TWO major unions are demanding that private companies are kept out of education after a building firm collapsed leaving a primary school's new home unfinished.

The calls -- made by the National Union of Teachers and Unison -- came amid confusion over the future of Castle Hill Primary School, which was due to move to a new £10m site on Tonge Moor Road in June.

Cllr Nick Peel, chair of the policy development group set up to oversee the project, said he was still hopeful the school would be able to make the move in time for the start of the new school year in September.

However, Tom Burton, of receivers Ernst and Young, said it could be "some weeks" before builders were allowed back on to the site to complete plastering, wiring and landscaping work after the company called in the receivers.

The scheme had been hailed as the future of education in Bolton after council leaders struck a deal with private developer Meville Dundas.

The Glasgow based firm agreed to build the new site and then lease it back to the local authority over the next 30 years.

Council leaders have now told the school's headteacher that his school will be allowed to stay at its present home on Castle Hill Street until the new building is ready.

The complex is to include a library, sports facilities, a 268 space car park and a youth club, which was also due to open in June. Barry Conway, secretary of the Bolton branch of the NUT, accused the council of "acting recklessly" in allowing a private company to become involved in delivering education services.

He said teachers and pupils were "devastated" after working hard to prepare for the move.

"This has highlighted the council's flawed policy in regard to private finance initiatives which has created this mess," Mr Conway said. "Education is not something that can be bought and sold like some trinket on a stall in a market. We told them two years ago that private companies were sticking their noses into the public trough not because they had any concerns over education but because they were after a profit."

Martin Challender, Bolton Metro branch secretary of Unison, said his union was also opposed to the scheme.

He said: "This fiasco shows the dangers of handing over responsibility for the future of our children's education to private developers.

"Even well established companies can collapse in the current economic climate putting our children's future at risk."

However, two of Tonge's Labour ward councillors -- Cllr Frank White and Cllr Peel -- have defended the deal.

Cllr Peel added: "Everything is being done to keep delays to a minimum. You cannot blame the public finance agreement because this happened to businesses all the time."