PRESS DIGEST-New Zealand newspapers - Aug 13

WELLINGTON Aug 13 (Reuters) - Following are some of the lead stories from New Zealand metropolitan newspapers on Thursday.

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)

Tongan ferry boss rejects report: The former Christchurch businessman at the centre of the Tongan ferry disaster denies he had any knowledge of problems that may have caused the vessel to sink with the loss of more than 90 lives.

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Blowout on bank bad debt reserve: The provisioning for bad debt at New Zealand's five major banks has increased fourfold in the past 18 months to reach NZ$816 million, a new report into the banking sector shows.

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Power prices not too high: Turner: Electricity prices are not excessive but they should not rise much more, former Meridian energy chief executive Keith Turner says.

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Wine industry losing some of its 'romance': Falling grape prices are forcing vineyard owners to sell up and others into receivership.

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Bill English vows to deter property boom: The Government is looking to head off a looming property boom as Finance Minister Bill English warns that the country cannot afford another debt-fuelled spending binge.

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

Tongan waters now graveyard: At least 93 people who drowned in the Princess Ashika are likely to be forever buried at sea because the wreck - found yesterday - is too deep.

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English: Extra taxes possible to aid recovery: Finance Minister Bill English has again refused to rule out introducing some form of capital gains or land tax as Treasury officials seek policy tools to prevent a premature housing boom and an overvalued dollar blocking economic recovery.

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Analysts pick rebound for Fletcher FBU.NZ: Analysts are predicting Fletcher Building will head back to profitability after this year's loss caused by a disastrous series of abnormal writedowns.

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Banks weather slump despite profit fall: The combined profits for New Zealand's five largest banks appeared to fall sharply during the year to March according to their statutory declarations, but the true level of decline in their core banking operations is difficult to ascertain, says PricewaterhouseCoopers.

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