Uncertainty over Triabunna mill tourism plan, owner Graeme Wood says

Environmentalist and Wotif founder Graeme Wood says his investment in the Triabunna woodchip mill is uncertain unless there is more government support.

Mr Wood and his business partner Jan Cameron bought the mill in 2011 from former timber company Gunns and plan to develop it as a tourism hub.

The acquisition and dismantling of the mill is being investigated by a parliamentary committee.

Mr Wood told 936 ABC Hobart his investment in Triabunna was uncertain because the Government could still compulsorily acquire the site.

He said the inquiry was petty and was a disincentive to more investment in the state.

"There is an air of uncertainty hanging over the venture at the moment," he said.

"We are getting mixed messages coming out of the Government.

"On the one hand they are saying tourism is terrific and on the other hand the Premier won't rule out compulsory acquisition of the Spring Bay mill site.

"The Premier has not ruled out the possibility of (acquiring) the site, so from a pure business investment point of view, how much am I going to invest in it to have it all torn up."

Mr Wood said the Government played favourites when it came to tourism projects in Tasmania.

"It seems to me, if you're not a favourite of the incumbent government then they will stand in the way of what you might want to do.

"I invest in lots of places and I've got to say that trying to invest in Tasmania you endure a lot of friction.

"I'm not rushing into anything until I see stronger political support or at least not negative political attitudes."

Mr Wood had offered to appear before the committee but was told by the chairman, Liberal MP Guy Barnett, that the offer had come too late.

The Government said it would not rule out compulsory acquisition because it did not want to pre-empt the inquiry's outcome.

His other claims have been rejected by a government spokeswoman who said they were wrong and without foundation.

When the inquiry moved to Triabunna today, Mr Barnett said the committee had asked Mr Wood for permission to tour the mill site.

"We didn't receive a response to that, so that's not happening," he said.

Local businessman Graeme Elphinstone was the first to appear.

He said the 2011 sale had a significant impact on his engineering company which specialised in building log truck trailers.

"We went from building a trailer every four working days to one every 28 days," he said.

Former mayor Cheryl Arnol told the inquiry the new owners were entitled to do what they wanted with it.

She said that if the mill could not be re-opened for the industry, it should be used for something else that created jobs.

Mr Barnett has defended the inquiry.

"This committee is looking to get to the bottom of things and to get closure," he said.

But Labor has again declared it had failed to unearth any new information.

"This is a political process, this parliamentary investigation," Opposition spokesman Scott Bacon said.

The inquiry is likely to result in three conflicting reports: one by the Liberal MPs, another by Labor's Rebecca White and a third by the Greens' Cassy O'Connor.

Meanwhile, Mr Wood has released polling showing 69 per cent of Tasmanians supported his tourism plan.

His company commissioned a phone survey of 404 people from the electorates of Franklin and Lyons asking how they felt about his plans for Triabunna.