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A chunk of Otago Harbour will be reclaimed, and Dunedin's railway line shunted sideways, when the next stage of a walking and cycling pathway to Port Chalmers is built.

Earthworks for a three-level car park to be built behind the former chief post office in Dunedin are expected to start within a month.

New Zealanders living across the Tasman have been labelled "South Sea Poms" and "carping Kiwis" after a survey showed they are Australia's unhappiest migrants.

The approach to Dunedin International Airport is about to become prettier, with new landscaping on Miller Rd.

Housing has emerged as the largest issue to date in the election, which is still five months away. Housing Minister Nick Smith was in Christchurch this week with further announcements for the earthquake-damaged city. Business editor Dene Mackenzie reviews the announcements so far.

If inspectors from the Ministry for Business, Innovation and Employment were in Wanaka yesterday, almost every retailer in the resort will face fines for breaching Easter trading laws.

Plans for a $100 million waterfront hotel in Dunedin have been scrapped and the developers' partnership with the Dunedin City Council has descended into acrimony.

Restrictions on mobile trading in Dunedin are to be relaxed, although the council has warned it will be looking for mobile traders to pay their fair share of trading costs, as fixed businesses do.

The Government had a vendetta against Dunedin, Labour Party leader David Cunliffe said in an interview in the city yesterday.

An upgrade of the main pedestrian thoroughfare linking the chief post office hotel development and central Dunedin might be on hold after the budget could not be stretched far enough.