THE state government and Alcoa have stitched up a secret deal to
trigger more federal compensation to pay for Victoria's
increased costs under the carbon tax, generated by subsidising
the aluminum giant's electricity use.  The deal could also
deliver tens of of millions of dollars in extra government
benefits to Alcoa at the expense of Victorian taxpayers.
Details of the deal are shrouded in secrecy, with the two
parties signing a confidentiality agreement. The value of
financial dealings over electricity between the government and
Alcoa have long been undisclosed.  Alcoa spokeswoman Nichola
Holgate said a ''mutually beneficial agreement'' had been
reached earlier this year, but would not provide details, citing
confidentiality.  The deal follows a federal-state $44 million
bailout of Alcoa's Port Henry smelter at Geelong earlier this
year. Alcoa has also received just under 6 million free carbon
permits as federal compensation for the carbon tax.  Alcoa's two
smelters in Victoria - at Point Henry and Portla