Forestry Tasmania chairman Bob Annells has described the Japanese market as ``on a knife edge'' at a parliamentary committee hearing today.
Mr Annells was part of a delegation organised by its biggest contract holder Ta Ann Tasmania that visited Japan to brief customers on the progress of the forestry peace agreement.
Mr Annells said the clear message from Ta Ann customers was ``fix it once and for all or we walk''.
Forestry Tasmania supports the legislation with some conditions.
``To do nothing in the face of our declining market and absolute proof... that this market is capable of being destroyed, it will get a lot worse very quickly.''
Mr Annells also revealed he had met with Infrastructure Minister David O'Byrne to discuss increasing log exports from southern Tasmania and to develop a plan to move processing residues.
Huon Valley Environment Centre's Jenny Weber will address the committee this afternoon.