Official documents reveal the extent of a disagreement between government departments over what support should be given to the film and television industries.
For many months Economic Development Minister Steven Joyce rejected calls for the rebate to be increased, as he took the advice of the Ministry of Business, Innovation and Employment.
It argued there would be no benefits from increasing the rebate.
But papers obtained by Radio New Zealand under the Official Information Act show the Ministry of Culture & Heritage and the New Zealand Film Comission had a different view.
Mr Joyce denied there was any deep rift over the issue, but said ministers eventually accepted the rebate needed to be increased.
The announcement of an increase was issued in December.