UPDATE 2.57pm: A police spokesperson said police spoke to two young men at the scene and confiscated a plastic BB gun.
The gun had been fired into the air but there had been no injuries.
The young men had been spoken to by police and given a stern warning.
2.40pm:
Two male youths seen in the possession of two hand guns were taken away in handcuffs by police.
A witness who declined to be named told the Bay of Plenty Times she had been on a smoko break outside the Westpac Building on the Strand when she saw two men, each with "a hand gun or pistol", and she called 111.