PRESS DIGEST-New Zealand newspapers - May 20

WELLINGTON May 20 (Reuters) - Following are some of the lead stories from New Zealand metropolitan newspapers on Wednesday.

Stories may be taken from either the paper or Internet editions of the papers.

Reuters has not verified these stories and does not vouch for their accuracy.

DOMINION POST(www.stuff.co.nz)

Hilton eyes new site on waterfront: One of the world's biggest hotel chains is determined to build a luxury five-star hotel on Wellington's waterfront saying the city is a strategic asset. - - - -

Nats set to cut science budget: National is set to slash funding for agriculture and food research, dumping Labour's NZ$700 million Fast Forward fund in favour of a scheme worth NZ$30m a year.

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Telecom will 'play in price': Telecom TEL.NZ, Vodafone and NZ Communications appear to have a tacit understanding not to trigger a costly price war that would slash profits in the NZ$2 billion mobile market. - - - -

Overused power system 'being flogged to limit': The power system is "being flogged to the limit" and there is not enough back-up generation, according to one critic after the national grid between the North and South Island was cut again for repairs. - - - -

ING in NZ$100m asset sales bid to reduce debt: ING Property Trust ING.NZ is targeting another NZ$100 million of asset sales to reduce debt, after a near NZ$90m dive in property values.

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NEW ZEALAND HERALD (www.nzherald.co.nz)

Budget the most important since 1984: Next week's Budget is one of the most important in over a quarter of a century, says Treasury Secretary John Whitehead.

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Pressure on F&P to shake up board: Former activist fund manager Simon Botherway is being touted as a possible nominee for the board of Fisher & Paykel Appliances FPA.NZ.

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Fonterra boosts internet sales: Fonterra plans to double commodity sales on its internet platform, globalDairyTrade, where it has regular independently run auctions.

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Hilton to run historic Taupo hotel: New Zealand's second Hilton Hotel will be a kilometre from the shores of Lake Taupo at the historic Terraces Hotel.

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