Feds should not save Forestry Tas: Greens

Canberra has been dragged into a tussle about the future of Tasmania's government-owned logging business.

The Greens at both state and federal level on Tuesday called on Tony Abbott's government not to bail out the ailing Forestry Tasmania, as doubt is cast over its future.

Tasmania's Liberal government has been given a review of the company, with the report's contents yet to be made public.

Premier Will Hodgman says there will be an announcement soon about "serious reforms" to the business.

But Australian Greens leader Christine Milne said the company should be wound up, and that the federal budget cannot withstand an "ideological handout".

Forestry Tasmania is responsible for managing about 800,000 hectares of public forest, and the production and sale of the land's timber.