Funding for Landcare has been cut by 20pc, and hundreds of regional conservation projects are being wound up as the Government reallocates funds to meet its 2007 election promises.

Two of Australia's most successful marine conservation organisations SeaNet and the Marine Coastal Community Network will not receive any more money with the founding of the Government's $2.25 billion Caring for Our Country grants program.

The chief executive of OceanWatch Australia, Anissa Lawrence, said: "SeaNet is an immense loss. These are the people who turn policy into action.

"They are the front line of conservation."

In a letter advising the network that would receive no further funding, the Department of Environment said the decision-makers had considered ''whether the project will implement 2007 election commitments (or) fulfil a Commonwealth obligation''.

Federal Greens senator Rachel Siewert said the Rudd Government's new grants program was ill conceived and had been "a shambles from the start".

"It seems to consist of cutting funding to successful programs in order to start afresh in 2008-09," Sen Siewert said.

"This is madness: we are not learning from years of knowledge and experience."

The Opposition's environment spokeswoman, Dr Sharman Stone, said the Government's new grants scheme forced small community groups to compete against the CSIRO and other Commonwealth agencies.

Funding for regional catchment management groups had been slashed from $300 million to $25m.

"The Rudd Labor Government seems to have forgotten that protecting the environment isn't just done from behind a desk: someone also has to be behind a shovel," Dr Stone said.

Replying to questions in the Senate yesterday, Climate Change Minister Penny Wong said the new grants program presented "a range of more targeted opportunities".