The new boss of Treasury Secretary Gabriel Makhlouf's has responded to Budget hack allegations involving his new recruit.

After Makhlouf accused National of illegally hacking Budget details it was revealed the information was gained through failed security which allowed third parties to gain access through the Treasury website.

The controversy erupted shortly before it was announced Makhlouf had resigned from New Zealand Government as he had been appointed the next governor of the Central Bank of Ireland.

The Herald approached the office of Ireland's finance minister Paschal Donoho, who employed Makhlouf, for comment.


They were quick to distance themselves from the matter.

"This is a matter for the New Zealand Treasury," they said in a statement.

"We have no comment to make on a political matter in New Zealand."

This comes after National leader Simon Bridges blasted the Government and Treasury's "incompetent smear" job which wrongly suggested National had hacked Budget details.

"It shows deep dishonesty. Treasury has known since Tuesday exactly what happened and they covered it up to hide their incompetence. They have sat on a lie, calling the National Party criminal hackers and calling in the police," Bridges said.

Bridges' comments followed confirmation that sensitive Budget information made public by National was not hacked from the Treasury website but instead accessed legally.

Treasury had made changes on Tuesday and people in Treasury have told him that they knew, but had continued to "lie", Bridges said.

Bridges said Makhlouf - whose finished with the Treasury on June 27 to take the job in Ireland - must resign.


Makhlouf had compared the "hack" to an attack on a padlocked door, but Bridges said it was more like putting information in the street with a sign on it saying "free to a good home".

Bridges said Makhlouf was being dishonest because it was clear that Treasury knew what had happened on Tuesday.

He defended National staffers going looking for the information on the website, saying the only wrongful behaviour came from Makhlouf, Finance Minister Grant Robertson and Deputy Prime Minister Winston Peters.

Makhlouf's final day as Treasury Secretary was published when he was appointed to a second term in the role three years ago.