A Devonport-based charity is withdrawing from Hobart following the Federal Government's failure to approve a $150,000 grant.
The departure of Loaves and Fishes will leave a massive hole, after supplying 70 per cent of southern Tasmania's emergency food relief.
It needs $150,000 from Canberra to continue its vital work.
Independent Member of Clark Andrew Wilkie is asking the Prime Minister to restore the funding.
"If money is short these are the people who need it, these are the most vulnerable people. The fact of the matter is they're the ones that are missing out," he said.
He lobbied the Federal Government in the middle of the year, but to no avail.
"They dismissed my concerns and said Loaves and Fishes hadn't applied for funding, in fact that's just plain wrong, they weren't eligible to apply for funding because they're not an national organisation."
"I've got a letter on my desk to shoot off to the Prime Minister and I'm hoping that common sense will prevail," he added.
Liberal Minister Michael Ferguson says they will talk to their Canberra counterparts.