New Zealand to remain Middle Earth studio

New Zealand prime minister John Key announced on Wednesday evening (local time) that The Hobbit will be filmed in New Zealand after all. New Zealand had been in negotiations with Warner Brothers over how big a tax subsidy it would receive, as well as a tussle with actors' unions, who had previously threatened to boycott the film. Key said that his government would give Warner Brothers a $15 million tax rebate, as well as a $10 million to offset marketing costs. Read more: Stuff New Zealand, New York Times