A bill to introduce national laws based on the Northern Territory's seafood-labelling legislation "would not work in Australia", Northern Territory Senator Nigel Scullion says.

In response, the NT Seafood Council has expressed hope any "technical issues" with the labelling could be overcome.

The bill, which is expected to fail in its current form after it is voted on by the Senate in August, intends to change food-labelling laws so that country of origin is labelled on seafood sold in restaurants or takeaway shops.

Under Australian law seafood country of origin is only labelled at markets and supermarkets.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 4 minutes 57 seconds 4 m 57 s NT Country Hour's coverage of the Senate debating seafood labelling laws ( Matt Brann ) Download 2.3 MB

The new law is based on legislation introduced in the NT in 2008, which requires restaurants to clearly indicate if seafood they are selling is imported.

Independent South Australian Senator Nick Xenephon introduced the bill and said it was needed to give consumers an informed choice in takeaway shops and restaurants.

On Thursday, Country Liberals Senator Nigel Scullion said the bill had good intentions, but would not work because of food regulations in Australia.

"One of the challenges, of course, to this legislation being adopted, is it is actually the responsibility of the states and territories," Senator Scullion said.

"And the Northern Territory Government has already provided some leadership in that regard," he said.

NSW Nationals Senator John Williams also supported the bill's intent, but said fish-labelling regulations were a matter for the Australia and New Zealand Ministerial Forum on Food Regulation.

Trade deals with New Zealand were another catch in the plan, he said.

This sparked an angry response from firebrand Tasmanian Senator Jacqui Lambie, who said the National Party was now a Liberal Party poodle.

"I will note to put my state and fishing industry first," Senator Lambie said.

"And unlike the Nationals, whose vote on this legislation shows they have gone from being the bush's blue heelers in this place ... have now become the Liberals' poodles."

"They are poodles missing a vital part of their male anatomy."

Labor Party Senator Nova Peris said amending the bill would now be debated with her Labor colleagues.

"We will take the discussion to Labor caucus, now that we know where people sit," Senator Peris said.

She called on the Coalition to follow suit.

"This cannot happen without the Australian Government to start those conversations with New Zealand so we can ensure that this possibly passes in August."

About 70 per cent of fish sold in Australia come from overseas.

A statement from the Department of Health said any new standards, or changes to standards, "must be presented to the Australia New Zealand Ministerial Forum on Food Regulation for approval".

Debate on the bill has been adjourned until August 12.

'I don't care what it looks like as long as it works'

On Friday, NT Seafood Council chairman Rob Fish said the "technical issues" with the seafood labelling bill could be overcome.

"To hear both sides of politics and the independents thoroughly endorse the concept of labelling is a great step forward," he said.

"While we've got the intent there and everyone is supporting it, I'm comfortable we'll find a way of getting this labelling across Australia."

"The Bill's been given some time [for politicians] to look at the problems - August 12.

"If there's a will to fix it they can be fixed.

"To be honest, I don't care what the Bill looks like in the end as long as it achieves the labelling."