Hannay was born in
Wellington and attended
Scots College. His first job in the industry was as an extras casting assistant for film
Summer of the Seventeenth Doll. Hannay produced his first feature film
The Set in 1968 and then moved to television and became head of production for Gemini Productions from 1970–73 and 1975–76. In 1974 he was general manager for The Movie Company, a production subsidiary of
Greater Union. From 1977 he was an independent producer and was involved in almost 50 film projects which starred Richard E. Grant and Tom Long. Hannay was passionate about encouraging new talent as an educator and mentor and across his career worked with many writers, producers and directors on their first feature films. In November 2012 Hannay established the Bathurst Film Factory co-operative to foster the filmmaker talent in the area. He was diagnosed with cancer in March 2012, and died in March 2014. An obituary described him as "one of the pioneers of the modern Australian film industry, a passionate cinephile, mentor and loyal friend." ==Personal life==