Todd Barclay case lawyers paid taxpayer cash

Taxpayer money from the former prime minister's leader's fund was used to pay for legal advice as well as top up the settlement in the Todd Barclay case, it's been revealed.

The news comes as opposition parties seized on new allegations about the contents of the alleged recordings. Source: 1 NEWS

The settlement was paid to former electorate office staffer Glenys Dickson to settle an employment dispute with Clutha-Southland MP Todd Barclay.

Most of it was paid by her employer, the Parliamentary Service, but had to be topped up from former prime minister John Key's leader's fund.

The amount isn't known but New Zealand First managed to find out, through the Official Information Act, that $2609 was used to pay lawyers.

The scandal forced the MP to announce he wouldn't stand for re-election in September.

Police have re-opened an investigation into allegations that he secretly recorded conversations of staff in his Gore electorate office where Ms Dickson was employed.