Film-maker Peter Jackson has warned that production on The Hobbit movie could close after disagreements with acting unions. The movie director is the executive producer of the upcoming Lord Of The Rings prequel and he said production could shut down or be moved from New Zealand to eastern Europe.

Hobbit Actors Union Boycott - Peter Jackson Warns of Uncertain Future.

The International Federation of Actors said that actors in New Zealand have 'struggled on non-union contracts for some time.'

Unions have told actors to pull out of the movie because of the dispute. Organizations in the UK, Canada, Australia and the US have said producers on the flick have refused to work on a deal with them.


In an open letter, Jackson said that the dispute was a 'grab for power' and added: "[This is] an attempt by the 'Australian bully-boy' to exert influence over New Zealand's film industry.

"It feels as if we have a large Aussie cousin kicking sand in our eyes... or to put it another way, opportunists exploiting our film for their own political gain.

"Seriously, if The Hobbit goes east - look forward to a long, dry big-budget movie drought in this country."

(Image: Splash News)