The Edinburgh coach made claims at the weekend that Glasgow have more money to spend than his team.
"That is definitely not the case," said Hugh. "How could it possibly be? Frank comes up with figures from all over the place, like the fact that they don't have an academy, but there is no way our playing budget is bigger than theirs.
"Admittedly, they have performed well this season and their guys are featuring strongly in the national squad, but there is no question that the players they have would be seen as worth much more than ours."
In today's Herald Kevin Ferrie writes that almost every major signing of the past five years has been made by either Edinburgh or Borders.
He claims that since Andy Nicol and David Hilton joined Glasgow back in 1999, the only front-line international player they have recruited is Cammy Mather, who had already left Edinburgh in controversial circumstances
Edinburgh have brought in Todd Blackadder, the former All Black skipper, Brendan Laney, from Super-12, and brought Scott Murray, Derrick Lee and Craig Joiner back from England.
At the same time most of Scotland's own promising talent such as Chris Paterson, Gordon Ross, Simon Taylor, Tom Philip and Ally Hogg, have all found their way to Edinburgh.
Borders have recruited big names in Gary Armstrong, Doddie Weir, Gregor Townsend, Semo Sititi, Tanner Vili and George Graham, but have struggled .
Hugh does agree with Frank Hadden on the issue of the overall resources available to Scottish sides.
"You look at Connacht, the poorest of the Irish teams and they're funded higher than any of the Scottish professional teams, while Llanelli's budget is more than that of the three Scottish pro teams put together."
Kevin Ferrie's article also looks at Hugh's feelings on the Celtic League set-up - you can read the article here