The Deputy Premier Bryan Green today dismissed Liberal claims that Forestry Tasmania was to be shutdown as silly and ridiculous.

"The Government's aim is to ensure Forestry Tasmania is on a sound business footing for the future," Mr Green said.

Mr Green said the Strategic Review of Forestry Tasmania undertaken by URS had recommended restructuring of the Government Business Enterprise.

"The Government has made no secret of the work being done to ensure Forestry Tasmania is sustainable and we have been up front about the challenges facing the business.

"That is why we made a contingency in this year's budget to assist Forestry Tasmania should it be needed during the worst downturn the sector has seen.

"I acknowledge the difficulty and uncertainty this has caused Forestry Tasmania employees but I assure them the best long term interests of the industry are at the heart of every decision we make," Mr Green said.