But Council of Trade Unions president Helen Kelly said the crowd was "in a lynch-mob mood thanks to Richard Taylor, who has obviously wound them up like springs" and actors had to call the meeting off. "It was too dangerous."

That left throngs of film workers chanting "Save The Hobbit" to march down Willis St and Lambton Quay to the Cenotaph, where Taylor addressed them through a loudspeaker.

Marchers waved banners saying "Keep it Made in New Zealand" and "SOS Hobbits", and held large photographs of the Australian national director of the MEAA Simon Whipp with the words "Wanted for the murder of the New Zealand film industry".

"The spectacle of NZ Actors' Equity suddenly cancelling their Wellington meeting, because film workers wanted to express to them their concern at losing The Hobbit, exemplifies the pure gutlessness of this small, self-centred group," Sir Peter said.

"They don't appear to care about the repercussions of their actions on others, nor are they prepared to take responsibility for decisions made in their name.

"NZ Equity constantly refer to 'good faith' discussions but they have never acted in good faith towards our film."

Sir Richard said he felt a limited few, powered by an Australian union, were holding the New Zealand film industry to ransom. He could "only hope" that the film would stay in New Zealand.

"The reason we have come out tonight is because we just couldn't stand by it all ... "

Ms Kelly said union members would not be at fault if The Hobbit moved overseas. Instead, it was Warner Brothers seeking to gain greater tax breaks and lower wages.

Set designer Helen Strevens was at the Stone St Studios meeting, which was also attended by some actors.

"We just want them to realise there are hundreds and hundreds of people who work in the film industry in New Zealand who aren't members of Actors' Equity who ... are actually happy with the way we work here."