The Tasmanian Government will not subsidise the mothballed Triabunna woodchip mill.
The mill's owner Triabunna Investments says the only way the east coast mill could run would be with massive government subsidies.
The company has confirmed it is waiting to see if the mill will be subsidised as part of the forestry peace deal, signed last week.
General manager Alec Marr says subsidies would be needed because market conditions are at the worst they have ever been.
Mr Marr would not disclose how much money would be needed to reopen and operate the site.
But Deputy Premier Bryan Green says it is not something his Government would entertain.
"I think that you'd want to see whether there are other people interested in running the facility," he said.
"In the past they've said that they would ensure that they'd open it for tender, expressions of interest.
Let's see what the market says." Deputy Opposition Leader Jeremy Rockliff was asked whether the State Government should comply.
"The Liberal Party policy quite clearly is that we support the reopening of Triabunna," he said.