PRESS DIGEST-New Zealand newspapers - April 7

WELLINGTON, April 7 (Reuters) - Following are some of the lead stories from New Zealand metropolitan newspapers on Tuesday.

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)

60,000 more jobs to go: Unemployment is now set to go above the Treasury's previous worst-case scenario of 7.2 per cent, leaving a further 60,000 people jobless by next year.

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Fletcher (FBU.NZ) 'fearful' of bank exodus: The potential fallout from foreign banks withdrawing from New Zealand is "huge" and a key reason for Fletcher Building's $505 million capital raising, the company says. The capital raising came in for criticism last week, with Shareholders Association chairman Bruce Sheppard saying that it disadvantaged individual investors

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Retailer won't disclose labour savings: The Warehouse Group (WHS.NZ) says its moves to reduce labour costs and improve productivity were not significant enough to warrant a separate disclosure to the sharemarket.

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Interest cut sought for debentures: Propertyfinance Group is hopeful it can get approval for a plan to substantially reduce interest payments to investors holding its mortgage-based debentures.

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

Super city: Key gives grassroots more say: Prime Minister John Key will today announce a super city council for Auckland ... but one with more grassroots democracy than recommended by the Royal Commission on Auckland Governance

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Pensioners better off in NZ: study: New Zealand's older citizens are well looked after by the Government - in fact, better than in the world's richest nations.