London: A British entrepreneur's proposal to harvest the fur of koalas killed in the bushfire catastrophe and sell it as a public fundraiser has been condemned as "grotesque" and "sick".

Ryan-Mark Parsons suggested skinning the animals and making scarves for wealthy fur owners during a morning television appearance that has prompted widespread ridicule and thrown further international attention on the devastating toll the disaster has inflicted on Australia's world renowned wildlife.

"I don't think it is a sick idea because you have to take into account that the purpose of this is to raise money for the injured animals in the rescue centres," the former Apprentice (UK) contestant said.

"I'm not saying we need to slaughter koalas. In fact I love koalas. If there was a koala here I'd hug a koala."