Environmentalist and Wotif founder Graeme Wood has flagged court action against the chairman of the committee set up to investigate the sale, closure and dismantling of the Triabunna wood chip mill.
Mr Wood purchased the mill with entrepreneur Jan Cameron from former timber company Gunns.
Mr Wood this morning released a statement saying he was seeking legal advice against Lyons Liberal MHA Guy Barnett.
Mr Wood claims the inquiry exceeds the authority of parliament with the terms of reference falling outside the scope of the committee.
"If it is the case that the standing committee has exceeded the authority of parliament then Parliamentary privilege no longer stands," Mr Wood said.
Mr Wood claimed that Mr Barnett used parliamentary privilege to make "groundless criticisms".
He has called on Mr Barnett to halt all proceedings.
The hearings this morning have been postponed while the committee meets privately.