The Government was initially going to exclude dealers from its buyback scheme because they could be reimbursed for their soon-to-be-illegal stock from overseas suppliers.
But this afternoon Police Minister Stuart Nash said compensation for dealers was back on the table, as were a number of issues raised by gun lobbyists including loss of business or income.
The cost of the buyback scheme, if it included such losses, could be up to $1 billion, according to the Council of Licenced Firearms Owners.
The only people Nash singled out to be denied compensation were those who bought MSSAs or assault rifles after Prime Minister Jacinda Ardern announced the ban on March 21.
"The initial indication was that dealers would not be part of the buyback scheme. The dealers are free to write a submission to the [select committee] on this, and we'll see what comes out of that," Nash said.
"It's got to be fair. It's got to be reasonable. We don't want [firearms] licence holders who bought these guns in good faith to be out of pocket."
Even under the moratorium, a person with an E-category licence could still buy an MSSA, but Nash said doing so would be pointless.
"You'd have to be mad to go out and buy one of these weapons at the moment with an E-Cat licence, because it will have to registered and you're not going to be compensated for it."
In its report to the Government on the gun reform bill, police addressed a number of issues in the buyback scheme including no plan to reimburse the $204 cost of E-category licences, which some 7500 people have purchased.
It also noted that dealers would likely lose out, even if overseas suppliers bought back their stock.
"In this case the dealer is likely to lose out on the shipping costs to return the items, but also may not be able to return the stock for the same price as it was bought. Suppliers may also choose not to accept a return of stock," the report said.
"It is possible that the bill would impact the viability of some firearms businesses."
Earlier today Nash dismissed an offer from the National Party to include Firearms Prohibition Orders in the current bill before Parliament.
Such orders would empower police to go after gangs that have publicly said they would not hand over their guns to police.
"A Firearms Prohibition Order ... will widen the powers available to Police to search the homes and cars of serious, violent gang members for firearms," National's police spokesman Chris Bishop said.
Nash said such orders could be looked at in the Government's next stage of changes to gun law reforms, expected later this year.
"Chris Bishop didn't mention this in his speech (at the bill's first reading) yesterday. Police can actually go in and conduct searches anywhere they think there are illegal firearms.
"This is not a time for grandstanding. We've come together in consensus, and I hope Mr Bishop isn't grandstanding."
