The Prime Minister has set up a new council to support the timber industry, hoping to unlock the economic potential of Australia’s national parks.

Institute of Foresters national director Rob De Fegely has been appointed to the new Forestry Advisory Council, with more appointments yet to be finalised.

Prime Minister Tony Abbott told a timber industry dinner in Canberra last night that he thinks too much forest is tied up by World Heritage rules.

He says he would like to repeal parts of Tasmania’s Wilderness World Heritage restrictions, formed under its forest peace deal.

“We have quite enough national parks,” Mr Abbott told attendees.

“We have quite enough locked-up forests already; in an important respect we have too much locked-up forest.”

Under Tasmania’s forest peace deal, 170,000 hectares of forest was added to the Wilderness World Heritage Area.

The Government has reportedly asked the World Heritage Committee to delist 74,000 hectares of that region.

“We don't support as a Government and Coalition further lock-ups of our forests,” the Prime Minister said.

“Getting that 74,000 hectares out of World Heritage Listing, it's still going to leave half of Tasmania protected forever, but that will be an important sign to you, to Tasmanians, to the world, that we support the timber industry,” he told the timber industry representatives’ dinner.

Mr Abbott took the opportunity to blame the Tasmanian Greens for a large range of the state’s problems.

“We all know Tasmania has the lowest wages in Australia, it has the lowest GDP per head, it's got the lowest life expectancy, it's got the lowest educational retainment in the country and it's got the highest unemployment, and funnily enough for the last eight years it has had a government in large measure dominated by the Greens,” he said.