When it comes to Harry Potter movies, money works better than magic. Industrial action by the actors' union Equity had threatened to disappoint millions of Potter fans when members were ordered to reject work on all UK-made films as part of a long-running pay dispute.

But a last-minute deal struck by the producers has warded off potential disaster, safeguarding production of the blockbusting series. A total of seven movies are planned, the first of which, Harry Potter and the Philosopher's Stone, receives its world premiere in London on 4November.

Equity spokesman Martin Brown said: "We've made an agreement that will ensure all of the films can be made without being affected by any action, and in return the per- formers will get benefits relating to the commercial success of the films, which should be considerable."

In a separate deal, Equity has offered to exempt the producers of 17 independent films from industrial action on condition they promise to give actors a share in their profits as soon as they can afford to.

The movies, which would have faced cancellation had the agreement not been struck, include Cromwell and Fairfax, an historical epic made by Natural Nylon, the company owned by the actors Jude Law, Sadie Frost and Ewan McGregor.

The Harry Potter deal comes just weeks before the second film in the series is due to begin pre-production.

Equity has been locked in negotiations with Pact, the organisation which represents British film producers, for months over the question of "residual payments" for movie stars. The union is demanding that British actors be paid fees reflecting the level of video and DVD sales.

© 2001 Independent Digital (UK) Ltd