THE organisation that gives a green tick to some of the biggest timber and paper companies has voluntarily suspended most of its operations after a bruising stoush with environment groups over its approval of the paper brand Reflex.

SmartWood, a division of Rainforest Alliance, gave up its ability to issue chain-of-custody certifications following an investigation into its audit of Reflex manufacturer Australian Paper by the Forest Stewardship Council (FSC), an international governing body.

In addition, SmartWood had also certified Tasmanian forestry group Gunns, plantation owners Hancock, tissue company Kimberly-Clark and Norwegian paper group Norske Skog, which supplies the bulk of newsprint used in Australia.

The voluntary suspension was accepted by Accreditation Services International, which was auditing SmartWood on behalf of the forest council, on September 1, and remains in force until lifted by ASI.

''This is the first time in the development of FSC Australia that this has occurred,'' the forest council chief executive, Michael Spencer, said.