Armed police surround vehicle

Tupai Tupai and Preet Singh had a quiet night at work on Saturday night but 20m away it was a different story.

The two men stood outside their workplace, Ford Block Wholesaler Liquor Store, watching armed police surround a car on Ford Rd.

"I saw police point a gun at the red car," Mr Tupai said.

Mr Singh said he saw four armed police surround the car and order the men inside to get out.

Two 14-year-olds Wiremu Raupita and Tuau Takao were in a nearby park when Wiremu said he heard gunshots.

"We just heard all this banging."

The pair ran up the road and "that's when we saw all the cops down here" Wiremu said.

"A cop was telling us they might [the people in the car] have drugs to make P."

Other residents stood outside their homes and groups congregated outside the shops with police and emergency services having to stop some people walking through the cordon.

Mr Singh said while he was concerned about firearms in the area he did not fear for his safety.

Detective Sergeant Garry Hawkins of the Rotorua police said events started early in the evening at a Pullar Pl property where a man who lived there allegedly fired a shot in the air from a single barrelled shotgun.

The man went to a family member's Bellingham Cres home where it appeared he may have fired another shot. The man drove off with an associate in the car and was stopped at a police cordon near the Ford Rd shops.

"The armed offenders squad was called to the incident and stopped the vehicle and got the occupants out at gunpoint. We found the firearm in the car," Mr Hawkins said.

Police could see chemicals in the back of the car and initially feared they could be dangerous, possibly used for manufacturing methamphetamine.

The Rotorua Fire Service and St John Ambulance were called.

Two firefighters wearing high level protective suits searched the car and found chemicals allegedly used for manufacturing cannabis oil.

The Malfroy Rd end of Ford Rd was closed for about three hours while police investigated and spoke to residents. Police were back at the Pullar Pl property carrying out further investigations yesterday.

Two men in their 20s have been charged. One is to appear in the Rotorua District Court today charged with manufacturing cannabis oil, cultivating cannabis, unlawfully discharging a firearm and unlawfully possessing a firearm. The other has been granted police bail an is to appear in court on Wednesday charged with unlawfully possessing a firearm.

Meanwhile, a woman in her 20s and her 7-year-old brother were threatened then attacked by two youths wielding weapons outside the fish and chip shop in the Te Ngae shopping centre.

The woman, who did not want to be named, said the two youths aged about 16, started abusing her brother and calling him names at about 2.40pm yesterday When the woman told them to go away the two youths started to abuse her and produced a flick knife and golf club.

The woman got into her car with her brother and drove away. They were chased through the shopping centre where their car was hit by the golf club and scratched by a knife. The woman said she was not worried until one of the youths produced a knife. She said it was a disgusting and cowardly attack especially since they were picking on a 7-year-old. "They just started swearing at my little brother. When one of them pulled the knife we got pretty worried and took off," she said.

The two attackers, who are still on the run, are described as Maori wearing Mongrel Mob insignia and shouting Mongrel Mob slogans.