TVNZ is facing severe criticism over its decision to allow the National Bank to sponsor its news updates.

The National Bank is a subsidiary of the ANZ Banking Group, which is providing financial services to one of the world's largest and most controversial logging companies, Rimbunan Hijau.

This Malaysian logging company is accused of being responsible for large-scale rainforest destruction in Papua New Guinea (PNG).

Greenpeace, the Green Party and the Indonesia Human Rights Committee are calling on TVNZ to reassess their commitment to the National Bank.

Green Party co-leader Dr Russel Norman said TVNZ now had a vested interest in protecting the National Bank brand, which could lead to news going unreported if it could harm the National Bank.

He said this could compromise TVNZ's ability to carry out its democratic functions as a credible news media.

"Once again this demonstrates why we need public news broadcasting free from commercial linkages in New Zealand," he said.

He said media should be holding large corporations accountable for their environmental performance.

"It is disturbing to find these same news organisations being sponsored by the companies linked to the destruction of the environment," he said.

TVNZ failed to return calls and Minister of Broadcasting Trevor Mallard was unavailable for comment.

Costs of rainforest logging

Rainforest destruction is thought to be responsible for 20 percent of greenhouse gas emissions globally.

He said human rights abuses associated with logging in PNG were also well documented by the World Bank, and most of the logging was carried out illegally.

The World Bank had now pulled out of logging projects in PNG, he said.

The ANZ Banking Group is also causing controversy in Australia, for considering financing a paper pulping plant in Tasmania.

Dr Norman said the plant would cause "massive forest destruction" and release poisonous chemicals into the air and waterways.

"TVNZ says that one of the reasons they are happy with the National Bank sponsorship is the credibility of the National Bank brand," Dr Norman said.

NZ companies linked to forest destruction

Greenpeace New Zealand forests campaigner Grant Rosoman said the logging industry was dominated by Rimbunan Hijau, one of the world's most destructive loggers of tropical forests.

Rosoman said Rimbunan Hijau owned The LumberBank in Onehanga, Auckland, and some plantations in New Zealand through Ernslaw One in the Coromandel, Manuwatu and Southern Otago.

He said Rimbunan Hijau simply used a bulldozer to decimate forests.

"It's called predatory logging. They hunt down the trees and just take the ones they want. They damage a huge amount of forest just to get a few trees."

He said most of the kwila timber in New Zealand had originally come from illegal logging in PNG and through Indonesia -- and because New Guinea Island has the world's largest remaining forest, logging companies were honing in.

"Go down to any outdoor furniture store or DIY retailer and you will find kwila," he said.

Twenty to 70 percent of the forest is destroyed by Rimbunan Hijau in their logging process, Rosoman said, and the company also bribes and corrupts members of communities in PNG to persuade them to give them the rights to log.

"They buy off a faction of the community and often corrupt the community leaders and the community ends up fighting against themselves."

The loggers often promise the communities they will build schools, hospitals and roads, but often they do not even pay the royalties let alone fulfill these promises, he said. Epoch Times Online/Pacific Media Watch, 24/01/08.