A man has U-turned on an allegation his cousin helped a father and step-son escape Southland in 2015

John and Mike Beckenridge were last seen near the Catlins, their car found in the sea below an 88-metre cliff, with no bodies.

Coroner Marcus Elliot called for a second hearing - after evidence from Oliver Watson came to light last year.

Watson alleged his cousin, Paul Watson, told him he helped the pair out and they're alive - during a phone call soon after the disappearance - which Paul Watson denies.

Oliver has retracted the allegation in the Christchurch District Court this morning.

He says Paul never said those things, but instead stated don't worry, they're alright.