New Zealand shooter kills two women in unemployment office

A balaclava-clad gunman who walked into a New Zealand unemployment office and shot dead two women, is on the loose.

A third person was seriously wounded before the gunman escaped either on foot or on a bike.

New Zealand police have named 48-year-old John Henry Tully as a "person of interest" following the shooting, which happened about 10am on Monday in Ashburton, 86km south of Christchurch.

Armed police and a helicopter are combing the area and Canterbury district commander Superintendent Gary Knowles has warned people not to approach the man.

He was wearing camouflage clothing and a balaclava and is believed to be armed and dangerous.

Supt Knowles could not confirm whether the two people who were killed were WINZ employees.

However, a witness who was in the WINZ building at the time, has told the Ashburton Guardian that a man wearing a black balaclava entered the office and shot two women, both believed to be WINZ staff members.

"It was incredibly loud, I could feel the air whoosh past my head," the newspaper quoted him as saying.

Media are reporting further shots have been heard since down by the Ashburton River.

The injured person is in a serious but stable condition in hospital.

Ministry of Social Development chief executive Brendan Boyle says he and his staff are shocked by the shooting.

"We will be there for our colleagues to support them as they come to terms with what has happened."

All Ministry of Social Development offices in Ashburton, Timaru and Christchurch have been closed until further notice.

Last month Tully was quoted in a series of Guardian newspaper articles about his experience with homelessness. The 48-year-old revealed he once had a successful career in the Australian mining industry but had "come home to die" from a skin disease that tightened his joints and limited his movement.