Mr English revealed he told police in April last year that Mr Barclay had confided he left a dictaphone running in his electorate office and had recordings of former staff member Glenys Dickson criticising Mr Barclay.
Mr Barclay, who had publicly denied taping her and refused to co-operate with the police, will not seek re-election as Clutha-Southland MP in the September election.
Mr English said yesterday that during the dispute his advice to Mr Barclay had been that "that wasn't good behaviour''.
When a police investigation started it raised issues about possible offences and "I don't think [it] had occurred to anybody that there may be some potential offence'', Mr English said.
Once there was an investigation established the possibility of an offence became clearer.
"But earlier on, for those who weren't involved it was hard to know what exactly happened. There was no implication of behaviour that could be an offence.
"But nevertheless, whatever was part of the employment dispute, there was a police complaint [and] the information I had I made available to police.''
It is illegal to intentionally intercept private communications you are not a party to.
After a complaint by Mrs Dickson, police investigated for 10 months but found insufficient evidence for search warrants and to press charges. They are now reviewing the case.
On Tuesday night, Mr Barclay said he "accepted'' Mr English's police statement, and the next day announced he would stand down. He did not return a request for comment yesterday.
Yesterday, Mr English again rubbished cover-up claims by the Opposition, and said he had acted appropriately by informing former electorate chairman Stuart Davie and making his statement to police.
He confirmed he did so after being contacted by both parties and clarified that he had been asked to speak to police.
He had not reported the matter to police as he stated in Parliament on Wednesday.
Mr Barclay's Tuesday statement was the first time he confirmed he had said recordings were made. He denied he had recorded Mrs Dickson at the National Party's Gore branch AGM in February last year, according to audio published by Newsroom.
However, yesterday Mr English said delegates who reselected Mr Barclay were "in full knowledge of the circumstances''.
New Zealand First leader Winston Peters ramped up criticism of Mr English yesterday.
"He's got to go, Mr English. He's got to stand down, just like Mr Barclay. He misled the media. He misled the House [and] in every respect he is in serious breach of his responsibilities and duties.''
Despite calling for English's resignation, Mr Peters did not rule out going into coalition with National after the September 23 election.
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Comments
Ignorance of the law is not an excuse for anyone else. And, especially when you are a law-maker, an MP, it's your duty to be aware of the laws of the land. Added to which, there was more than a year that Barclay, English and co were well aware his actions were on murky legal ground - and they hushed it up. Only now that it's come out has anything been done about it - and it's too late for most members of the public, who aren't buying the spin.