Ministers are yet to make a decision on David Bain's claim for compensation for wrongful conviction and imprisonment over the 1994 murder of his family.

Justice Minister Judith Collins said today she had "updated" her Cabinet colleagues on the application for compensation, but said no action was taken on the next steps in the case.

A $400,00 report on the claim was shelved late last year after Collins raised concerns about its conclusions.

The report's author, retired Canadian judge Ian Binnie, found Bain should receive a payout for the 13 years he spent in jail for the murder of five family members in 1994.

Collins said the report would not stand up to public and legal scrutiny and ordered a review by Robert Fisher QC.

In a new report, costing $100,000, Fisher backed Collins' concerns.

The episode sparked an ugly public spat between Collins and Binnie.

Because Bain is not automatically entitled to compensation, Cabinet must now decide on the next steps. It may decide to commission a new report.

"Cabinet has not made any decision on the next steps for the application," Collins said.

"As Mr Bain's application falls outside the Cabinet guidelines, Mr Bain has no entitlement to compensation.

"Any decision regarding compensation is entirely at Cabinet's discretion."

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