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The Ministry of Economic Development is the latest in a series of advertisers to withdraw from controversial new TV3 show Californication.
The series premiered last week amid calls from Family First for a boycott on all companies who advertised during the show.
The ministry's Buy NZ Made campaign featured during the screening.
The American series starring former X-Files actor David Duchovny has been described by various groups as reprehensible, highly offensive and pornographic.
Episode one featured explicit sex scenes, nudity, teenage drug use and bad language.
Ministry of Economic Development chief executive Geoff Dangerfield said the ministry had not been informed of the nature of the programme, or its AO rating, prior to screening.
"Our media booking schedule, prepared on 16 October, showed a booking with TV3 for a comedy programme at this time. The ministry has taken steps to ensure that it will not advertise in future during this programme and we have reinforced with our media buying agency our requirement to avoid advertising on programmes of this nature," he said.
Burger King, CRC, Finish Dishwashing Liquid, Cadbury, Flight Centre and Ferrit have all withdrawn advertising from the show's 9.30pm timeslot.
Bob McCoskrie, national director of Family First NZ, said if companies were concerned about declining moral standards they should not be associated with the show.
"Television programmers are simply using shock tactics to increase their ratings but families are sick and tired of this offensive type of programming," he said.
TV3 marketing and communications director Roger Beaumont told NZPA after the show screened on Thursday night about 10 people had called the following day, most of whom "weren't in favour" of the show.
He said he was comfortable with the time slot and the detailed censor's warning which screened.
"We think we were very responsible with the very explicit warning which was on the front of the show," he said.
"People would have watched it of their own free choice."
Mr Beaumont said TV3 "has a reputation for being edgy and pushing the boundaries a little".
- NZPA