Scottish Government plans to lease off public forests are to be dropped, Labour claimed on Sunday.
Labour's rural affairs spokeswoman Sarah Boyack said "another humiliating climbdown" was imminent for plans which had been universally condemned.
In a speech to the Scottish Labour party conference in Dundee she said: "For the sake of our wood processing industries and for the sake of rural jobs, I demand that the SNP admit they were wrong all along and dump these proposals this week."
The Scottish Government had argued that £200 million could be raised from leasing out a quarter of forests, with the cash then used to speed up tree planting to tackle global warming.
But Ms Boyack told the conference: "Their proposals to privatise a quarter of Scotland's public forests for 75 years have shown the SNP in their true colours.
"The proposals were dreamed up by the Rothschilds - Thatcher's favourite bank.
"So the SNP walk where even Thatcher feared to tread."
Ms Boyack said the proposals would threaten rural jobs and had "embarrassed" some Nationalists.
She added: "The SNP's position is now completely untenable. Thousands have signed up to petitions demanding the proposals are dropped.
"These proposals have been universally condemned and I predict there will be another humiliating climbdown within hours."
The conference also heard a call by Labour for the Scottish Government to back a bid by a Glasgow-based company to become Europe's leading manufacturer of electric cars.
Labour economy spokesman John Park said Allied Vehicles, which make electric taxis, vans and minibuses, had asked the Scottish Government to invest £15 million which would buy 1000 vehicles and create 100 jobs.
Mr Park said the batteries that power the vehicles are made in Dundee.
He added that the firm wanted local authorities to invest in recharging stations to help make the vehicles viable for taxi firms and other companies.
He said the £15 million would make Scotland the European leader in green car production.
Mr Park said: "I believe they should get it.
"It would give us something we haven't seen in this country since the Hillman Imp rolled off the production line at Linwood over 30 years ago and it would generate jobs here in this city."
Gerry Facenna, chairman of Allied Vehicles, said: "Electric power offers an ideal solution, especially for congested urban areas where traffic is stop-start for much of the day with zero emissions of any type.
A Scottish Government spokeswoman said finance secretary John Swinney visited Allied Vehicles in December.
She said: "The Scottish Government supports the role of companies such as Allied and others within the sustainable transport group to aid the development and up-take of low carbon vehicle technologies."
