At 3:45 pm police were notified that there was a boat emitting smoke and was possibly on fire off the Whakatane River Mouth.
Whakatane Coastguard confirmed that there was a passenger boat approximately one kilometre offshore on fire with 53 passengers and 7 crew on board.
A general call went out for any boats to assist and there was an immediate response from local charter operators. Four large vessels and Coastguard were present at the scene very quickly.
At about 4pm a mayday call was received by NZ Rescue Coordination Centre that they were abandoning the vessel.
All passengers and crew were rescued from the sea and transported to a triage centre on Whakatane Wharf.
After assessment by Ambulance one passenger and one crew member were transported to Whakatane Hospital as precautionary matter.
The vessel has subsequently sunk.
Any enquiries with regard to passengers are to be directed to the tour operator.
Police would like to thank the response of local operators who assisted with the rescue and undoubtedly saved the lives of those on board.