The Coastguard says thousands of dollars and countless hours were wasted on a search when distress flares were set off in the Coromandel on Wednesday night.
Two vessels and a helicopter searched the area around Waimate Island, in response to three reports of flares being sighted.
Coastguard Northern Region duty officer Mark Fletcher said it is believed a beach party on the island set off the flares during New Year festivities.
Mr Fletcher said those at the beach party were questioned, but denied setting off the flares.
