CHAMBERS of commerce in the Yarra Valley organised a public rally for last night at Yarra Glen's Unity Church Hall to protest Yarra Ranges Council's boycott of Reflex paper.

Lilydale, Yarra Glen, Mt Evelyn, Healesville and Warburton chambers of commerce are campaigning to have the council withdraw its Wilderness Society ethical paper pledge to boycott Reflex.

Councillors voted on April 27 to sign the pledge to protest Australian Paper's use of native forest timber pulp to make Reflex paper.

Due to the council boycott, the state government's forests agency, VicForests, abandoned a plan to relocate its headquarters, and thus a number of staff, to the Yarra Ranges region.

Lilydale Chamber of Commerce president Alister Osborne said Monday's meeting aimed to send a message to the council that negotiations with VicForests should resume.

"The council has said there is no public support for having the motion rescinded," Mr Osborne said. "We hope this meeting will show council that there is public support and that we want those 80 jobs in the Yarra Ranges."

All chambers of commerce in the region, except Warburton, have sent a

letter urging immediate discussions between the council and VicForests.

Cr Len Cox vigorously denied that the council had said there was no public support for revoking the pledge. He said the issue had grown "grossly out of proportion".

"There is a degree of paranoia surrounding the issue and I do not understand it.

"It was an innocent and unanimous decision by all council members to sign the pledge. We have used another brand of 80per cent recycled and 20per cent plantation Australian paper for years. We should all be entitled to chose the paper we use in our own workplace."

"Ill-informed people have been throwing [about] completely inaccurate numbers of potential jobs lost. The reality is most of the employment positions in the new office would have been kept by people who already work for VicForests and who followed the office to the Yarra Ranges. There would have been very few new job vacancies."

Mount Evelyn Liberal MP Christine Fyffe said she was disappointed the council had adopted an "impractical Green ideology".

As five local chambers of commerce had rejected the council's move, it was clear the council was not listening to the businesses of the Yarra Ranges. "I would strongly urge council to reconsider its position, and cease its ridiculous boycott of Reflex paper."