BEECHWORTH chamber of commerce has mounted a concerted campaign to return the town's historic prison to public ownership.
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The Beechworth Gaol was opened in 1864 with two of the state's most notorious criminals Ned Kelly and Carl Williams among its many inmates.
The heritage-listed 3.55 hectare site was sold by the Victorian Government for around $1.7 million in 2004 to developer Sam Lawson, who presently runs jail tours.
Chamber president Elizabeth Mason kick-started the campaign to return the jail into public hands by fronting Indigo Shire this week seeking support.
She said the state government had to step up and reclaim the jail and had already fired off a letter to Premier Daniel Andrews about its pending sale at auction on November 27.
"It is Ned Kelly's jail and in my view one of the most iconic and valuable buildings in the country," she said.
"I liken it to the Colesseum in Rome and if we don't protect it for future generations it will be a huge loss to the country.
"We have appealed to Daniel Andrews to say this needs to be taken into protective custody.
"The time is now to right a very big wrong."
Selling agent Rod Devlin said the property could fetch more than $2 million and was supportive of its return to public ownership.
"It would be a great outcome not only for the jail, but also for the town," he said.
"I'm aware of that push and I am supportive of that push."
Indigo Shire mayor Bernard Gaffney has ruled out the council being a potential buyer of the Beechworth Gaol.
"I wouldn't think so at this stage," he said.
"It is a matter for the shire remaining sustainable and remaining in a sound financial position.
"I couldn't see us going into long-term debt for the purchase."
But Cr Gaffney said the shire was prepared to lobby state and federal governments on behalf of the chamber.
He said Benambra MP Bill Tilley had already been made aware of the push which would also be raised with Victorian planning minister Richard Wynne and federal MP Michael McCormack in upcoming meetings.
Mr McCormack is the parliamentary secretary to the finance minister.
