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Problems deepen for HOBBIT movies…

New Zealand’s Prime Minister, John Key, says that the situation is still ” 50-50″ after an attempt was made to convince Hollywood executives to shoot the films in the country.

Talks between the Prime Minister and Hollywood executives ended in an apparent deadlock earlier today after John Ket met with Warner Brothers at his Wellington Official Residence to persuade them to shoot the film in New Zealand. The sets for Hobbiton, for example, still remain there from the LORD OF THE RINGS. It wa a move that followed street protests across New Zealand by those concerned that the production may go elsewhere, even though the previous installments were shot there.

The talks followed an acting Union’s boycott over pay and conditions which threatened to derail the films. The boycott, which was backed by other unions across the globe, was withdrawn last week, but Jackson said the row had damaged relations and caused concern in Hollywood that New Zealand was not a “stable” location to make films.

Key later confirmed that the sticking point remained uncertainty over industrial relations. He said talks would reconvene later and that he hoped to reach a decision in the next 24-36 hours.

“[The executives] have a lot of goodwill towards New Zealand, but there’s no question that the industrial action caused concern on their side,” told the New Zealand Herald

“In the conversations I’ve had with Warner Brothers so far I’ve made it quite clear if it comes to a bidding war, then New Zealand’s out, because I don’t think that’s the right way to run this,” he said. “We don’t want to be renegotiating with every single production company that comes”

THE HOBBIT is based on the adventures of Bilbo Baggins, a hairy-footed homunculus who lives in Middle-Earth, which is filled with wizards, elves, goblins and trolls. He goes on a quest to find treasure belonging to a company of dwarves which has been stolen and hoarded by a great dragon, Smaug.

Filming on the two-part big screen adaptation is due to start next February, with a release date for each part of December 2012 and December 2013 respectively.

Check back for updates on the resolution of this saga here…

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