Despite New Zealand's Economic Development Minister, Jim Anderton, stating that tax incentives are being seriously considered for the film industry, mixed messages are coming from the Government.

According to today's issue of the NZ Herald, Anderton said the country was looking at a number of options including a model based on Australia's recently introduced rebates.

The newspaper claims that one of the considerations driving the issue is the potential for the film adaptation of C S Lewis's Narnia books to use the country as a location.

The Lord Of The Rings received very generous benefits but the loophole that was used has since been closed.

Director Peter Jackson has been an outspoken advocate of tax incentives.