East Coast businessman Graeme Elphinstone has told a parliamentary inquiry that an EOI process put forward by the Triabunna woodchip mill's new owners was a ''stall tactic to make the thing die''.
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The inquiry into the sale and dismantling of the mill today included public hearings at Triabunna.
Mr Elphinstone, who owns a trailer manufacturing business, told the committee the closure of the mill was very hard on the community.
''I don't think people realise what it's done to good, honest hard working people,'' he said.
''It's never easy, and it never will be, but if we don't look forward we'll never get anywhere,'' he said.
Mr Elphinstone said the EOI process to manage the mill by Triabunna Investments was a ''stall tactic to make the thing die''.
''It's become quite obvious that was the main prize of buying it,'' he said.
Premier Will Hodgman has not ruled out compulsory acquisition of the site.
Greens Denison MHA Cassy O'Connor asked Mr Elphinstone how he would feel if land related to his business was compulsory acquired.
''That would depend on whether I was doing good for the state,'' he said.
''But I think he's doing it to kill the industry.''
Former Glanmorgan Spring Bay Council mayor Cheryl Arnol said alarm bells went off in the community when environmental activist Alec Marr was appointed as mill manager by new owners Jan Cameron and Graeme Wood.
'''I wasn't sure that gentleman was the right person to be running the process,'' she said.
Mrs Arnol said the former government should have done more to keep the mill open, and cited the Tasmanian Forests Agreement.
''Parties are in breach of those agreements but nothing was done to act of them,'' she said.
The committee heard the closure of the mill saw 193 jobs reduced down to 7.
''People wanted to see it as 'our mill','' Mrs Arnol said.
Hearings continue in Triabunna this afternoon.