The Hobbit will be made in New Zealand, PM confirms

Two movies based on The Hobbit will be filmed in New Zealand as planned, the country's prime minister has confirmed.

The announcement follows two days of talks with Hollywood executives over whether the Lord of the Rings prequels should be shot in the country.

Warner Bros and New Line had considered taking the production elsewhere after acting unions threatened to boycott the films in a row over wages.

David Silitto reports.