Both Alf and his wife Melissa have returned home to New Zealand after being homesick. After a delay in customs that irritates Alf, the two return to their old home which has just had the utilities switched back on. As they arrive the house is destroyed in a gas explosion. Paranoid Alf goes to report his suspicions that the explosion was deliberate to his nemesis on the New Zealand Police, Inspector Evans. Evans thinks Alf is upset and imagining things. Alf later survives a car crash where his brakes were cut, however an examination of Alf's car lead Evans to believe that shrapnel from the house explosion cut the brake line.
Alf and Melissa escape to a country house where Alf's increasing paranoia leads him to establish a line of tripwires around the property that drop noise making kitchen utensils. Alf also arms himself with a small bore rabbit hunting rifle. They are joined by a hunter who eschews shooting bunnies and instead shoots at Lisa until Alf kills him with his rifle. Evans still thinks Alf is paranoid but is mystified as the unzeroed sights on Alf's weapon and its small calibre makes Alf's one shot one kill of the hunter a remote possibility. Everyone finally realises Alf is right when a helicopter drops two assassins with fully automatic weapons who destroy the property that leads to a cross country chase across the Land of the Long White Cloud featuring nonstop car chases, assassination attempts and continuous references to 007.
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