THE SCOTTISH salmon farming industry needs to innovate to retain its position as one of the leading players in the world industry, according to the sector's trade organisation.

Sid Patten, chief executive of the Scottish Salmon Producers' Organisation (SSPO), said moves to retain the Scottish industry's competitive position are vital given recent comments from the Bush administration.

Carlos Gutierrez, the US commerce secretary, announced that the US government wants to expand the farming of salmon, shellfish and saltwater fish in its federal waters.

Patten urged regulatory authorities here to allow the industry to flourish with less restrictions. He said: "It appears from talking to my opposite numbers in other countries that the UK has the toughest regulatory environment of all the major fish farming nations."

And the SSPO is going to have a study conducted which compares regulations in the UK with other major fish farming countries such as Norway, Chile, Canada, the Faroes, Ireland and the US.

A call to lighten the regulatory load is going to be made in the SSPO's Scottish parliament election manifesto.

Patten said: "While we recognise the need for regulation of the industry, we would urge all political parties to consider that the salmon fishing industry is already one of the most regulated industries in the world and believe this should be taken into account when considering new measures."

Patten was launching his call after a recent visit to Boston where he held meetings with the leading salmon trade bodies of Canada, Chile, Norway, Ireland and the US.

He said that while fish farming had been viewed as a key part of consumers' appetite for seafood around the world salmon farming has yet to take off strongly in the US.

"With ambitious countries like the States now wishing to expand its market share, Scotland must continue to innovate in production methods and added- value products," Patten said.

"We need to redouble our efforts to grow in line with the increasing demand and compete with other producing nations to maintain our position as one of the leading players in this growing global industry."

The annual worldwide consumption of farmed fish has topped 45 million tonnes and is estimated to be worth about $63 billion (£31.87bn) a year. In 1980 the aquaculture industry accounted for 9% of fish consumed by people; now it represents 43%.

Scotland is currently the third-largest salmon farming country in the world with about a 10% market share.

Patten added: "The proposal from the Bush administration has the potential to benefit many individuals and the US economy greatly.

"To continue to bring the huge economic benefits of the rapidly growing salmon market to Scotland plc, the regulatory framework must be improved in order to attract further investment."