The Federal Government should impose new regulations on the oil industry before placing bans on fishermen, the Amateur Fishermen's Association of the Northern Territory says.

It is pleased the Government has started an inquiry into the oil spill in the Timor Sea.

But the association's president, Chris Makepeace, says the Government has moved too slowly on regulating the oil industry.

"At the same time as this is happening the Federal Government is planning to have areas around our coast here where recreational fishermen are not going to be able to fish," he said.

"I mean, we've called on Peter Garrett to deal with some of the big issues like oil well blow-outs before he worries about what we might or might not be doing in near pristine seas."