KEY POINTS:
Multiple investigations have started to find out how confidential information on the Reserve Bank's limits for intervening in the currency market got past the Treasury, the Reserve Bank and advisers in the Minister of Finance's office to a newspaper.
The papers - compiled by the Treasury, double-checked by the Reserve Bank and sent to Michael Cullen's office for final checking and approval - included two figures relating to the financial limits the Reserve Bank could go to when intervening in a high or low currency, and the limit on its foreign exchange position.
The bank intervened in the currency last month, and the figures were included in a briefing to Dr Cullen about it which was given to the Sunday Star-Times under the Official Information Act.
The figures were described in the report as "highly confidential" but were not picked up until the newspaper saw them.
Dr Cullen's office indicated yesterday that the blame would lie primarily with the Treasury.
"Clearly, since it's sensitive material, Treasury will want to work out why steps weren't taken to better flag its sensitivity," a spokesman said.
But National leader John Key said it was astounding that Dr Cullen could have approved such material.
"You have to say there has been a major breakdown in the system. Michael Cullen has to answer how on Earth he signed off on the release of state secrets of the Reserve Bank."
A Treasury spokeswoman put the release down to "human error" but said an inquiry would take place today. Dr Cullen's office and the Reserve Bank were also investigating their roles.
She said there was confidence in the normal processes.
"This is the first time something like this has happened, but that doesn't mean we aren't going to look at it more clearly. My sense is this is human error, but we'll look at making sure it won't happen again."
Dr Cullen's spokesman said there was no alert to the nature of the information on the cover sheet from the Treasury, "which I suppose is why we didn't go through it with a fine-tooth comb".
"Our office also has the final say when these things go out, and we'll be looking at our role in the release as well. The mistake was originally at Treasury's end, since it's their material and they understand the importance of that material."
He said the papers arrived in Dr Cullen's office with a cover letter from the Treasury saying: "We discussed this OIA [Official Information Act] request with the Reserve Bank".
The Reserve Bank and Treasury agreed the reports were unlikely to lead to adverse comments.
Papers sought under the Official Information Act were usually checked by "several pairs of eyes, maybe two or three", in Dr Cullen's office before they were released.
The Sunday Star-Times agreed not to publish the figures, saying it was not in the public interest.
HOW IT HAPPENED
The figures were:
* Compiled by the Treasury.
* Double-checked by the Reserve Bank.
* Approved by Dr Cullen's office.
* Given to a newspaper under the Official Information Act.
* Now, the Treasury, Dr Cullen's office and the Reserve Bank are investigating their roles.
