Budget 2025 Boosts Customs Funding to Combat Drug Smuggling and Organised Crime

New Zealand’s Customs agency is set to receive a significant injection of funding under Budget 2025 to combat rising threats from transnational and organised crime. In an announcement today, Customs Minister Casey Costello revealed that the Government will allocate an additional $35 million over four years to bolster the country’s frontline defenses against drug smuggling and international criminal networks.

The funding commitment comes at a critical time, as New Zealand faces increasing pressure from organised crime groups exploiting the Pacific for drug trafficking operations. With some of the world’s highest street prices for illicit substances such as methamphetamine and cocaine, New Zealand remains a highly attractive market for drug syndicates.

A Growing Threat from Transnational Criminal Networks

“Customs is doing a great job stopping illicit drugs entering the country, but New Zealand is increasingly being targeted by organised crime groups,” said Minister Costello. “The Government is committed to ensuring law and order, so it is investing in the tools and capacity agencies need to meet growing challenges.”

Highlighting the scale of the problem, Minister Costello noted that in 2014, Customs seized just 55 kilograms of methamphetamine across the entire year. In contrast, by 2024 the agency was intercepting an average of 90 kilograms per week. In the past two years alone, New Zealand Customs and its international partners have prevented nearly 8.5 tonnes of methamphetamine from reaching the country.

“These numbers underscore the scale of what we’re dealing with and the urgency of continued investment,” said Minister Costello.

Key Focus Areas for the New Funding

The $35 million investment includes $21 million in operating expenditure, $5.5 million in capital expenditure, and $8.2 million funded through third-party levies and fees. This funding will support up to 60 new roles across various critical areas including border operations, investigations, prosecutions, and intelligence gathering.

Three key focus areas have been identified:

1. Tackling High-Frequency, Low-Quantity Smuggling: Criminals are increasingly using international mail systems and air passenger routes to smuggle smaller amounts of drugs more frequently. The additional funding will help Customs scale up investigations and prosecution efforts in this area.

2. Improving Supply Chain Integrity: Customs will increase efforts to disrupt “trusted insiders” – individuals within logistics and shipping chains who collaborate with organised criminals to smuggle contraband. Investment in supply chain security technology and processes will be a priority.

3. Enhancing International Collaboration: A new offshore liaison officer will be deployed to strengthen intelligence sharing and joint enforcement operations with global counterparts. This expanded overseas presence is vital for intercepting drugs before they reach New Zealand shores.

Building Technology and Human Capital

Alongside increased personnel, the funding will also go toward enhancing Customs’ technological capabilities. From scanning and detection systems to data analytics tools for threat identification, the investment will allow New Zealand to stay ahead of the rapidly evolving tactics used by criminal syndicates.

Minister Costello emphasized that the expansion of Customs’ workforce will be crucial. “This new funding will provide the people power and investigative capacity needed to track, intercept, and bring to justice those who endanger our communities through drug trafficking and organised crime,” she said.

A Government Committed to Law and Order

This announcement forms part of the Government’s broader commitment to strengthen public safety and law enforcement as part of its Budget 2025 agenda. With global criminal networks increasingly targeting the Pacific region, the Government aims to ensure that New Zealand remains resilient and equipped to combat these external threats.

Minister Costello concluded, “We know what works to stop the threat from organized crime and harm from drugs. Budget 2025 backs our Customs officers with the tools they need to do their job even better.”