RADCLIFFE'S two high schools could be demolished and replaced with a new "state of the art" establishment.

The plans for Coney Green and Radcliffe High are part of borough-wide proposals which could bring in £40 million to improve local schools.

Governors are being consulted on the proposals, which could be submitted to the Government by Christmas.

Council bosses are considering raising the necessary cash through the controversial Private Finance Initiative (PFI).

Councillor Steve Perkins, executive member for lifelong learning, said councils could not borrow the vast sums necessary to bring schools up to 21st Century standards.

Under PFI, a private developer would put up the money to build the new school and run it for a fixed period, say 25 years, before handing it back to the council. During this time the council will pay back the capital costs and provide annual sums to the company to maintain the school.

But the PFI has been criticised as privatisation of public services, one which ultimately costs the taxpayer more. Trade unions have also complained that staff taken on under PFI schemes suffer worse pay and conditions.

Coun Perkins said a new school could be built on either of the two Radcliffe sites, but a third location would be cheaper and not cause disruption while it was being built.

He was unsure whether the current school sites would have to be sold to part-finance the scheme.

The Radcliffe councillor stressed that no decisions had been made yet, and there were a lot of steps to go through if the PFI project was to succeed. New schools are unlikely to be built before 2006.

The council hopes that major improvements to schools will mean they can be used by the wider community, and attract investment from the public and private sector to help social and economic regeneration.

Coun Perkins denied that Bury was privatising its schools, saying that the council would still employ the teachers and run the educational side of things.

"People have raised concerns about PFIs elsewhere having problems," he said. "We would need to make sure any deal is properly structured, provides good value for money, and ensure that staff are not affected."

But he added: "We are in the business of providing education, and this provides an opportunity for ways to do that, keeping up to date with modern facilities.

"It's a big opportunity and we need to take advantage of it to keep up our standards of education."

Governors at Radcliffe High and Coney Green were unavailable for comment when the Radcliffe Times went to press.The Governing bodies from both schools will be meeting tonight to discuss the matter.