Scottish Conservative education spokeswoman Liz Smith has put a question to the Scottish Executive asking what consultations had taken place between it and local authorities 'regarding the allocation of grant-aided expenditure to the provision of places in partnership nurseries'.
Official guidelines state that councils must secure enough places locally to meet demand, as well as ensure that parents are given the choice to use private nurseries in other authority areas.
If funding is withdrawn from nurseries, parents must find another partner nursery or risk losing their funded place.
Happy Days Nursery in Maryhill, Glasgow, a not-for-profit nursery, had its funding withdrawn by Glasgow City Council for new children starting their ante preschool year (when children are three) after offering the partnership places for ten years.
Manager Jacqueline Hancock said the council removed its support after the setting was marked down in two areas by the Care Commission. A variation to the nursery registration in June involved a second visit which showed improvements had been made.
'The decision has affected 17 families who are now struggling to pay for places for their children but cannot move to another setting, as the other nurseries running the scheme charge considerably more.'
The nursery is appealing against the decision.
A council spokesman said, 'At the time the nursery partnership contracts were up for renewal, Happy Days unfortunately fell short of quality standards. We have since received no further information from the external regulators to contradict the original report.'