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DOMINION POST(www.stuff.co.nz)

More than half learner drivers fail new test: Learner drivers are flunking a tough new practical driving test, with fewer than half now making it through.

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Cost of flying Air NZ to rise as soaring fuel bills bite: Air New Zealand will increase domestic and trans-Tasman fares to cover the rapidly rising cost of fuel. Domestic fares will increase by between 2 per cent and 3 per cent and trans-Tasman fares will rise between $2 and $20 each way, depending on fare category and route.

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Debt being paid off, but savings not growing: There is no such thing as a "free lunch", and Kiwis are being scared into paying off debt though they are not yet convinced about saving more, according to Finance Minister Bill English.

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Hotchin bankruptcy looming: Lawyers for former Hanover Group director Mark Hotchin say he could soon be made bankrupt, amid revelations that civil charges are imminent and the cost of his sprawling Auckland mansion will top NZ$43 million.

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Fewer Kiwis may work in UK as rules firm: A visiting British diplomat says New Zealanders should not be unduly concerned about the second phase of reforms to Britain's migration system.

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Subsea cable firm seeks to allay rumours: To dampen speculation in Australia that its US$400million (NZ$486m) trans-Pacific communications cable might never be built, Pacific Fibre has revealed it has sold US$170m worth of capacity.

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

New Zealand retirees 'better off than elsewhere': New Zealanders have been scared into saving for their retirement, says Finance Minister Bill English, but retirees here will be better off than their counterparts in Europe, Britain and the United States.

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Auckland rent crisis at record high: Auckland's rental crisis has intensified - average weekly rent for a three-bedroom house has jumped $55 in a month and rents in popular suburbs have risen 25 per cent in the last year.

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Regulator probes Sky - TVNZ Igloo venture: The Commerce Commission has launched an investigation into whether the new pay-TV platform Igloo breaches its merger rules.

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Housing pick-up unlikely to spark interest rate lift: A pick-up in the housing market is not likely to rattle the Reserve Bank or weaken its resolve to keep interest rates low, economists say.

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Fibre firm: we can raise cable cash: A company hoping to build New Zealand's second international internet link has rubbished media speculation it won't be able to finance the project and says it "can see the finish line" of its funding efforts.

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HSBC rejects sale claim for NZ business: HSBC is not considering a sale of its New Zealand business, contrary to a report in the London-based Financial Times, its local branch said yesterday.

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• A Permanent Economic Emergency