THE Liberals and Greens both called for a state parliamentary committee to inquire into the contractors' exit grants program yesterday.
Opposition forestry spokesman Peter Gutwein and Greens forestry spokesman Kim Booth have independently moved for a new committee to assess the $45 million program.
Mr Booth said the new inquiry was needed to investigate "allegations of rorting and fraud", raising the prospect of grant recipients using loopholes in their payment contracts to remain in business.
"This is public money. It's a very serious matter," Mr Booth said.
"There are potentially even more serious questions over Forestry Tasmania's decision in January 2012 to send unauthorised letters of support for the applicants' exit from the public native forestry industry."
Mr Gutwein called on the Greens to support the Liberals' inquiry.
"Timber workers, contractors and industry representatives have all raised concerns about this process, and these concerns need to be aired, and a parliamentary committee is the appropriate place for that to occur," Mr Gutwein said.
As the Liberals and Greens control 15 seats in the House of Assembly, an inquiry is likely to take place.
Yesterday Australian Forest Contractors Association chief executive Colin McCulloch revealed industry-wide concerns with the department's management of the program.
Any state inquiry would come on top of the Senate inquiry championed by Senator Christine Milne.