"If another organisation gets the funding to do it then we will fully support them and if it is about applying then we will do that as well," she said.
"Either way it seems like it is going to happen. We were going to do it without funding anyway."
Peacock Coyle said she and Wade just wanted the competition to be available for the Bay of Plenty and Waikato.
"I think it is excellent. It is a positive for the whole community and the arts that the Government is taking something like this so seriously," she said.
"My hope is that the money, or any extra money, is put into a New Zealand company because there is a lot of people out there who want to give it a go."
Peacock Coyle said she would be disappointed if the reins were given back to an Australian company.
Tauranga mayor Greg Brownless said Baycourt should put forward a proposal if the Government deemed Stage Challenge worthy of support.
However, he had mixed feelings about where Government funding should be put towards education.
"I think it is important to keep youth active and if the idea is keeping kids active and people don't get into trouble then it is great."
Hipkins said performances designed and led by the students themselves provided a valuable opportunity to build leadership skills while promoting teamwork and commitment.
He said they also allowed students to work alongside industry professionals in staging, lighting and video production.
"Music, drama and dance are an important part of the curriculum and for many young people are a way of expressing their creativity and building confidence," Hipkins said.
"As a result, while the Stage Challenge brand itself is licensed and cannot be replicated, I am today inviting potential providers to put forward expressions of interest to run national and regional opportunities for students to showcase their skills."
Hipkins invited the Stage Challenge Foundation to put forward a proposal.
The ministry was now seeking potential providers with the capability and experience to deliver services in the production of performing arts activities.
It was expected the process will be completed by the end of term one for activities to be held from the second term of this year.