The Greens have accused Forestry Tasmania for planning to operate a wood chipping project.

Forestry Tasmania sells timber to companies such as Gunns to convert wood into chips or sawlogs.

The Greens' forestry spokesperson Kim Booth said that he heard from other sources that Forestry Tasmania is considering to produce native forest wood chippers if Gunns step away from using native timber.

“It's a rumor around the community that FT, because they recognize the writing's on the wall and that Gunns will move away from native forest logging and native forest wood chipping... they will set up an alternative market,” he said.

“The question that I was attempting to ask... is whether or not Premier David Barnett would rule out allowing the rogue agency Forestry Tasmania becoming a woodchopper and exporter in their own right. Now that is the alarming rumour that is circulating around the traps.”

Forestry Tasmania has declined to comment.

The company was subject to controversies when environmental groups launched a protest earlier this month outside its Hobart offices because of “destructive logging practices that are economically and environmentally unsustainable.”

A community group has also called for an independent risk assessment into the cost and impact of plantations in Tasmania.