Opposition councillors are calling for an investigation into a multi-million-pound city schools deal.

Green councillors want the £105 million private finance initiative (PFI) to upgrade and maintain four Brighton schools to be scrutinised after news the city council is planning to shut one of them.

Brighton and Hove City Council is recommending East Brighton College of Media Arts should be closed because of falling pupil numbers.

Such a move could cost the council up to £17 million in penalties to private contractor Jarvis.

Coun Georgia Wrighton, Green party education scrutiny member, said: "We have to find out how the council got it so wrong over the number of pupils at the school.

"It is facing closure and the community is facing a great loss.

"I believe the spiralling costs of a flawed contract is driving the debate around closing the school.

"PFI is earning an increasingly bad reputation. Private contractors are making huge profits when they take over delivering public services.

"There is no place for private profit in public services and Greens in Brighton will resist any further privatisation attempts."

The 25-year contract, signed two years ago, handed over responsibility for upgrading and maintaining the college, Varndean, Dorothy Stringer and Patcham High Schools to Jarvis.

A PFI deal means the private contractor pays up-front for building works and facilities maintenance and then collects the money plus profits back from the council over an extended period.

Coun Keith Taylor, convenor of the Green councillors, said: "The council has had its fingers badly burnt over the college.

"Some estimates of buying out of the private contract are as high as £17 million and that's simply money we don't have."

The Green Party will appeal for scrutiny at the education overview and scrutiny board meeting on September 23.

David Hawker, director of children, families and schools at the council, said it would be improper for him to comment on the likelihood of an appeal.

He said: "This is a matter for the panel to decide. It isn't an executive function of the council."

Councillor Pat Hawkes, who chairs the children, families and schools committee, said: "The committee has only now taken the view to consult and we really ought to go on to that consultation and not be stopped in our tracks by scrutiny."

Tuesday September 16, 2003