PRESS DIGEST-New Zealand newspapers - Sept 24

WELLINGTON, Sept 24 (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)

Five years' pay freeze warning for state sector: The country's 44,000 public servants face a virtual five-year pay freeze, despite the recession being officially over.

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Recession dies with a whimper: A rocketing dollar and the end of the recession won't bring sharp price drops for big-ticket items such as cars or flash televisions, some economists and retailers are saying.

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Pyne Gould seeking NZ$270m: Investment firm Pyne Gould Corporation PGC.NZ aims to raise up to NZ$270 million in a rights issue and a placement to institutions.

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Air NZ: travel decline has bottomed out: Air New Zealand AIR.NZ chief executive Rob Fyfe says early signs exist that the decline in travel has bottomed. But the airline is cautious in calling an upward trend.

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Millions at stake in IRD's 15 battles: Tens of millions of dollars of potential tax revenue is at stake in 15 court cases the Inland Revenue Department is fighting against overseas-owned companies which used debt instruments to fund their New Zealand operations. - - - -

Banking bolsters NZ Post result: Kiwibank accounted for twice as much of state-owned New Zealand Post's profit as postal services in the year to June. State-owned New Zealand Post's net profit was down nearly 35 per cent to NZ$71.8 million from NZ$110.2m last year, as Kiwibank's gains were offset by a big fall in mail and parcel volumes.

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

GDP rise suggests recession may be over: The economy expanded, just barely, in the June quarter, marking a technical end to the recession, though economists acknowledge it will not feel like much of a recovery while unemployment climbs.

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PGC aiming for NZ$270 million: Pyne Gould Corporation PGC.NZ has locked in at least NZ$237 million in new capital in its long-awaited recapitalisation plan unveiled yesterday but may raise more than a quarter of a billion once an institutional placement and share purchase plan are completed.

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Retailer ready for upturn after NZ$26m loss: Pumpkin Patch PPL.NZ believes the recent performance in its share price shows the market is confident the company is well poised to make the most of an economic recovery.

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Contact boss' base salary to be frozen: Contact Energy CEN.NZ says the base salary of its managing director, David Baldwin, which has jumped from NZ$725,000 to NZ$838,856 will be frozen at that level.

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