The State Government remains focussed on securing a stable and strong future for Forestry Tasmania.

Acting Premier Bryan Green said today the Government is determined to ensure Forestry Tasmania is on a firm financial footing.

Mr Green said Forestry Tasmania would remain a standalone corporate entity responsible for commercial wood production as part of reforms that have been announced.

"Everything the Government has done and what we are doing now is to ensure Forestry Tasmania remains a viable Government Business Enterprise," Mr Green said.

"Any responsible Government could not ignore all the evidence and expert advice which shows Forestry Tasmania's current business model is not sustainable.

"The Liberal Party now concedes it can't be business as usual and wants a review of Forestry Tasmania but the horse has bolted.

 "The best Will Hodgman can come up with is a review of all the reviews that have already been undertaken.

"He has been so obsessed with playing politics that he has failed to grasp the magnitude of what has been unfolding in the forest sector.

"The undeniable fact is that the current structure of Forestry Tasmania is not viable in the face of the worst downturn we have ever seen in forest industry.

Mr Green said the board of Forestry Tasmania was itself concerned over its financial viability.

"The Government has had to make provision of $110 million over the next four years to assist Forestry Tasmania if needed because of the significant losses being forecast for the business.

"Just as we will not stand by and watch the demise of the forest industry, the Government is taking responsibility for ensuring the viability of Forestry Tasmania as a Government Business Enterprise.

"That requires leadership and decisions to make sure our forest sector has a long term future.

Mr Green said that as a Government Business Enterprise, the Forestry Tasmania chair and the board needed to operate on a commercial basis consistent with Government policy.

"We need a stable Forestry Tasmania board and we are working quickly to appoint a new Chairman," Mr Green said.

Mr Green said Forestry Tasmania would play a key role in the transition to a restructured business following the decision to separate its commercial and non-commercial operations.