Justice Minister Amy Adams said today that retired judge Ian Callinan had found that Bain was not innocent beyond reasonable doubt.
Speaking to the New Zealand Herald at his Christchurch home today, Bain professed his innocence.
"Quite frankly, the only thing I have to say is that Mr Callinan, Ms Adams and everybody that's been involved in the case to date have got it wrong: I am innocent. That will always be my only comment and there's nothing else I have to say on the matter," Bain said.
He refused to answer any more questions.
- Scroll down to see a video of today's press conference
As a result of the decision, the Government will not be making an apology or compensating Bain for his time spent in prison.
However, Adams said that Bain's team had promised to make a legal challenge to Callinan's report.
In an unusual move, the Government has agreed to make an ex gratia payment to Bain in the interests of bringing closure to the long-running claim. A full and final payment of $925,000 has been accepted by Bain's team.
In a press conference at the Beehive today, Adams stressed that the payment was not compensation, and had been offered solely to avoid further litigation and costs to the Crown.
In announcing the decision, Adams said the Bain case was one of the most complex and unique cases ever witnessed in this country.
Even after the latest report, New Zealanders were likely to be divided about the case, she said. But it was in the interests of everyone to bring some closure to the claim, given that the murders occurred 22 years ago.
Adams said Bain's legal team had made it absolutely clear they intended to legally challenge Callinan's report, leading to considerable further cost and delay in this matter.
"While the Crown is confident in the strength of its position in any such review, it's clearly desirable to bring finality to this case and avoid the cost and uncertainty of further proceedings," she said,
"In my view, no one benefits from this matter continuing to drag on. In light of that, the Crown has agreed to make an ex gratia payment of $925,000 in recognition of the time involved and expenses incurred by Mr Bain during the compensation process, and the desirability of avoiding further litigation."
"This resolution is a pragmatic one that recognises the unique circumstances of this case and a desire on all sides to bring this matter to a close," Adams said.
"While many New Zealanders hold strong views on the case, the complexities of the evidence and the opinions that evidence has given rise to, are such that those views are likely to continue to be firmly held without clear resolution.
"While the issue has divided opinion in New Zealand, I am satisfied that the matter has at least now been concluded."
The ex gratia payment for Bain is likely to stir further debate about another compensation case, for Teina Pora.
Pora was last month found innocent on the balance of probabilities and was awarded $2.5 million for wrongfully spending 20 years in prison. His legal team is now challenging that payout, saying it should have been adjusted for inflation.
Adams defended the decision to award Bain $925,000 despite his not meeting the threshold for innocence, saying that the money reflected the time, cost, and "desirability" of avoiding future legal challenges.
The Herald revealed in February that Callinan had found that Bain was not innocent beyond reasonable doubt.
But the final decision on compensation rested with the Cabinet.
It is the latest chapter in a long-running battle between Bain and the Government.
A 2012 report by former Canadian Supreme Court Justice Ian Binnie recommended compensation based on the view that Bain was probably innocent - not innocent beyond reasonable doubt.
Judith Collins, the Justice Minister at the time, ordered a peer review of the report by QC Robert Fisher, which found that Binnie made several errors of law.
Bain's legal team sought a judicial review of Collins' handling of the claim, which was later discontinued after a confidential settlement.
After Adams took over the justice portfolio, she launched a fresh inquiry, led by Callinan, and said all previous advice on the matter would be set aside.
Bain was convicted of murdering his parents and three siblings in June 1994. He served 13 years in prison before the Privy Council quashed his convictions and he was acquitted in a retrial in 2009.
