We can only go on the figures at hand, and AU is doing just fine. The last 3 months trading conditions improved, profitability, employment, and trading conditions. Terms of trade increased 42% since 2004 191 billion investment $ awaiting approval. 236 billion underway.

Mr Abbott is a desperate man, sprouting rhetoric in melbourne today, at the same time our federal Govt and the Victorian govt; is talking to Alcoa at Geelong. Alcoa is having trouble with the high AU dollar and a shrinkage in Aluminium prices. Of course Tony is blaming the carbon price, in which Alcoa have almost been accredited for. Deliberate misinformation coming from a desperate man, whose time for destabilizing the incumbent govt; expired before xmas. Feeding the press on lies, is about as low as one can get. In parliament this noalition will not even mention the economy of AU, knowing they will get belted.

Alcoa is busy reviewing its future operations, part of what it is discussing with the government is protection against the carbon tax.

Alcoa cited the high dollar, low metal prices and "input costs" the biggest of which is electricity. Notably Rio and BHP are starting to write down their smelters prior to the carbon tax.

I would imagine that the negotiations with the government would go badly if Alcoa directly mentioned the carbon tax.

SM Alcoa has been given free carbon credits. to the tune of around 90%
Alcoa has pulled out of America also. The high dollar plus the falling commodity price for aluminium has decreased their viability.

Alcoa is not a big emitter, it buys huge quantities of electricity, which at the wholesale price is set to nearly double.

Carbon credits are not much use.

The Victorian coalition govt is in the process of eliminating 5000 public sector jobs. At the same time as talking to Alcoa.
Alcoa is already being subsidized $300 / ton for electricity. Alcoa doesn't want to maintain the plant. The horse has been dead for some time. Mr Abbott is not going to back the abolition of subsidy of medical insurance for well healed people. He says they need the welfare.