LEIGH SALES, PRESENTER: The Federal Government's defending its commitment to mental health funding after the head of its advisory council resigned, accusing it of not taking the issue seriously.

In his resignation letter, Professor John Mendoza says the Rudd Government's claiming credit for the increased investment in mental health, which was actually the work of the Howard Government.

Hamish Fitzsimmons reports.

HAMISH FITZSIMMONS, REPORTER: On Thursday in Canberra, representatives from the mental health sector will present the Federal Government with a letter demanding funding for mental health be taken more seriously.

PATRICK MCGORRY, MELBOURNE UNI: It starts off with a commitment to equity in funding and then goes through a series of more specific proposals for immediate investment and growth, and that's what the Prime Minister has received and we'll be more formally presenting that to the Government on Thursday.

HAMISH FITZSIMMONS: The sector's feeling it's come off second best in funding and it's been highlighted by the resignation of the chair of the Government's peak advisory body on mental health. John Mendoza believes mental health is not a serious issue for the Rudd Government and has resigned in disgust.

JOHN MENDOZA, FMR CHAIR, MENTAL HEALTH ADVISORY COUNCIL: We were set up as an advisory council by the Rudd Government. It was a pre-election commitment. It was very much as a consequence of the recognition that the policy directions in mental health were not working and that this government was gonna take a different course and it was gonna take a more assertive response, greater leadership role at the national level. Well that simply hasn't happened.

HAMISH FITZSIMMONS: Other members of the advisory council say the body is now going to have to rethink its role without a leader like John Mendoza and the limited remaining mandate for the council.

DAVID CROSBIE, CEO, MENTAL HEALTH COUNCIL OF AUSTRALIA: At the moment it's difficult to see how in the lead-up to an election we can appoint somebody given that the current appointment of the council ends in the next six months or so. So I think the council's in a bit of a hiatus at the moment.

HAMISH FITZSIMMONS: Over the next four years the Federal Government has allocated mental health $168 million out of $7.4 billion in health funding. That's not enough to solve the problems and frustrations for those in the sector, say its representatives.

DAVID CROSBIE: The frustration comes from hearing these stories over and over again of people becoming desperate, taking their partners or their children, trying to get in through a hospital emergency department and being turned away and their experiences being so negative, and I think that drives a level of frustration, even a level of anger in the mental health sector.

HAMISH FITZSIMMONS: In Federal Parliament, the Prime Minister repeatedly refused to answer questions about Professor Mendoza's resignation.

KEVIN RUDD, PRIME MINISTER: In the most recent Budget the Government made a $175 investment on the important reforms needed in mental health. These will in part deliver more youth-friendly mental health services, more mental health nurses and more support for people with mental illness.

TONY ABBOTT, OPPOSITION LEADER: He's now been talking for nearly three minutes; why has he air-brushed Professor Mendoza out of this question?

KEVIN RUDD: So on the question of mental health, we believe this is a huge priority for the future of the country.

HAMISH FITZSIMMONS: The Australian of the Year Professor Patrick McGorry says the Government's decision to defer boosting mental health funding until next year fails the 750,000 young people who need it now.

PATRICK MCGORRY: They seem to think it's OK to defer it. We don't think it's OK. People's lives are at risk. There's a whole generation of young people who are still being locked out of mental health care because of the under-investment in that area of reform.

HAMISH FITZSIMMONS: Whether Thursday's trip to Canberra by sector representatives will make a difference in an election year is yet to be seen.

Hamish Fitzsimmons, Lateline.