The state government of Tasmania is now under fire as the opposition raised questions on Thursday whether the decision in 2007 to allow Forest Enterprises Australia exclusive access to a total of 300,000 tonnes of radiata pine was made under extreme duress.

That contract eventually proved disadvantageous to the state as FEA was forced into receivership in April this year with debts that ran to about $216 million.

Opposition industry spokesman Peter Gutwein urged Resources Minister Bryan Green to clear the air on the questionable deal, stressing that the state minister should explain "whether or not putting this softwood resource out to tender was and option when FEA went into receivership."

Mr Green also asked the state to explain why the huge forest resources were not returned to the market even when it became clear that FEA was going under as he suggested that the Scottsdale sawmill would have fared much better if Gunns were picked instead to harvest the woods.

The Liberal spokesman said that FEA should have not been allowed to take part in harvesting the trees as he asserted that the huge amount of state resources could have been used to support "both the Scottsdale mill's future but also the north-east economy."