NZ industries eyeing Aust due to lack of support

A lack of government support is driving key industries in Wellington, NZ, to look across the ditch — and further afield — for more opportunity, according to economic development agency WellingtonNZ.

CEO John Allen said two pillars vital to local economic growth — gaming and film — are seeking a clear signal from government that they are valued. The New Zealand Gaming Developers conference was hosted in Te Whanganui-a-Tara (Wellington) last week, with a day dedicated to the intersecting industries of gaming and screen — a chance for thought leaders from across NZ and the globe to come together, share ideas and innovation, and seek new opportunities.

“It’s a bittersweet moment to have a conference of this magnitude here. I am proud WellingtonNZ is supporting this taking place in New Zealand’s heart of screen and gaming, but I’m aware if we don’t act soon, we risk losing both of these industries overseas,” said Allen.

Allen said both sectors are currently looking elsewhere for opportunity as it becomes less competitive to operate locally.

Gaming is one of New Zealand’s biggest growth industries, bringing in $276m in 2021, with a steep trajectory predicted of $1bn by 2025. With Australia announcing a 40% tax rebate in July, studios are actively considering moving. Allen said New Zealand has nothing on the table to support this burgeoning sector.

“It’s disheartening when you work with businesses like PikPok and Dinosaur Polo Club on hard-won successful journeys, then met with a lack of support from government to help amplify the opportunity, resulting in their studio expansion plans being realised in overseas markets.”

With the Review of Government investment in the screen sector underway there is real uncertainty whether New Zealand will be competitive on an international stage, potentially driving productions to other parts of the globe, including Australia.

Ministry of Business Innovation and Employment figures valued the screen industry at $3.3bn in 2018, directly employing 16,000 people in 2017.

“The New Zealand film industry, in particular Wellington’s film industry, has punched above its weight globally for a long time,” Allen said.

“The impacts of the LOTR trilogy are not limited to film and the initial cash injections during production, but includes ongoing tourism, upskilling of talent, and even last year it spurred a conversation on one of the world’s most listened-to podcasts between Dax Shepard and Elijah Wood about how Wellington was fundamental to their formative years.

“People across the world talk about New Zealand and Māoridom thanks to film — Taika Waititi wove our culture through his latest production of Thor.

“These elements are priceless and get into people’s hearts and minds in a way pop culture allows that a milk bottle doesn’t.

“We need government to decide whether or not it wants the screen and gaming sectors here in Aotearoa, and by ensuring we offer competitive environments for these growth industries to continue to add to the Kiwi economy and grow.”

Image credit: iStock.com/Andrew Chambers