Forestry Tasmania has shared that it would not be, in any way, badly affected by the issues with one of its customers, Forest Enterprises Australia.

Logs for its Bell Bay sawmill are purchased by the FEA through a joint venture with Timberlands and Forestry Tasmania.

The banks had appointed receivers for the proper management of some of FEA's assets which are inclusive of the aforementioned sawmill, a development which happened earlier during the week.

Bob Gordon, the Managing Director of Forestry Tasmania, has said that FEA makes all the payments for the logs well in advance and Forestry Tasmania, therefore, would not be affected severely if the mill is shuttered.

"And we've put in place processes to make sure that any money owing to Forestry Tasmania or the softwood joint venture is covered off as far as possible. And I understand that over the last two days there's been discussions with the administrator and the receiver to make sure that as far as possible business continues as usual", he said.