The Auditor-General has ruled out investigating the process followed to appoint Ian Fletcher as director of the Government's spy agency.
Labour Party deputy leader Grant Robertson last week asked the Auditor-General to investigate the process in which Prime Minister John Key rang Mr Fletcher to ask him to apply for the job at the Government Communications Security Bureau.
In a statement on Thursday, the Office of the Auditor-General said Mr Key has responsibility for the appointment and, unlike other chief executive appointments, there is no particular process that has to be followed.
It said while the process initially envisaged by the State Services Commission did not eventuate, that did not require investigation.
However, Grant Robertson said on Thursday the decision will not stop Labour asking questions.
"We believe that the Prime Minister intervened in a process he had established for the State Services Commissioner to run and shoulder-tapped his friend, who was the only person interviewed five days later.
"We still think many New Zealanders regard that as something that should not have happened and there's still questions to be answered."
Mr Robertson says John Key needs to explain why the process changed.