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They had been searching for John Henry Tully, 48, since the shooting at a Work and Income office in Ashburton Monday morning, The Irish Sun reported.
A balaclava (ski cap) clad man carrying a sawn-off shotgun entered the office and fired several shots before fleeing on a bike.
Tully was found on a rural property south east of Ashburton.
He was brought down by police dogs and sustained dog bites.
Police are still searching for the weapon, thought to be a sawn-off shotgun.
He was brought back to the Ashburton police station for a medical examination.
No charges have yet been laid.
Police warned the public to stay indoors and to not approach the man. Schools were also in lockdown.