Arthur Allan Thomas has slammed the Government for wasting taxpayers' money by launching a fresh inquiry into David Bain's bid for compensation.

The Waikato farmer, who was pardoned and compensated after being twice convicted for the 1970s murders of Jeanette and Harvey Crewe, said the review - announced by Justice Minister Amy Adams on Thursday - was a delay tactic. "[The Government] should have stuck with the first review. It's just costing the taxpayer too much money. The Government is hoping they will have an inquiry that decides David Bain gets nothing."

Bain was imprisoned in 1995 for the killing of five family members in Dunedin, but was freed after being found not guilty in a second trial in 2009.

"It should have been settled long ago. They need to stop mucking around and compensate him, end of story," said Thomas.

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A 2012 report by former Canadian Supreme Court Justice Ian Binnie said 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 Binnie had made several errors of law.

The new review will require Bain to prove his innocence - 21 years on from the murders - but it is unlikely new evidence aside from a police photograph showing an imprint from a bullet on Robin Bain's finger would be introduced. Dr Chris Gallavin, dean of law at Canterbury University said that evidence was "of relatively minor importance".

Long-time Bain supporter Joe Karam said Bain was holding up "as good as gold". "I don't think he's stressing out about it, it's just a blot on the nation's landscape that doesn't need to be rehashed over and over again as it is," he said. Bain has waited too long for a decision.