,562, EoY 25Incorporated Society/Union
3NZWG$100,000$20,332, EoY 24Incorporated Society/Union
4SIGANZ$100,000$166,224, EoY 25Incorporated Society
ASSOCIATIONS
5NAW$120,000$124,868, EoY 24Incorporated Society
6PASC$100,000($6,183), EoY 25Incorporated Society
7PISA$100,000$35,771, EoY 24Incorporated Society
8Script to Screen$100,000$120,043, EoY 25Registered Charity
9SPADA$100,000$575,410, EoY 25Incorporated Society
10WIFT$100,000$140,170, EoY 24Incorporated Society

 

Notes:
The financial position simply means that once all liabilities/debts are cleared on the final date of the fiscal year reported on, that is how much would be left in the bank.

The above numbers are a simplistic representation of each guild and association’s finances. They have other revenues streams as well outside NZFC core funding, and have different costs associated with their operations and activities.

As incorporated societies or charities, they essentially operate as non-profits.

The big question for NZFC is: Is core funding for guilds and associations the best and or most efficient use of their funds for industry support, at just over $1 million a year? The corrolary is: if core funding is good use of funding, who should get it and how much?

The big question for the guilds and associations is: Will we receive all, some or none of the funding after the review is complete and a decision is made? And the corrollary for the guilds and associations is: if we don’t get it, how will we survive and what will we do or not do if we can’t make up the difference?

Every guild and association can make its case that the work they do is vital to a healthy, functioning New Zealand screen industry.

For NZFC—and for NZ On Air and TMP as well—they need to figure out what makes a healthy, functioning New Zealand screen industry, and if guilds and associations fit within that. And if they do, what if any support, financial or non-financial, direct or in-direct, might they provide?

The answer is going to be happy, sad, or bittersweet, not just for each one of us guilds and associations, but also for the individuals who make up the screen industry as well. We expect to find out at the end of this year.

 

Tui Ruwhiu
Executive Director

 

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Electioneering is in full swing as we head towards November.

It was just eight weeks ago that Reuben Davidson, Labour Spokesperson for Broadcasting, Media and Creative Economy, stood in front of the New Zealand screen industry at the Big Screen Symposium and said he was fully supportive of a streamer levy.

As recently as the Tāmaki Makaurau Screen Industry Network gathering at the beginning of this month, SPADA President Irene Gardiner was assuring everyone in attendance that all the parties in opposition were on side regarding the levy, except for Te Pati Māori, who hadn’t committed to anything.

Then, just over a week ago, Labour Leader Chris Hipkins flatly ruled out introducing a streaming levy if elected in November.

It just goes to show you that political expediency will always win out in an election year.

The fear word here is tax. National pitched the streamer levy as a tax. Just another tax from Labour, they cried. Labour wants it clear that there’s only one tax they are going to bring in if they win, and that’s a capital gains tax.

A levy is not a tax, though, but that didn’t matter to Hipkins, who said: “We’re not adding a levy onto everybody’s Netflix account.”

As if everybody has a Netflix account in New Zealand. I can’t imagine those who can barely afford groceries, rent, petrol and electricity are subscribing to Netflix or any of the other streamers.

Streamer subscriptions are a luxury, not a basic essential. But in an election year, you can’t make complex arguments for or against anything. Elections demand simple messaging. And Hipkins’ simple message was clear.

In the ensuing brouhaha around this, both Finance Minister Nicola Willis and Minister for Arts, Culture and Heritage Paul Goldsmith ruled out a streamer levy, too. So we’re stuffed on this front no matter who wins the election, it would seem.

That comment from Hipkins, though, is even more revealing, because it shows just how embedded Netflix and the other streamers have become here, even in the minds of the politicians we look toward to help protect and promote New Zealand’s domestic screen sector.

So where does the future of the NZ domestic screen industry stand now?

Clearly not in the hands of SPADA, as they seem fresh out of ideas, as Gardiner recently wrote: “If we’re not going with a levy as our form of regulation, then what are we doing, and when are we doing it? Perhaps our politicians think a quota/direct investment would work better for us than a levy. That could be great. But it’s time to do something. And please don’t treat a serious issue for us like a toy you’re playing with…”

Better starts now, Labour’s simple election slogan tells us. From a domestic screen industry perspective, hard to believe that.

 

Tui Ruwhiu
Executive Director