The Government was initially unclear about which industries would be incorporated in the scheme, but has now announced fuel will be included.

This will potentially add further strain on transport companies alr-eady suffering from higher petrol prices.

The Government has promised to soften the blow with a cent-by-cent reduction on the Govern-ment fuel excise to offset ETS increases, but it is only guaranteed for the first three years of the scheme (which will begin in 2010).

Gommers Transport manager Des Gommers said the full cost of an ETS would be unknown until the Government released more detailed figures, and said he was worried about the implications for consumers.

“The consumer is going to have to pay for the increased costs the Government is going to implement,” he said.

“Unfortunately, the transport industry is in a position where it has to pass costs on (to the consumer) otherwise it will not survive.”

Transport Workers’ Union of Australia South Australian Branch secretary Alex Gallacher said the Government was rushing into an ETS.

“My strong view is that we are going a little too quickly into this carbon trading,” he said.

“Anything that is going to put up fuel prices or interest rates when we already can’t control these prices is a worry.”

But Climate Change and Water Minister Senator Penny Wong said every cent raised from the sale of permits would be used to help households and business as they made the move to a “clean energy future”.

“We will periodically assess the adequacy of this adjustment measure (fuel excise offset) for three years and adjust this offset accordingly,” she said.

“At the end of the three-year period the measure will be reviewed.”

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What is the Emissions Trading Scheme?

THE Emissions Trading Scheme is a cap on the amount of carbon pollution created by industry.