LINDA MOTTRAM: The Federal Government is taking a stand against foreign investors who want to capture Ned Kelly's armour. 
The only piece still in private hands goes to auction next month, and there's strong interest from collectors in the United States and Ireland.

But, as Fiona Reynolds reports, the government will invoke a Federal Act to prevent the bushranger's armour from being sold overseas.

FIONA REYNOLDS: The left shoulder plate is reputedly stained with Ned Kelly's blood. It was souvenired by Constable Charles Gascoyne, who wounded the bushranger in the arm during the Kelly gang's last stand at Glenrowan in 1880.

The policeman's family sold it to a private collector, and now the historic piece is on the market. The shoulder plate will be auctioned by Christies in a month's time and is expected to fetch up to $200,000. Interest from Ireland and the United States prompted Christies to seek an export permit. But the Federal Arts Minister, Peter McGauran, will today use a Cultural Heritage Act to prevent the armour falling into foreign hands.

PETER MCGAURAN: Whether you regard Ned Kelly as one of Australia's greatest heroes or a cop killer, the fact is that he's part and parcel of our cultural heritage. And consequently this shoulder plate, which will be the last remaining jigsaw puzzle to the entire armour worn by him, needs to remain here.

FIONA REYNOLDS: But who's likely to have the money to buy this armour in Australia?

PETER MCGAURAN: It's beyond the reach of any of our public collecting institutions. And that's why the Commonwealth has funds put away in the National Cultural Heritage Account so that where the Commonwealth does bar the export of an item, and therefore deprive the owner of the highest market price, we can assist an institution to acquire it. At a fair price, mind you. It's not an open cheque book.

FIONA REYNOLDS: The State Library of Victoria is the likely recipient, after making an unsuccessful bid for the piece. It already holds Ned Kelly's helmet and breastplate, and the Melbourne Museum has agreed to lend the right shoulder plate.

The library also expects to swap with the Police Museum, Steve Hart's backplate for Kelly's.

State Librarian, Fran Alcock, says the left shoulder plate is the missing piece.

FRAN ALCOCK: Our library is the known repository for Kelly material in the nation, with the Jerilderie letter and the complete set of armour photographed and a whole lot of other material of great importance.

FIONA REYNOLDS: So when you have the whole collection together, you're hoping then to put it on display?

FRAN ALCOCK: We certainly will. It will be one of the great pieces in our 'History of Victoria' exhibition in the domed reading room, which will open in 2003.

LINDA MOTTRAM: Fran Alcock, Chief Executive Officer at the State Library of Victoria.