Twenty-six people have been rescued from Foveaux Strait after the fishing boat Torea struck rocks off Green Island, off Southland, about 12.30pm on Friday.
A Rescue Co-ordination Centre spokesperson says the skipper made the decision to try to ground the boat on nearby Ruapuke Island, allowing the 23 passengers and three crew members to get ashore.
Two Coastguard boats from Bluff and Riverton, and three winch-capable helicopters from Dunedin and Te Anau went to the scene.
The Bluff Coastguard boat ferried the passengers and crew back to Bluff.
Diesel leak fears
Southland Regional Council says the Torea could have three-thousand litres of diesel aboard.
On-scene commander Dallas Bradley says an oil spill response team is assessing the risk from the diesel.
Crews of other boats at the scene report no oil has leaked from the Torea, but an aerial photograph shows a small sheen of oil off the port side, likely to have come from a fuel tank's air vent.
Mr Bradley says he will be talking to the boat's owner and insurance company about salvage plans.
He says the priority is to prevent any diesel spilling from the vessel.
The Torea was built in 1940 and is one of New Zealand's oldest commercial fishing boats.
