Former Australian Forest Contractors Association chief executive Colin McCulloch told the inquiry the sale of the mill to environmentalists Jan Cameron and Graeme Wood was an 'up yours' gesture to Forestry Tasmania, and possibly a move to remove competition.

Mr McCulloch said there was 'absolutely no doubt' the sale to Ms Cameron and Mr Wood was to gain a social license for a Tamar Valley pulp mill.

He said a perfect storm of circumstances led to the condition of the forest industry today.

Ian Ravenwood from Private Forests Tasmania said there was 'orphan wood' in the south of the state that no longer held value due to the lack of an export facility.  

He said Tasmania needed an export facility in the south, and said 'the last thing Tasmania can afford is to be on the bleeding edge of new technology' such as biofuels.

The committee will hear from University of Canberra senior research fellow Jacki Schirmer next, and Opposition Leader Bryan Green will appear this afternoon.