A highly infectious and lethal fish disease dubbed the "foot and mouth for farmed salmon" has been confirmed in Scotland, it was revealed yesterday.

Following routine inspections, an occurrence of Infectious Salmon Anaemia (ISA) has been located at one salmon farm and is also suspected at two further sites in the Burra area, west of Shetland.

The Scottish Government has set up a national disease control centre and is taking action to control the spread of ISA, which does not affect humans but can cause serious damage to stocks of farmed Atlantic salmon in seawater. A previous outbreak a decade ago coast the Scottish salmon industry £37m and 200 jobs, with leading supermarkets refusing to sell the fish if it had originated from any of the 35 farms suspected or confirmed as having the disease.

The farm where ISA has been confirmed has been empty of fish since December 21. A control zone and a wider surveillance zone have been established, with movement restrictions in place.

A team of fish health inspectors is being sent to Shetland to investigate the affected sites and advise salmon farming firms there on how to operate under the restrictions.

Investigations into the source and potential spread of the disease will be carried out. Brian Davidson, chairman of the Association of Salmon Fisheries Boards, representing the wild salmon industry, said: "Any ISA outbreak is of deep concern and our fears would be of the devastating impact of collateral damage on wild stocks."

David Sandison, comp-any secretary at the Scottish Salmon Producers' Organisation, said salmon producers were concerned but insisted the industry had benefited from the lessons learned from a previous outbreak in the 1990s. He said: "We are not relaxed by any means, and any outbreak of ISA is deeply concerning, but we learned a lot from the previous outbreak.

"As long as we continue to monitor and to work with the fish health inspectors, as well as putting in appropriate checks and measures, we are confident this can be contained."

Environment minister Mike Russell said he had spoken to the company involved as well as other salmon farming interests in the previous 24 hours.

He said: "Whilst this disease is serious, much was learned from the successfully contained outbreak in 1998-99. We will be applying those lessons vigorously with the clear aim of containing and then eradicating the disease."

Tavish Scott, MSP for Shetland and Scottish Liberal Democrat leader, said he was "dismayed" a farm had a confirmed case of ISA.

He said: "I vividly recall the difficulties for the Shetland salmon industry 10 years ago when ISA caused enormous financial problems for fish farmers. But the industry today in Shetland is very different. I hope quick and decisive action by the farms, working with the regulatory authorities, can deal with this incident effectively."

The disease, first recorded in Norway in 1984 and then in Canada in 1996, reached Scotland in May 1998 at a salmon farm run by a Norwegian firm, Hydro Seafood, on Loch Nevis, near Mallaig. That year, 10 confirmed cases were established.

Scottish Executive investigators at the time suspected the disease was imported on inadequately-disinfected equipment from Norway, although this was difficult to prove.

However, virtually all subsequent outbreaks were traced back to the farm.

After protective measures were introduced, the figure fell to just one in 1999 and by 2000 the industry had a clean bill of health.

The disease can be spread by blood, mucus and sea lice in the water.

The outbreak comes at a critical time for the salmon industry.

Fears remain for hundreds of jobs in the Highlands and Islands after Norwegian-owned Lighthouse Caledonia asked for a suspension in its shares after its Dutch feed supplier cut credit terms from 90 to 30 days.

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