The Government announced it would be giving more families childcare support but Junior Junction co-director Vince Grgicevich doesn't think it will benefit early childhood centres.
On Sunday, Prime Minister Jacinda Ardern revealed more families would have better access to childcare support.
Ardern said it would be part of a cost-of-living package to help families out.
Gricevich said it would be a quick fix to help families out but it won't help early childhood centres in the long run.
"It doesn't address the cost that we take on every day to run an efficient centre," he told AM.
He added the government had only thought about helping families get their children back into early childcare and hadn't thought about how the centres can provide a decent education for them.
"What it won't help is the issues that the sector as a whole are facing."
He said the funding of early childhood care centres just isn't enough.
"The amount of funding that the Government provides us just doesn't cover the increased costs that we have to pay with the increased pay parity."
He said the early childhood sector has asked for a review for a long, long time and despite them being partially government funded, they aren't making a profit.
"A daycare centre running at 70 percent full day today is not making money and day centres will close."
Watch the full interview above.
