Prime Minister John Key will meet film executives

The talks are scheduled for Wellington, New Zealand's capital, according to the spokeswoman, who declined to specify who would attend on behalf of the film producer. The prime minister wants to persuade Warner not to move the film out of the country over a labor dispute.

Unions and filmmakers have been at loggerheads since the New Zealand Actors' Equity union called on its members and others unions around the world to boycott the "The Hobbit." It accused producers of refusing to recognize its right to negotiate minimum standards for its members. This week the union appeared to back down, recommending talks on a new set of conditions for performers in the local screen industry—but that failed to ease Warner's concerns.

The company's New Line Cinema unit, which is making the film with Warner Bros. and Metro-Goldwyn-Mayer Inc., said earlier that it was actively considering locations outside New Zealand for the shoot.

New Zealand's alpine peaks, rain forests and wilderness provided the dramatic backdrop for director Peter Jackson's three "Lord of the Rings" films, which have been followed by other big-budget movies--including "The Last Samurai," "Prince Caspian" and Mr. Jackson's own "King Kong." The country's film industry generated 2.8 billion New Zealand dollars (US$2.1 billion) last year.

Mr. Jackson will also direct and produce "The Hobbit." The filling of a number of the leading roles was announced Friday. Martin Freeman, who starred in "The Hitchhikers Guide to the Galaxy" and "Hot Fuzz," will play hobbit Bilbo Baggins, the central character. The story follows his epic journey across the fictional land of Middle Earth.

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