He described the axing of the Government-funded foundation-focused training opportunities (FFTO) programme as ''doubly damaging'' for Dunedin.
It meant the city would lose funding for almost 300 places on tertiary courses, aimed at getting beneficiaries into the workforce.
Simultaneously, it put at risk the jobs of those teaching the courses.
''Again, it would appear that we are lower on the priority list than somewhere else, and this is consistent with the other withdrawals of funding and jobs that we are seeing, like Invermay,'' Mr Cull said.
''It's not just an enterprise closing down. It's the loss of spending that was specifically aimed at increasing the number of people in work and improving economic development and, to that extent, it's doubly damaging,'' he said.
Mr Cull said it was ''understood'' funding for new courses to replace the FFTO programme would be allocated elsewhere in New Zealand, where the Government determined the highest demand was.
Methodist Mission director Laura Black said she also had anecdotal evidence that was the case.
''The Government's closing of its FFTO programme will mean the loss of nearly 300 student places, $1.5 million in income, and potentially up to 15 full-time jobs from the local economy,'' she said.
''We understand that all of the new places will be allocated north of here, to Northland, Gisborne, Wanganui, Hawkes Bay, Auckland and Christchurch.''
Ms Black said the announcement to replace $20 million of FFTO funding nationwide from January 1 came at the worst possible time.
It gave Dunedin providers just a few months to do their best to secure funding for new courses through the Tertiary Education Commission, she said.
''Even if we are successful in getting some funding, it isn't likely to be allocated until the middle of next year, which means we will be in limbo for six months.''
Ms Black and other Dunedin FFTO providers called on the city's politicians to ''stand up for Otago'' and help lobby the Government for funding.
In response to questions from the ODT last week, Mr Joyce said there was no agenda to move funding ''in any direction'' throughout the country.
He said the allocation of funding for new courses would be driven by demand in each region.
