A FINANCE package to fund new school buildings has been introduced by York-based modular building manufacturer Yorkon.

The company, part of the Shepherd Group, has joined forces with UniLink to allow local authorities to fund new school buildings by using an operating lease arrangement. The scheme offers an alternative to Private Finance Initiatives, and has already been used to create a £5 million primary school in Scotland.

The school buildings are constructed off-site by Yorkon and then leased by local authorities.

The company now hopes the package will take off and be used in schools across the country.

Keith Blanshard, director and general manager of Yorkon, said: "Modular construction has many advantages. The facility to manufacture a building off-site, in a controlled environment that is not subject to the vagaries of the weather, means fewer on-site problems, improved quality and better cost control."

He added: "Schools can also be designed so that future extension of the building can be undertaken with minimum disruption to the running of the school. This flexibility can then be reflected in the leasing arrangement."

Updated: 09:33 Wednesday, February 25, 2004