David Bain's long fight for compensation will start afresh with all previous advice put aside, Government has confirmed.
Justice Minister Amy Adams said this afternoon Cabinet did not have enough information to reach a decision on a potential payout for Mr Bain, who spent 13 years in prison before being found not guilty of murder in a retrial.
Mr Bain was imprisoned in 1995 after being convicted for killing five family members in Dunedin, but was freed after being found not guilty in a second trial in 2009.
A 2012 report by former Canadian Supreme Court Justice Ian Binnie said Mr Bain was probably innocent and should receive compensation.
But a peer review of his report by Robert Fisher QC, sought by then-minister Judith Collins, maintained Justice Binnie had made several errors of law.
Ms Adams said: "Given these events, it's my view that Cabinet doesn't have the information in front of it on which it could reasonably reach a decision."
"For that reason, the advice of both Justice Binnie and Dr Fisher will be set aside and I will appoint a new inquirer to conduct a fresh inquiry into Mr Bain's claim."
Based on previous awards, Bain could be entitled to at least $2 million if Cabinet approves compensation.
Ms Adams said it was important that the final decision on Mr Bain's case was "durable" and withstood the close scrutiny the case attracted.
"The New Zealand public rightly expects the Government to make a decision with the full set of facts and reliable advice in front of them.
"A fresh look will safeguard the integrity of the process and reassure the public that Cabinet will act on the best advice available.
"Despite the further delay, conducting a fresh inquiry is the best approach in the circumstances and enables Mr Bain's claim to be progressed on a proper and robust basis."
A drawn-out battle
May 1995: David Bain convicted of killing five family members in Dunedin.
June 2009: Conviction quashed in a retrial after Privy Council appeal.
Nov 2011: Canadian judge Ian Binnie investigates compensation issue.
Aug 2012: Mr Binnie concludes Bain should be compensated. Justice Minister Judith Collins seeks a peer review from Robert Fisher QC.
Dec 2012: Fisher review says Justice Binnie's report was inaccurate and cannot be used.
July 2013: Bain's legal team seek judicial review of Ms Collins' handling of compensation claim.
Sep 2014: Amy Adams is made Justice Minister.
Jan 2015: Judicial review discontinued after confidential settlement between Govt and Mr Bain's team.
Feb 2015: Ms Adams confirms the compensation process will start afresh, with all previous advice put aside.
