Australian Solar Timbers owner Dr Douglas Head said his calls for an inquiry centred on what he believed were commercial anomalies in contracts with Boral.

"And while these anomalies are widely understood within the industry, there exists a profound reluctance to address these issues," Dr Head said.

"I believe this could inevitably result in the destruction of the family companies that were, after all, the original pioneers of the NSW hardwood industry," Dr Head said.

"Courage to remedy this uncompetitive mess is required. 

"The situation cannot be avoided without tacitly accepting the unnecessary sequential closure of private companies across the NSW North Coast. 

"These enterprises are now presented with this inequitable market administered by Forestry Corporation NSW which is destroying their viability. Currently Forestry Corporation NSW seems only comfortable dealing with a corporate, but not with efficient private enterprises."

Dr Head said the contracts provided Boral with a log supply contract that is substantially different to what the remainder of the industry operates under.

"Boral uniquely enjoys a preferential choice of log species it receives, which means that it gets the most desirable logs, however it still pays the identical price to the rest of the industry, which is then allocated the undesirable logs left behind.

"This is inexcusably unjust for the rest of the industry which has to compete in the same market as Boral.

"The issue is that the market is uncompetitive because of administrative decisions by Forestry Corporation NSW."

Boral's Executive General Manager of Boral Timber, Steve Dadd, said that it has been critically important for Boral to work closely with the government. 

"As NSW Forestry Corporation's largest customer and with a major proportion of the industry relying on Boral for employment, it has been important for Boral and NSW Forestry to work together to ensure sustainable harvesting of the north coast forests now and for the future," he said.

With the improved certainty for Boral's business and the strengthened sustainability of the north coast forest resources, Boral is investing further capital into its north coast timber mills to develop new products and improve processes, he said.

Pavy says government will investigate

MEMBER for Oxley, Melinda Pavey, says the state government is continuing to investigate these legacy issues.

"This government has been working to unwind the mess the former Labor government left behind as a result of its North Coast native forest decisions, to ensure that this industry is viable, profitable and sustainable for the future," Mrs Pavey said.

"The NSW government is continuing to investigate these legacy issues, with the independent Natural Resources Commission last year undertaking a process of consultation with industry, which is now under active consideration."