Wilkinson Kate: Employment Relations (Film Production Work) Amendment Bill — First Reading 
Wilkinson Kate: Employment Relations (Film Production Work) Amendment Bill — First Reading 
[Volume:668;Page:14940] 
Hon KATE WILKINSON (Minister of Labour) 
: 
 I move  
That the Employment Relations (Film Production Work) Amendment Bill be now read a first time. 
 Over the past weeks industrial issues have highlighted a significant concern about the way that the international film industry operates. The Government is moving to ensure that New Zealand’s law is clear on the distinction between independent contractors and employees in the film production industry. This legislation will provide film producers with the confidence they need to make movies in New Zealand. The film industry is worth $2.8 billion to the New Zealand economy and the two  
Hobbit 
 films alone will bring in $670 million. It is essential that we protect this industry and the livelihoods of the thousands of hard-working Kiwis who depend on it. 
The Government is introducing this bill to provide certainty and clarity at the outset about the status of workers such as actors crew members and other production personnel involved in film-related work. The bill makes it clear that the status of these workers as contractors or employees is based on the decision they make at the beginning of the employment relationship. If they sign on as independent contractors they are independent contractors. If they sign on as employees they are employees. This change reflects common industry practice. Actors crew members and production staff are commonly hired as independent contractors. 
This bill amends the Employment Relations Act 2000 to provide clarity and certainty about the status of workers involved in film production work including production work for video games. It does not cover production work on programmes initially intended for television. It will address the uncertainty that can arise about the employment status of these workers and prevent unnecessary delays and litigation. Most people have agreed that these workers are independent contractors. However the potential for disputes about employment status creates uncertainty for film producers particularly if a dispute arises after production has commenced. This uncertainty can increase the cost involved in producing a film if it delays filming. The uncertainty has also been added to by the international boycott supported by local unions. 
Under the current law a previous agreement in relation to a person’s employment status can be challenged and overturned by the courts. Despite what the contract or agreement states the courts can look through it and decide whether the relationship is a contract for service or a contract of service. These legal challenges can create uncertainty for all the parties involved and can create high legal and compliance costs to reach a resolution. We need to provide this clarification so that the film industry will continue to make a significant investment in our economy and will film the 
 Hobbit 
 movies in New Zealand. Therefore it is appropriate that this bill be considered under urgency and through all stages.  
The Hobbit 
 was the catalyst for this amendment without a doubt but with or without  
The Hobbit 
 the uncertainty still remained. 
Film workers are intelligent and they understand perfectly the difference between being a contractor and being an employee. This law does not alter how they will approach their employment arrangements. It is business as usual. This law does not remove rights from anyone. It is not retrospective and it does not affect any existing employment agreements. Neither is it a new concept; sharemilkers and real estate agents already have industry-specific exceptions. 
This dispute began because a union without a mandate issued an international boycott against  
The Hobbit 
 as its first action in an effort to negotiate a collective agreement which is illegal under New Zealand law. For the unions this issue was never about workers’ rights; it was about power. This bill responds to the needs of the film industry by providing the certainty needed to continue making films in New Zealand—not just the two  
Hobbit 
 films but major films to come. The Government believes that this bill is in step with industry practice and is a simple and common-sense response. I commend this bill to the House.