MORE than 450 jobs could be lost due to the creation of four new national parks and the expansion of others along the Murray River, the Victorian timber industry fears.

The Victorian Government announced last week timber harvesting would be banned in the new Lower Goulburn River, Warby-Ovens, Gunbower and Barmah National Parks.

Harvesting will be allowed in Gunbower, Benwell and Guttram state forests.

The Victorian Association of Forest Industries estimated there would be 477 direct and indirect job losses from the cut in timber harvesting.

VAFI chief executive officer Philip Dalidakis questioned the Government's estimate of only 56 job losses.

He said figures from a La Trobe University study showed 108 people were directly involved in forestry and sawmills, 163 in furniture making and 196 in wood product jobs in and around North Central Murray area.

"Those 56 job losses could be extrapolated to 477," Mr Dalidakis said.

However, Environment Minister Gavin Jennings said those directly affected would be assisted by a $4.5 million package.

He said the package would create a range of employment opportunities in local communities, including an additional 30 rangers and 10 people to construct fencing and ecological thinning of trees.

"When combined with the estimated 26 new tourism jobs that will result from the changes, I am confident the package will see a net increase in jobs," Mr Jennings said.

A hotline has been set up to take calls from affected workers to assist them with employment options.

Mr Dalidakis said he thought the package was "a little on the low side" but would wait to see details before commenting further.

Arbuthnot sawmill managing director Paul Madden said sawmills had provided year-round employment for the past 100 years.

Mr Madden said mills in Benalla, Picola, Nathalia and Echuca , all in Victoria, would be shut out of the new national parks.

"We believe about 85 per cent of the red gum resource has been lost to mills on the Victorian side of the border," Mr Madden said.

"It will have a huge impact."

Mr Madden said the aid package was "extremely inadequate."

Nationals spokesman Peter Walsh also said the package was inadequate.

"Some have invested in new technology and purchased equipment and all that becomes redundant," Mr Walsh said.

"When you look at the jobs lost, $4.5 million doesn't work out at much per person.

"The VEAC report said if these jobs were lost it will have significant impact and condemn families to inter-generational welfare dependency."