The Australian Aluminium Council (AAC) has claimed Climate Change Minister Greg Combet tried to defuse concerns from the industry over the proposed carbon tax with misleading commentary.

Mr Combet told the National Press Club that under the original scheme, floated in 2009, the cost of aluminium production would have increased by $18.70 out of a $2500 market price.

AAC executive director Miles Prosser said Mr Combet’s analysis was misleading.

He said the carbon tax had the ability to create a large dent in the profitability of aluminium smelters such as Portland’s Alcoa site.

“The impact of carbon price will be felt on profit and not revenue,” Mr Prosser said.

“(Mr Combet’s) simple calculations miss many of the costs of a carbon pricing regime, including higher pass through of electricity costs, higher domestic gas costs and any caps or constraints on permit allocation to industry.”

Wannon MP Dan Tehan said the latest figures added weight to the argument against the federal government’s carbon tax.

He said there was growing concern within a number of industries about how they would manage to remain profitable if the emissions reduction proposal was introduced.

“The aluminium industry has been looking to work with the Gillard government and the government have turned their back on them,” he said.

Corangamite MP Darren Cheeseman said the federal government was committed to job security for workers and to helping trade-exposed industries through the transition.

“Alcoa has been very professional in the way they have approached these negotiations, but obviously their interest is to maximise concessions for the company, whereas the federal government has a broader responsibility to the whole community,” he said.

asinnott@standard.fairfax.com.au