government dirty work

I'm just in a bit of a dilemma at the moment. I am on the small committee of a community centre, which is basically a hall with kitchen and storage facilities. There is a playgroup there which originally moved there when they were booted out of the council building which was no longer safe. In recent years they have gained Ofsted registration and started providing childcare provision using the Nursery Education Grant. This has now been withdrawn, as the playgroup has been floundering and has failed to pass the regulations.
I just received a forwarded email. Basically the council has approached a third party to recue the playgroup so they can continue to offer "sessions" of childcare/early years education for the NEG. This sounds to me like I am being asked to do the government's dirty work for them and I am not happy about it at all. The third party want to come in and extend the amout of time the playgroup already have and are using government doublespeak to justify their actions. What's in it for them, I wonder?
The community centre is basically a hall which can be hired out to community groups, arts classes, etc, and any one group using a huge block of time takes this provision away from the rest of the community. I feel that there is enough government funded childcare in the area, and if there isnt and the council wants more, say 100% of over 2's or 3's, then it's up to them to provide a building to house this, and not us.
The problem is the rest of the committee just don't get what problem I have with the playgroup- "well they will provide revenue", which we are not short of, by the way. I am tempted to resign if this goes ahead, but feel like I should really stick my heels in on this one. I use the room to do taichi classes and put on "family learning" events, so it will be difficult for me to just walk away.

Here is a chopped up excerpt from a frantic email I wrote to the committe last night. I havent been able to calm down since...

"I think this should be considered very carefully as it is beginning to sound like something that may not be appropriate or benificial to [the communty centre]. What was once [a] 'Playgroup' is now being refered to as a 'Preschool', the difference being that between a group of parents renting a hall to meet up with toddlers, and a government funded childcare/educational provision. Ok this has gradually developed over many years, and I know there has been some funding available here in the past. I'm just wondering how much this is really needed:

"the parents of children attending are more able to take up employment, meet others, attend an event elsewhere and their children benefit from socialising with others, accessing early years educational provision and care. They are all members of said community".
Ok in [this town] there are 6 nursery schools, 3 pre-school playgroups, 4 day nurseries and 14 childminders offering registered pre-school childcare. I'm not sure how many parent and toddler groups there are, or places parents can take their children, not that many.

How many community centres are there?
...offering flexible space to many varied community groups, and classes, with endless possibilties... not too much red tape

Are we running a community centre or a school?

I know the bulding is owned by the Labour party but this all sounds a bit New Labour to me...
ie: "accessing early years educational provision and care"... presumably most children already have this, at home.
"parents... are more able to take up employment, meet others [er children stop you doing this?], attend an event elsewhere" !!!

I'm just saying that yet more government funded childcare isn't necessarily what people need or want. There seems to be this assumption that it is a good thing and you cant knock it, but the benfits to children are highly questionable.

Another thing, which I'm not sure how true it is now, but the [ ] playgroup was the only place locally offering childare within the government funding allowance (Nursery Education Grant). They were trying and failing to do the impossible, ie provide quality childare within the budget of the NEG, which all other providerers require a top-up fee. No wonder Calderdale doesn't want them to shut down: you couldn't complan that the NEG wasn't enough as "well [ ] Playgroup offers childcare for free (ie within the NEG)".
I really dont know why they ever bothered with the ofsted thing in the first place- it can be a playgroup without having to leave your chiildren, if you want to leave them take them to a proper nursery-there's plenty of them. (sorry IMO it's never been a proper nursery- I took my 2-year old there once and he was told if he wanted to go to the toilet he had to point to a piece of paper with the word toilet written on it- he was 2. I never went back to find out whether she got her NVQ, the person in charge). OK maybe I'm wrong, maybe [this town] is crying out for yet another pre-school? But is [this community centre] the right venue?

Basically it feels to me that the nursery would end up taking over [the community centre], which I think would be a shame to lie down and let New labour get its way, ie all children in childcare as young as possible and parents back to work. No fun, no family learning, no community cafe, no community centre.

Am I over-reacting? well, I'm just wondering what this means exactly:
"...equipment and facility provision and most importantly, security and hopefully extension of the rental and tenureship of the space" "

I would very much appreciate any helpful advice- I am feeling a bit alone with this. Cheers.