'Hobbit' director Peter Jackson denies animal abuse allegations

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The person who is most at fault is not Peter Jackson. It is the Animal Coordinator Steve Old.
He was responsible for leasing that farm which was a hilly sheep farm unsuitable for horses. Several other suitable properties were put forward by the horse trainer.
Old was also responsible for hiring staff that were not qualified to look after horses and vetoed every attempt of the horse trainer to hire suitable staff. He also prevented the horse trainer from making sensible training decisions. He insisted on his girlfriend training horses even though she was not qualified to even be riding them and caused many problems with their training when she did ride them. He also insisted on other unqualified people being allowed to ride horses.
Steve Old also did not put any safe and appropriate training facilities in place. This was because he wanted to ensure he got the job by coming in under the budget outlined by another more qualified Animal Coordinator. He prevented the horse trainer from putting any facilities in place other than those that the horse trainer paid for out of his own pocket.
Steve Old turned a blind eye to wilful abuse of animals - one case in which his own father was the abuser of a pig. This same person - Les Old - also sexually harassed a female staff member. When she told Steve that Les had groped her Steve fired her.
Steve used production money and resources on his own private projects such as The Great NZ Trek. He pulled staff members away from caring for the animals on the film and sent them to do work on projects elsewhere during which time they were paid with film money.
He bullied staff members into keeping quiet about any negative aspects of their work and told them they would be fired if they didn't fall into line.
The head horse trainer, another horse trainer and other wranglers resigned from the film after two months because their complaints about animal welfare were ignored and were not passed on to people higher up in the chain of command. Emails were sent after they resigned (in Feb2011) detailing everything that was dangerous and needed to be rectified. I understand that these emails have only recently been passed on to Peter Jackson.