PRESS DIGEST-New Zealand newspapers - June 11

WELLINGTON, June 11 (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)

Worth accuser revealed as Labour stalwart: The woman who alleges harassing calls and texts by National MP Richard Worthis heavily involved in the Labour Party and a candidate for Labour selection in Botany. - - - -

Nats promise local calls will stay free: The Government has ruled out axing free local phone calls or foreign ownership restrictions on Telecom (TEL.NZ) after Labour urged it to "front up" on plans for a review of the Kiwi Share. - - - -

Mortgages 'low as they will go': Home mortgage rates are as low as they will go because of a "deposit price war" between banks, but past cuts mean borrowers will be more than NZ$1 billion better off in the coming year, banks say.

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Banks 'costing farms NZ$450m': Farmers say banks are not passing on the full extent of falls in official interest rates and it is costing them about NZ$450 million a year, with the dairy sector also exposed by much lower returns.

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

Banks hit back at MPs' attack: Banks say fierce competition for retail deposits is the reason mortgage lending rates have not fallen in line with the Reserve Bank's official cash rate.

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IRD names tax-dodge targets: Online traders, property speculators and tax agents behind in their personal tax are among those who can expect the Inland Revenue's steely gaze in the coming year.

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Glimmer of hope on the cards for retailers: Shoppers used their plastic cards more freely in May than they have for months, in what could be an early sign of recovery in the hard-pressed retail sector.

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