Prime minister Bill English has faced the press to answer questions after MP Todd Barclay resigned this afternoon

Prime Minister Bill English claims the fall out from Todd Barclay's secret recordings hasn't damaged the National Party.

Barclay, Clutha-Southland's MP, has announced he will stand down at September's election. The embattled rookie MP has been under pressure to step aside after revelations he secretly taped a staff member in his electorate office.

The 27-year-old has repeatedly told media he didn't make a recording but his fate was sealed on Tuesday when English produced his police statement saying Barclay had told him he'd recorded his staffer, Glenys Dickson.

Todd Barclay has been under fire since details of the recordings were revealed.

Opposition leaders have accused the National Party, in particular English, of a "cover-up" and Labour leader Andrew Little has slammed police for not pursuing an investigation into Barclay.

The Prime Minister told reporters the issue "has been dealt with pretty decisively, partly because of the decision by Mr Barclay to stand down".

​READ MORE:

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ROBERT KITCHIN/FAIRFAX NZ Prime minister Bill English faced the press to answer questions after MP Todd Barclay resigned.

"He's made a difficult decision but it is the right one," English said. "We can get back to focusing on the issues which matter to the country."

English said a number of people, including senior National MPs, had spoken with Barclay but the prime minister had not had a conversation with him about his decision to stand aside.

"He's outlined the reasons he's resigned. It's been a very difficult decision for a young man to make and it's a shame it's come to this."

ROBERT KITCHIN/FAIRFAX NZ English said he had not had a conversation with Barclay about his decision to stand aside.

He said the fallout wasn't damaging to the party because "these sorts of issues arise commonly in politics" and it had been dealt with quickly.

"My main regret here is that people I know well fell out so badly and it's been an ongoing problem in different forms."

English was the Clutha-Southland MP for 18 years until he vacated the seat making room for Barclay's selection in 2014.

Mary-Jo Tohill Todd Barclay said being elected as an MP had been "the proudest moment of my life".

Barclay wasn't in the House on Wednesday afternoon but was seen driving away from Parliament shortly after English addressed media.

WAS IT A COVER-UP?

Little, Green Party co-leader James Shaw and NZ First leader Winston Peters have all pointed to a "cover up".

NZN VIDEO Todd Barclay did the honorable thing: James Shaw

"I think that the prime mInister should have asked him to stand down as a member of Parliament when he discovered what he'd done, rather than to cover it up," Shaw said.

The ramifications for the National Party were "serious", said Peters.

"They were all involved in a cover up where taxpayers' money was used to get a confidential settlement," he said.

NZN VIDEO Most clean political scandal I've seen in a long time: Winston Peters

Little said the National Party, and probably others, were involved in doing "everything they could to conceal it from the public".

A police investigation into whether Barclay recorded Dickson was closed when the MP refused to cooperate and there was insufficient evidence to continue.

Little said the police got it wrong and they didn't have to wait to interview Barclay.

NZN VIDEO Andrew Little: New Zealanders now face the question; can we trust Bill English?

"I don't accept the excuse the police have given that their inability to interview Todd Barclay was the reason they couldn't take it any further.

"From the information that's now available, I don't accept the police didn't have enough to launch prosecution," he said.

United Future leader Peter Dunne said the whole thing was "sad" for Barclay but there couldn't have been any other outcome.

"I've always been a strong supporter of young people being involved in politics - I hope this doesn't tarnish that," he said.

WHO WAS IN BARCLAY'S EAR?

A visibly upset Sarah Dowie, who has been at Barclay's side over the last few days, said she would miss him as they had worked closely together on Southland initiatives since entering Parliament together in 2014.

NICOLE JOHNSTONE/FAIRFAX NZ Todd Barclay and John Key in happier times.

"It was the right decision for Todd - he's a young man with a bright future. As he said in his statement he's putting the party ahead of his employment dispute and I wish him all the best.

"He's a really hard-working MP but it's time for him to move on," she said.

Deputy Prime Minister Paula Bennett said she had spoken with Barclay several times in the last few days while "he's been going through a really hard time reflecting what his next moves were".

NZN VIDEO What happened to Todd was not due to lack of support from the National Party earlier on: Paula Bennett

She said his decision to stand down was the "right one" and it was a "really sad day ... to see someone who is young with a big career ahead of him" have to resign.

Bennett dismissed suggestions Barclay hadn't received enough support dealing with the issues in his electorate office.

"I think he's had a lot of support, we've got quite a good programme in how we wrap-around new MPs. I feel quite confident in the support we've given him over the last three years."

Revenue Minister Judith Collins, who publicly supported Barclay's selection in Clutha-Southland, wouldn't reveal what she'd advised the MP over recent days other than to say she'd "supported" him.

"I just think it's a sad day but these things happen."

National MP Chris Bishop, who entered Parliament in 2014 alongside Barclay, said it was Barclay's "big dream to be an MP".

"Now he's made the decision to step down from that role so it's a sad day for him but he's made that decision."

BARCLAY MAKES DECISION TO GO

In a statement released on Wednesday, Barclay confirmed he would leave Parliament at the end of this term and his seat would be re-opened for selection.

"I got into politics because I was inspired by the people I worked for, Bill English, Gerry Brownlee and Hekia Parata. I wanted the opportunity to make my contribution too," Barclay said.

"It was the proudest moment of my life to have been elected the MP for Clutha-Southland. I have been privileged to serve the people of Clutha-Southland's interests and have thrown my heart and soul into working for them.

"I have loved getting to know the 34 communities of this electorate and the people and their concerns have been top of my mind for the past three years. I'm proud of the work I have done, and grateful to have worked with so many passionate and amazing people."

Barclay paid tribute to his National Party friends and colleagues and said he didn't want the "issues that are important to Clutha-Southland and all of New Zealand to be distracted by an employment dispute".

"This has been a hard decision to make, but it is in the best interests of our government and the National Party, and I wish the prime minister and our team all the best for the General Election," he said.

There would be no media stand-up and Barclay wouldn't be making any further comment.

POLICE RE-OPEN INVESTIGATION

Assistant Commissioner Richard Chambers confirmed police are "assessing the information that has been discussed publicly in recent days in relation to any impact on the findings of the original Todd Barclay inquiry".

Their investigation into Barclay ended after the rookie MP refused to co-operate with police and there was inconclusive evidence to pursue it further.

Barclay initially told media he would co-operate with the police but after seeking advice from his lawyers he ended up choosing not to.

That was despite Prime Minister Bill English providing a statement to police confirming Barclay had told him he'd recorded a staff member in his office.