Australia's legendary poet Dorothea Mackellar loved her sunburnt country and sweeping plains, but the Gillard Labor-Greens alliance is not showing the same affection.

The Nationals Senator for New South Wales John Williams says a literary competition for schoolchildren established in memory of Dorothea Mackellar is about to fold because the Government has withdrawn it's funding.

Senator Williams said the Government had contributed $50,000 annually to the competition which this year attracted 8,000 entries from schoolchildren as young as 5 from all over Australia.

But for some inexplicable reason, the Government has now decided the Dorothea Mackellar poetry awards which are based in Gunnedah are not important enough in the education of schoolchildren and has cut them adrift.

"These awards have been going for 26 years, and the organisers tell me next year will be their last as they are drawing on cash reserves. They find themselves in this situation because of a paltry $50,000.

Here is a Government that cannot run a school building program, a child care centre rollout or a My School website that has been roundly criticised, but runs away from a proven concept that broadens the education knowledge of our children whilst keeping the memory of an Australian icon alive.

The Member for New England Tony Windsor put Labor into power. Given that Gunnedah is now in his electorate, the onus is on him to get the funding back", Senator Williams said.