At 3.45pm emergency services received reports of a ferry on fire off the coast of Whakatane.
There were 57 passengers and crew on board. The blaze took hold of the vessel forcing those on board to jump into the water. A Coastguard boat and a number of small local vessels went out to assist in recovering passengers and crew from the water. A helicopter carried out a sweep of the water to confirm everyone had been rescued.
The passenger manifest has been checked against those rescued from the water and everyone is accounted for.
One person has been taken to hospital suffering from smoke inhalation and one for a minor injury caused by jumping from the boat.
Media enquiries should be referred to Communications Manager Kim Perks on 027 234 8256.