The timber industry says workers have been treated with "total disregard" in the process of establishing a gigantic national park to protect koalas and other endangered wildlife.
Some 176,000 hectares of state forest will be connected to existing national parks to create a reserve twice the size of the Blue Mountains national park, on NSW's north coast.
Close to a quarter of the region's timber mills paused operations on Monday under a temporary moratorium following the announcement of proposed boundaries for the 4760 square kilometre Great Koala National Park.
The park - an election promise - will protect more than 12,000 koalas, about 36,000 greater gliders and more than 100 other threatened species, NSW Labor says.
It is also hoped to boost regional tourism, and be partly funded through carbon credits.
The carbon credits proposal is being assessed by the federal government and is expected to take some time, NSW Environment Minister Penny Sharpe told the ABC on Monday.
"We want this to be a world-class park that's on the must-visit list," she said.
The government has promised support for out-of-work timber workers but the announcement has been heavily criticised by the industry.
Timber NSW chief executive Maree McCaskill says the peak body will be working with unions to limit the damage.
"Our members are disappointed but not surprised at the total disregard for not only the science but the livelihoods of people in country areas," she said.
"It's important that the people whose livelihoods and futures are now at jeopardy be treated with some dignity."
The timber industry proposed a smaller 37,000ha park, with another option for a 58,000ha park.
"It's unfortunate that they have ignored that advice and taken the worst-case scenario," Forest and Wood Communities Australia chief executive Steve Dobbyns said.
The value of the support package, modelled on the pandemic-era JobKeeper payments, is commercial in confidence, the government said.
Premier Chris Minns said his government was tempted to compromise and shrink the park's size, but decided against it.
"That would be the worst of all worlds," he said on Sunday.
"There would be an economic impact on the industry, but we wouldn't be solving the reason for the Great Koala National Park."
