Criticism of a multi-million dollar rebate for James Cameron's 3D blockbuster Avatar is short-sighted, the Screen Production and Development Association of New Zealand (Spada) says.
The film's production company received a $44.69 million large budget screen production grant on its spend of $307 million in New Zealand.
The 15 percent rebate was "exactly how it works elsewhere in the world", Spada chief executive Penelope Borland said.
Calls to cap the grants scheme would encourage filmmakers to go elsewhere, she said.
The film's success had added to New Zealand's filmmaking reputation, and Weta Digital's work on the film "heralds a completely new phase in New Zealand filmmaking".
Ms Borland said Avatar had come to New Zealand "purely for the technological filmmaking knowledge built up here".
"'This is exactly where we need to be as a country - renowned for our technological know-how, creativity, talent and positive, can-do attitude...
"In addition the success of Avatar is likely to attract much more international work into New Zealand because of our technology, creativity and our own leading edge intellectual property developed by Weta Digital."
NZPA