A quintessential Scottish film about the legendary Loch Ness monster will be filmed in New Zealand rather than Scotland after film makers were lured by favourable tax incentives.

NZ has already been used as a location for blockbusters like King Kong, Lord of the Rings and The Chronicles of Narnia.

The loss was described as 'a blow' by Scottish Screen's Celia Stevenson.

She was reported in The Daily Express as saying: 'To lose any film like this is a blow. It will be a wonderful film because it is a terrific story.'

Meanwhile in a related story, Ireland is set to see major Hollywood films coming to its shores as a result of new tax breaks. One studio boss said the new laws would lure major US studios, The Daily Mirror reported.