Key members of the New Zealand film industry have called on the country's government to introduce tax incentives to encourage private investment in the local industry.

The recommendation, which forms part of the findings of a specially appointed Screen Production Industry Taskforce, says that tax incentives should be available to both local and foreign producers.

Foreign producers who want to access the incentives would have to attach themselves to a local company to help build the country's capabilities and infrastructure.

The call for a favourable tax regime comes as many nations around the world - from the UK to Canada - have recently unveiled lucrative tax incentives in a bid to beef up local production as well as attracting foreign shoots.

The 14-member Screen Production Industry Taskforce - which comprises some of the key names in NZ film - has been working for ten months on recommendations for the government.

Suggestions for breaking the film industry's dependence on cultural subsidies and creating an environment that allows the key companies to be the main drivers of growth underpin many of the recommendations contained the report.

Among other things, it calls for the creation of a Screen Council to provide leadership and independent policy advice to government.

One of its tasks would be to pursue the creation of a capital investment fund for the production of a portfolio of film and television, and of one or more specialist entertainment divisions within the trading banks.

A review of government agencies, including the New Zealand Film Commission (NZFC) - which funds most NZ films - is also called for.

The report also implies that foreign production is less valuable in the long term than building up local production capacity. It points out that the vast majority of revenues from The Lord Of The Rings films have flowed back to New Line in the US.

Soon after being appointed by the Minister of Industry and Regional Development Jim Anderton, the film taskforce said last year that it would aim to double foreign exchange earnings to $224m (NZ$400m) per annum within five years. It also wants to see at least 10 companies turning over $28m and at least 20 companies $14m.

Interested parties have until April 22 to influence the government's decisions on which parts of the report should be implemented.