A MAJOR shake up in the regulation of grant maintained schools has been ordered in the wake of the sacking of Bolton's first opted-out school headmaster.

Government sleeze buster Lord Nolan wants action to prevent the problems which hit St James's CE School, Farnworth, when Chris Hampson was fired last year.

He wants new powers for the Ombudsman and The Funding Agency for Schools to ensure that grant-maintained schools are run properly. Lord Nolan, speaking at his committee on standards in public life, said he wanted a system that enabled early intervention when problems arose.

And he said that evidence about Mr Hampson's dismissal and the subsequent settlement of an unfair dismissal claim had been considered in drawing up the recommendations.

Lord Nolan said three bodies meddled in the affairs of opt-out schools: the Department of Education and Employment, the schools inspectorate OFSTED and The Funding Agency.

In future, power should be concentrated in the agency, enabling it to intervene quickly in disputes.

At present, Lord Nolan said a highly motivated governor or group of governors could effectively take over the running of the school and ride rough shod over the wishes of others. His plans would promote conciliation and mediation in the grant maintained sector.

The agency should set up regional committees with head teachers from outside the area to deal with discretionary funding and governors, and should produce a model code of practice for opt out schools.

It should also ensure that key decisions - the appointment or dismissal of a head, budget making, and major capital spending - cannot be made without the support of a broad consensus of governors, including parent and staff representatives.

He urged the local Government Ombudsman to be given new powers to rule over the admissions policy of opt-out schools. LORD Nolan is to start an inquiry into standards in local authorities in the next few weeks. Today he urged training and enterprise councils to publish details of any contracts awarded to companies linked to their directors.

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