Battle ensues on red gum logging forest ban at Riverina Murray in South-West new South Wales.

The logging industry in the State is disappointed over the banning of logging red gum while several environment groups were elated with the decision by the government.

Earlier this year, a legislation was introduced to the New South Wales Parliament where logging will be allowed only in sections of the Millewa Forest for the next five years.

Frank Sartor, an environment minister, said the legislation has been changed after they consulted and negotiated with the timber industry.

"The industry came to us and basically said that look they'd actually be happy to leave," Mr. Sartor said.

The Riverina Murray region will now receive $97 million for its structural adjustment package.

Russ Ainley from the Forests Products Association argues the amount is not enough, stating the red gum firms will be driven out of businesses.

Environment groups were elated over the red gum ban and said there will be tourism growth in the region. Felicity Wade of the Wilderness Society stressed the need to stop logging operations and the decision will help save the forest.

"We're fairly confident that now this decision's been made the trees can recover and we'll have these trees into the future." she said.

However, Barbham sawmiller Ken O'Brien is fully against the government's decision.

"How could the Government sit there and say that a few million dollars is going to fix everything up?" he said.

"It's just pure politics. What they were doing is grabbing Greens' preferences for the next election because they are desperate to try to get into power."

Mr. O'Brien points out the government's decision will have a negative impact on the logging industry, fearing that $60 million worth of equipment will be left unused on June while employees will lose their jobs and be driven out of the area.