By DAILY MAIL REPORTER
Director Peter Jackson said the filming of The Hobbit faced being moved from its location in his native New Zealand due to a pay dispute
But new 'Hobbiton' may never be used after producer Peter Jackson threatens to move filming to Eastern Europe
Bilbo has called in the builders as preparations for the latest JRR Tolkien blockbuster continues. Just weeks after sheep were spotted making the most of the old Lord Of The Rings' set, the New Zealand location has been revived for the two-part Hobbit prequel.
New Hobbit holes are being dug, while the old ones are being spruced up ready for the start of filming later this year. The set, which will portray the Hobbit village of Hobbiton, will remain as a permanent tourist attraction and theme park near the Waikato town of Matamata.
Pictured above are the hobbit holes under construction on the film set in Matamata, New Zealand. The filming could move to eastern Europe
Even though millions of pounds have been lavished on recreating 'The Shire', an industrial dispute could mean the whole production is shifted to Eastern Europe.
Hollywood studio bosses This morning revealed they were looking at alternative locations for Peter Jackson's 'Hobbit' movies after an actors' union threatened a boycott.
New Line, Warner Bros. and Metro-Goldwyn-Mayer said in a joint statement that union allegations against Jackson were 'baseless and unfair', adding they tried to avoid filming in locations with potential for workforce instability.
'As such, we are exploring all alternative options in order to protect our business interests,' they said.
The row erupted this week when unions called for an international boycott of 'The Hobbit' until its producers accepted New Zealand Actors Equity's right to negotiate minimum standards on behalf of its members.
Grand Design: The old Hobbit holes dug in 1999 for the Lord Of The Rings trilogy are being spruced up for the new productions
The New Zealand Film Commission said the row was threatening the local film industry, which has benefited from films such as 'Lord of the Rings' being shot in the country
Jackson hit back by accusing the union, which is linked to Australia's Media Entertainment and Arts Alliance, of 'bully-boy' tactics as part of a campaign to muscle in on the New Zealand film industry.
He has said 'The Hobbit' could be moved to eastern Europe if the dispute is not settled.
The studios said they had good relations with actors' unions but did not accept claims actors on 'The Hobbit' set were being treated unfairly.
'We believe that in this case the allegations are baseless and unfair to Peter Jackson and his team in Wellington who have been tireless supporters of the New Zealand motion picture community,' they said.
Earlier, the New Zealand Film Commission said the row was threatening the local film industry, which has benefited from films such as 'Lord of the Rings' being shot in the country.
Abandoned: Sheep moved back into the Lord Of The Rings set after filming ended, but Hobbit producer Peter Jackson, right, revived the location ready for filming the two-part prequel. Now an industrial dispute could mean it has to be moved
'It's critical this issue be resolved before it damages the film industry and the wider economic environment we operate within,' Commission chief executive Graeme Mason said.
Mason said New Zealand had a reputation for high-quality filmmaking and big-budget international productions boosted the entire economy.
'These international productions provide employment, training opportunities, production experience and international exposure for New Zealanders and New Zealand,' he said.
'The Hobbit' has been stalled by financial woes at MGM, which is facing a debt of $3.7 billion and is negotiating a streamlined bankruptcy with creditors.
Mexican-born Guillermo Del Toro quit as director in May, citing almost two years of delays, with 'Lord of the Rings' director Jackson expected to replace him at the helm.
The Lord Of The Rings: The Return Of The King with Elijah Wood (left) pictured as Frodo, with Sean Astin as Sam, in a scene from the film adapted from J.R.R. Tolkien's classic
source: dailymail
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