Australian carbon debate a joke

I don't often comment on politics, but this one really irked me.

The Australian steel makers (Bluescope and One Steel) complained about the proposed carbon tax, stating that it will increase their production cost by ~AUD40/t of steel at a carbon price of AUD20/t.

The government responded by stating that the numbers are incorrect, and that the increase will only be AUD2/t.

Let's get this straight. For every tonne of steel produced, about 2 tonnes of CO2 is produced (This varies from plant to plant, but only in the range of 1.8 to 2.5). So for a AUD20/t CO2 carbon tax, that is 20 AUD/t CO2 x 2 t CO2/t steel = AUD40/t steel.

Come on, Gillard Government. We are not all idiots. You will harm the manufacturing industry, and this may have consequences in terms of job losses and the general need to support people I am not sure you are prepared for. Or are you just lying to the general populous?