"It looked like a declaration of death," Fallon told the DRS with Martin Devlin.
"I wondered what the young boy was on about. I'm looking at the statement and he's got to realise that we've always been under funded and under resourced. We've had to create our own football environment and not moan. That didn't mean we didn't aim for standards, but we accepted where we were at. But we didn't come across as a winging Pom, simple as that. Herbert got on with it, Adshead, Herbert, myself. We just got on with the job.
"When you're saying things like that it's as if he can't cope and he didn't think it was going to be like this. With his resources he's only had one win in six games against moderate opposition. Maybe the pressure has got to the little lad I don't know. But he's not as experienced as people who have held that position in the past. But he seems a little lost at the moment."
Fallon, who was the assistant coach when the All Whites qualified for the 1982 World Cup before taking sole charge for 52 games, said Hudson should vacate his post as All Whites coach if he has lost confidence in New Zealand Football.
"The part that concerned me was that he said it was impossible to build a team. Now that does worry me. Because if that's how he feels about it he should grab his knapsack and say he's off. If he doesn't think he can build a team he should pass it and give it to someone who thinks they can.
"I'm very surprised that he said the football and culture is all wrong. Because you're not just knocking the players, you're knocking the coaches. You're knocking the Declan Edge's the Micky Groom's and the Wynton Rufer's. All the people that have worked with the academies and brought the players through, you're saying they've not got the answers, I'm 34 and I've got all the answers."
"I hear the CEO is away on holiday, I don't think he'll be having a comfortable one."
But New Zealand under 20 coach Danny Hay said he was 'not surprised' by Hudson's comments and the outburst came from pure frustration that had been bubbling away for some time.
"He's come out here with expectations around how much the All Whites were going to play and the professionalism of players that he was going to be working with," Hay told the DRS with Martin Devlin. "I think he's been frustrated on both accounts. When your national team coach and you're not playing enough and you're not seeing your players, it's a difficult one for him.
"When you go and employ a coach, one that I think is truly outstanding, he lives and breathes, eats and sleeps football and is the most prepared coach I've ever seen, when you bring him on full time you are making some sort of commitment to the national team program and I don't think that's really been sent through and that's why he's frustrated.
"Nobody likes to hear the truth and it can be difficult at times but on both counts, talking about young players and All Whites getting games, he's hit the nail on the head. And there's no quick fix but I think we need to be more proactive in trying to rectify that. But he's right, we're living in deludedville.
"I would be extremely disappointed if a negative view of this was taken by New Zealand Football. All he's done is tried to make some valid and realistic points and get that across so we can make improvements."
