Wellington - Rising oil prices will help New Zealand, the world's biggest exporter of milk products, continue to benefit from high international commodity dairy prices, according to a government report on Tuesday.

Oil prices show no sign of declining, so demand from members of the Organization of Petroleum Exporting Countries (OPEC), who take 21 per cent of New Zealand's total dairy exports, should remain strong, the Ministry of Agriculture and Forestry (MAF) said.

Wellington - The New Zealand economy is in a recession, having contracted for two successive quarters, the Treasury said Tuesday in its monthly review of economic indicators.

The report backed consistent speculation of a recession by analysts, though this will not be officially confirmed until Statistics New Zealand releases economic data for the June quarter next month.

This is expected to show that the New Zealand economy registered negative growth in the quarter following a contraction in the first three months of the year.

Wellington - More than 1,700 passengers arrived back on dry land in Auckland Friday, telling reporters they had experienced a "nightmare, like a disaster movie" on a cruise ship hit by a subtropical storm in the Pacific.

Graphic footage, showing the moment when the P&O liner Pacific Sun rolled Wednesday as it hit 7-metre swells and 50-knot winds, was screened on New Zealand's TV3. It showed chairs, crockery and glass flying and gaming machines flung from walls as passengers screamed while they were steaming 600 kilometres north of Auckland.

Wellington - About 40 passengers were injured when the P&O cruise ship Pacific Sun rolled sharply in mountainous seas as a storm lashed New Zealand, news reports said Thursday.

The injured were treated by doctors and nurses on board after the ship on Wednesday night ran into 7-metre swells and was battered by 50-knot winds 600 kilometres north of Auckland, Radio New Zealand reported.

It was due in Auckland Thursday morning, but the storm, which left a trail of destruction as it raged down the country, has delayed its arrival by 24 hours.

Wellington - New Zealand's Court of Appeal on Thursday vetoed a takeover bid that would have restricted competition in the country's chain store retail trade.

The court overturned a High Court decision to allow either the locally owned Foodstuffs supermarket chain or Australia's Woolworths group to take over 128 variety and discount stationery stores of The Warehouse.

Both Woolworths and Foodstuffs have been vying to take over The Warehouse chain since each bought 10 per cent stakes in 2006.

The competition watchdog Commerce Commission rejected takeover applications by both groups in June 2007, but the High Court overruled that decision in November.