The owner of a fishing business has accused Fish and Game of behaving like a commercial competitor.

Graham Lee is waiting on a licence from the Ministry of Primary Industries to open a fishing facility near Wanaka.

However, Fish and Game have objected to the proposed facility because of the environmental damage it may cause.

Lee said the government body is using concerns over pollution as a smokescreen as his business may cause losses to similar facilities Fish and Game runs.

"It's obviously been put in there to try to eliminate competition, such as ours, for that recreational fishing dollar," he said.

"Why do they oppose trout farming?" he asked. "The simple reason is that if you want to go trout farming in New Zealand, you must buy a fish license from Fish and Game."

Lee alleges the organisation is being driven by purely commercial interests.

However, Fish and Game insists it is opposing the plan on the grounds that runoff could damage a nearby creek.

Otago Fish and Game chief executive Neil Watson believes Lee needs to do his homework.

"If [Mr Lee] were more thorough in his assessment of effects, he might be able to demonstrate that a certain stocking rate is not having impacts on water quality," he said.