The association which listed Portland as a prime location for a nuclear power station is disappointed the state government continues to oppose the energy option.
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Dr John Harries, secretary of The Australian Nuclear Association (ANA), said it was disappointing a recent inquiry resulted in a decision to keep in place the prohibition on the power source.
"The inquiry's report is a good summary of evidence received, but the ANA is disappointed the inquiry did not recommend removing the historic prohibitions on nuclear power in Victorian legislation," Dr Harries said.
"Removal of the Victorian ban would increase public discussion of the merits of nuclear power as a viable generator of low-carbon, baseload electricity which needs no energy storage."
He said the association believed discussions about the cost of nuclear power were a "delaying tactic by those opposed to nuclear."
"The prohibition needs to be removed so that realistic nuclear power projects can be properly investigated and nuclear power plants considered on their merits," Dr Harries said.
He said nuclear generation was the second largest source of zero carbon electricity behind hydropower.
"To arbitrarily prohibit nuclear technology will make much harder to get Australia to net zero carbon, especially with Australia's limited access to hydropower," Dr Harries said.
Member for Western District Bev McArthur said "scaremongering by alarmists" had led to the decision made not to remove the prohibition.
She said she believed the politicians who opposed it had an "old-fashioned, ill-informed" view.
"Even the union movement understands the need for nuclear," Mrs McArthur said.
Mrs McArthur said Cold War scaremongering focused on isolated nuclear disasters - such as Chernobyl and Fukushima - and the linking of nuclear power generation with nuclear armament and war.
"Chernobyl was caused by human error in an antiquated reactor constructed in the 1950s and run by the Soviet Union Communists," she said.
"You couldn't imagine a more different scenario in Victoria with modern technology and standards," she said.
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