Mr Haig was convicted in 1995 for the murder of crewman Mark Roderique in Jackson Bay on his tuna-fishing boat Antares in 1994.
He spent 10 years in prison before his conviction was quashed by the Court of Appeal.
Yesterday, Justice Minister Simon Power announced he had declined Mr Haig's application after accepting the finding of an investigation by Robert Fisher QC that it was more probable, than not, that Mr Haig participated in Mr Roderique's murder, together with his nephew, David Hogan, who was also a crew member.
Mr Haig, now a refrigeration engineer in Christchurch, said the news was disappointing, but not surprising.
"It's their final thumbing of their nose at me, really. I'm worn out by it all."
He found it hard to believe they still thought he was involved in the murder, given his conviction was quashed.
But it would never end without an investigation of David Hogan and the death of witness Anton Sherlock, Mr Haig said.
"It's more of the same; the justice system not being fair and straight up."
If the justice system had dealt properly with his petition in 1999, rather than taking six years, he would most likely have been acquitted and received compensation, he said.
"It's been 10 years since that petition was filed. It's just too late."
His lawyer, Jonathan Eaton, would spend the next two weeks looking at what options were now available to him.
One possible avenue was to challenge Mr Power's decision through a High Court judicial review, Mr Eaton said.
Mr Haig applied for compensation in November 2006, and the claim was referred to Mr Fisher for assessment in September 2007 by then-justice minister Mark Burton.
"In this case, Mr Fisher had to establish that it was more likely than not that Mr Haig was not involved in the murder of Mr Roderique, either alone or as a party," Mr Power said.
His 189-page report detailed competing versions of what happened and the cover-up of the murder.
Both Mr Hogan and Mr Haig had motive and opportunity to kill Mr Roderique, Mr Fisher said.
Mr Haig was in financial difficulties, had tried paua poaching, and after a falling-out with Mr Roderique was worried he would go to the authorities.
Mr Fisher concluded the men decided to kill Mr Roderique, dispose of his body and then cover up the deed.
"I am satisfied that Mr Haig has failed to show that on the balance of probabilities he is innocent of the crime with which he was charged. If anything the inquiry suggests the reverse."
In quashing Mr Haig's conviction in 2006, the Court of Appeal ruled Mr Haig could not be prosecuted again and Mr Fisher's advice did not change this.
-Additional reporting doe by NZPA
