[UPDATE by Devin: Green Lantern will be shooting in New Orleans next year]
A constant search for cheaper labor, better tax deals, and lowered production costs sends many domestic companies outside of the US to generate their product. Film studios are no different, and we’ve seen an increase in foreign production of domestic films in the last few years. Australia and New Zealand specifically have become hotspots for filmmaking- even illustrious gentleman and CHUD.com Editor Nick Nunziata has found himself in Melbourne, for the production of Don’t Be Afraid of The Dark.
The benefits of a foreign production quickly diminish however, when the local currency takes the kind of upswing that the Australian dollar has. Since Warner Brothers has been gearing up to shoot Green Lantern in the lower hemisphere, Australia has seen it’s dollar rise 16% in relative value. Inside Film reports that,
“Warner Bros is understood to be negotiating with the NSW State Government to receive a higher level of concessions in an effort to claw back between $US15 and $US25 million in value eroded by the currency gains.”
Other high-profile movies like Happy Feet 2, Narnia 2, and X-Men Origins: Wolverine are lensing in the down-under, or have in the recent past. Warner Brothers unfortunately had not arranged any kind of financing for Green Lantern before the value gain, and to do so now would create that $15-25m budgetary blow mentioned above. Australia is set to lose something in the neighborhood of 500 jobs if the Ryan Reynolds vehicle moves elsewhere, so there is strong chance some kind of consideration will be worked out.
The situation only threatens the scheduling and location of the shoot, so it is highly unlikely the film itself hangs in the balance.