FURTHER job losses are likely to follow those at timber processor Ta Ann.

Forestry Tasmania has admitted that it may be hardest hit as Ta Ann is its biggest customer of wood products.

However, a spokesman for the government-owned business was reluctant to detail what the impacts might be.

``It is difficult to quantify the impact on contractors, because we don't know how many will be able to cope with a further significant reduction in business,'' spokesman Ken Jeffreys said yesterday.

``However, clearly if production is down 30 per cent, then there will be 30 per cent less work for the contractors.

``It's also too early for us to comment on implications for staffing levels at FT. That will be a matter for consideration by the board and management, and we will obviously want to talk to staff before making any further public comment.''

Meanwhile, forest contractors are still waiting to find out whether their applications to share in $45 million of compensation have been approved.

Applications for the money closed in November last year, and the Tasmanian Forest Contractors Association is calling for an announcement to be made by the Commonwealth.

TFCA executive officer Ed Vincent said he would not take part in the intergovernmental process until the 98 applicants were told what was happening.

``Our priority is to deal with the creditors after our contractors and contractors' families rather than continue to meet as part of the IGA process.''

He said he now had doubts as to whether the Commonwealth would come through with the money.

``I'm very nervous as I think they can still walk away from this whole process and leave contractors swinging in the breeze.''

The federal government has consistently said the process is continuing and an announcement is expected soon.

Opposition Leader Will Hodgman said the intergovernmental agreement had failed to deliver its two major objectives: peace in the forests and protection of jobs.