Early childhood education providers in Dunedin are not taking last week's budget cuts lying down.
About 20 people representing public and private providers attended a public meeting yesterday to discuss the funding issue with the city's Labour Party early childhood education spokeswoman Sue Moroney and MPs.
Dunedin Community Childcare Association director Jo Ellis said it was a positive step after the shock of last week.
Industry employers wanted to take a proactive approach to handling the situation by informing parents and gaining political momentum.
"We can't just let this happen to us," she said.
On Thursday, the Government announced the sector would get $1.3 billion in annual funding, but said it would save $280 million by reducing the financial incentive for centres to have 100% qualified staff.
Early Childhood Education providers had been encouraged to have all staff in their centres qualified and had received subsidies for them.
This cut means that from next February, funding will only be provided for up to 80% of a centre's qualified staff.
Ms Moroney said Dunedin would be one of the areas hardest hit because 74 of the city's 103 centres had 80%-100% qualified staff.
With centres having to either cut staff, cut hours, reduce services or pass costs on to parents, the sector had "difficult choices" to make.
In choosing to reduce the money available, the Government had not taken into account the implications it would have on quality education for children, she said.
Either qualified staff would be cut, or increased costs would force parents to withdraw their children or have them attend fewer hours.
If the funding shortfall was passed on to parents, predicted fee increases ranged from $20 to $60 a week, per child, she said.
Ms Ellis said the Dunedin Community Childcare Association was considering its options in maintaining the current level of care for children, on a tighter budget.
Other centres would be doing the same and ensuring parents were well informed.
Another public meeting, organised by employers, will be held next month.
Parents and MPs would be invited to discuss the future of early childhood education in Dunedin.