A LOCAL authority is considering a controversial plan to use private finance initiative (PFI) to build and repair its schools.

Durham County Council is facing a huge backlog of repairs, and some older buildings are unsuitable for modern needs.

The council says in some cases there is an "adverse impact" on educational standards, but it does not have the money for improvements, and funding from the Government would not cover the costs.

The repairs and maintenance backlog would cost £89m compared with available funding estimated at £45.5m.

A further £196m needs to be spent making buildings more suitable for modern teaching.

Neil Foster, lead cabinet member for education, said: "The PFI route now constitutes a major additional source of capital approval from the Government.

"Whatever the views on PFI - and views differ as we all know - it is increasingly becoming a front-runner in the funding stakes.

"Serious consideration needs to be given to urgently pursuing a PFI package which will address the capital needs of our school building stock on a fast timescale.''

The cabinet agreed to explore the possibilities of PFI and will consider a report in September that will outline proposals for schemes to remove surplus primary places. During the next three years, between 700 and 1,000 surplus places could occur in primary schools.

The council is planning to consult parents, schools, children, trades unions and the public.

PFI has proved controversial, particularly in the health service, where it is funding new hospitals. Critics claim the system, in which private firms finance and build facilities and lease them, cost more in the long-term than if they were built with public money.