Law on both sides of Hobbit controversy

In the ongoing controversy across the Tasman, the Attorney-General Chris Finlayson used New Zealand’s Commerce Act to say The Hobbit producers can’t enter into union-negotiated agreement with performers who are independent contractors, but the NZ Actors’ Equity claimed law “is no problem” in this situation.

The Attorney-General Hon Chris Finlayson issued the following statement:

There is an issue as to whether New Zealand’s Commerce Act 1986 (“the Act”) prevents the Hobbit movie producers from entering into a union-negotiated agreement with performers who are independent contractors.

The New Zealand Government has obtained advice from the Crown Law Office (legal advisors to the New Zealand Government) that confirms the Act does prevent the producers from doing so. Section 30 of the Act effectively prohibits competing independent contractor performers from entering into or giving effect to a contract, arrangement or understanding that has the purpose, effect or likely effect of fixing, maintaining or controlling prices for goods or services – which would include performance services.