Government announces $35m in Customs funding to stop flow of illicit drugs entering NZ

• The Government is allocating $35 million to Customs to combat rising organised crime and drug smuggling.
• The funding will add up to 60 roles for investigations, intelligence, and border operations.
• Customs Minister Casey Costello highlighted the growing threat of transnational crime targeting the Pacific region.

The Government is announcing a crackdown on illicit drugs entering New Zealand with an additional $35 million going towards Customs to fight a rise in organised crime groups.

Customs Minister Casey Costello announced the additional funding for Budget 2025 today, with the $35m set to be released over the next four years.

The new spending will provide Customs with funding for up to 60 additional roles, including investigations and prosecutions, intelligence, and border operations.

“New Zealand is increasingly being targeted by organised crime groups,” Costello said.

“The Government is committed to ensuring law and order, so it is investing in the tools and capacity agencies need to meet growing challenges.”

Transnational and serious organised crime threats were “growing worldwide”, she said.

“These groups are increasingly targeting the Pacific and New Zealand, which has some of the world’s highest prices for illicit drugs like methamphetamine and cocaine.”

A Herald investigation into a spike in drug use in New Zealand found the Government was “losing the fight” against organised crime groups, with ongoing efforts at the border being corrupted by the “accelerated growth of organised crime”.

Costello said the extra funding would increase the number of staff protecting the border as well as increasing Customs’ technological capability.

“In 2014, Customs seized 55kg of methamphetamine in the entire year,” she said.

“Last year Customs stopped, on average, 90kg of meth every week.

“In the past two years, Customs and its offshore partners stopped nearly 8.5 tonnes of meth from entering the country and harming New Zealanders.”

Funding will target three key areas in Customs

• Targeting those involved in lower-quantity, high-frequency drug smuggling, such as through international mail or airports. 
• Improving supply chain security and targeting the “trusted insiders” who use these links to help smuggle drugs. 
• Extending Customs presence overseas, with an additional liaison officer to support investigations and information sharing with global enforcement and border partners. 

The Customs funding comprises $21m in operating expenditure and $5.5m in capital funded through Budget 2025, plus an additional $8.2m from third-party levies and fees.