The near-shut down of a youth phone helpline could be a consequence of the Children's Minister's attack on contractors

An Oranga Tamariki contract review threatened to pull funding from the 0800 What's Up helpline run by Barnardos Aotearoa, in July.

Revelations the service could be shut down without funding - has prompted a u-turn from Minister Karen Chhour .

Public Service Association National Secretary Duane Leo says it shows how damaging the proposed cuts were going to be.

He says the contracts must be made permanent to take the uncertainty away from the sector.