Elaine Murray, Labour MSP for Dumfries, made the comment during a Scottish Parliament debate on the sector. Robert Brown, Liberal Democrat MSP for Glasgow, also attacked the SNP minority Government's policy on the sector as "gobbledegook".
Other MSPs said the Government was taking too long over new Single Outcome Agreements, which will govern how councils spend money, including grants to the third sector.
Groups including the Scottish Council for Voluntary Organisations, Community Care Providers Scotland, Youthlink Scotland and several trade unions have issued a combined response to the debate.
They criticised the Government for cutting ring-fenced funding, called for sector workers to be paid at the same rate as public employees and said the sector should have more involvement in negotiating Single Outcome Agreements.