The debate continues over whether David Bain should be paid compensation for spending 13 years in jail for killing his family before being acquitted of the murders.

The parties involved are now considering the latest report into the case for compensation.

Prime Minister John Key had denied drumming up a report to avoid paying compensation.

Mr Key said the report is now being considered by Mr Bain's lawyers and Crown Law.


"They're going through the sort of natural justice process of discussing that, and then the next step is to work out what happens next, and there are a number of options there.

"At some point the Minister [Justice Minister Amy Adams] who has sole responsibility will come back to cabinet and make a recommendation, either that the compensation should be paid or not paid."