National MP Todd Barclay is under building pressure to step down after a bombshell admission by Prime Minister Bill English showed Barclay had lied - but he appears to be digging-in.
The Clutha-Southland MP read a short statement to media last night in which he confirmed that a statement made by English to police was correct, and he apologised for making "misleading" comments earlier in the day.
Flanked by National's whip Jami-Lee Ross and Invercargill MP Sarah Dowie, Barclay walked away before answering questions.
Earlier, Barclay had denied making secret recordings or telling English of them - only for English to reveal he informed police that Barclay had told him he left a dictaphone running in his electorate office and had recordings of his staff.
In a further development last night, Newstalk ZB reported that the recordings may have been made by CCTV rather than a dictaphone. A private security firm was alleged to have put cameras into Barclay's office, at his request, to observe a staff member. Barclay could not be reached for comment last night.
English made the admission about his statement to police after having his credibility as Prime Minister called into question following Newsroom's publication of text messages he sent about Barclay.
In response, the Prime Minister initially refused to discuss what he told police, who were investigating claims by Barclay's former electorate agent Glenys Dickson that he secretly recorded her conversations.
But within four hours that position was reversed and English revealed what he told police - Barclay had told him he had left a dictaphone running in his electorate office and had recordings of his staff.
With only 95 days until the election, Labour leader Andrew Little said English's leadership had been found lacking and he must now compel Barclay to front up to police. New Zealand First leader Winston Peters said "there has been a cover-up all the way to the Prime Minister's office".
Former electorate chairman Stuart Davie contacted English last year asking him about claims Barclay had made secret recordings of Dickson, during an ongoing employment dispute.
Dickson had previously worked for English, who held Barclay's Clutha-Southland seat for 18 years before becoming a list MP.
English's February 21 text to Davie read: "He left a dictaphone running that picked up all conversations in the office. Just the office end of phone conversations. The settlement was larger than normal because of the privacy breach."
The settlement was paid from then Prime Minister John Key's leader's fund, which is taxpayer money.
It is illegal to intentionally intercept by means of an interception device private communications you are not party to. Police investigated for 10 months after a complaint from Dickson, but concluded there was insufficient evidence after Barclay declined to be interviewed.
After Newsroom published the story yesterday morning, English confirmed the text message was his, but repeatedly said he could not recall who told him about the alleged recording.
A few metres away and facing his own media huddle, Barclay categorically stated he had not told the Prime Minister about any recording. Asked directly if he used a dictaphone to record Dickson, he said, "I've seen the allegations and I totally refute them".
That afternoon English's office released the police statement in which he tells an officer: "I had a conversation with him regarding Glenys Dickson leaving his office and he said to me that he had recordings of her criticising him... he said he had just left a dictaphone on."
English was asked last year if he knew the reasons for resignations, or if he had spoken to the people who had resigned, and said no: "These are issues between them and their MP, I keep pretty clear of the electorate. It's not my job to run it."
Those statements were made after English had texted Davie. Asked if he had been upfront enough, English yesterday said he had told police of Barclay's comments, and they "had the opportunity to investigate all aspects of the allegations".
Little said English's grasp of truth had been found lacking.
"It's now a matter of the Prime Minister's leadership, integrity and credibility. He must tell Mr Barclay that he has to front-up to the police and tell the truth."
Peters said Barclay could not remain an MP, and English had not been truthful.
"More significantly, why the police did not complete that inquiry into an illegal or criminal act, I don't know."
The secret recording allegation led to division within the previously united Clutha-Southland National Party, which has a membership said to be 1500-strong. It led to Barclay facing - and surviving - a selection challenge from Simon Flood, a former Merrill Lynch banker.
Flood told the Otago Daily Times yesterday he wanted to "stay on the sidelines" at this stage: "I think it is better for me to say nothing at this stage and let the process take its course."
Yesterday Newsroom reported that National's rules committee is understood to be investigating allegations of improper votes and "delegate stacking" involving Barclay's family and supporters.
English's statement and copies of his text exchange were redacted when police released investigation files to the Herald this year.
Police assistant commissioner Richard Chambers said redactions were made because of privacy considerations, given the case never proceeded to prosecution.
"Police consulted those individuals who provided statements as part of the investigation. The redacted file that was released took into account the views of the individuals consulted."
Chambers said there was not enough evidence to seek search warrants during the Barclay investigation.
• 2014: Barclay wins the Clutha-Southland electorate aged just 24, taking over from English.
• 2016: Police investigate allegations Barclay secretly recorded staff in his office. Barclay declines to be interviewed. No charges are laid because of insufficient evidence.
• 2016, February: English texts electorate chairman saying Barclay told him he left a dictaphone running in the office and recorded conversations, and a settlement was paid out to a staff member.
• 2016, December: Barclay wins selection to stand for the electorate again.
• Yesterday: Newsroom publishes English's text message. He first says he can't recall who told him about the recording, but later in the day confirms he told police it was Barclay. No resignation from Barclay, despite him accepting English's statement was correct.
They allege the Crown ignored Treaty obligations by not engaging with them.