YORK engineering firm Jarvis was at the centre of a political storm today

after winning a £1.9 million government contract to rescue failing schools.

Teaching unions reacted with anger after learning the company - currently at the centre of a police investigation into the Potters Bar rail crash - had secured the three-year deal.

Harrogate MP Phil Willis, the Liberal Democrat education spokesman, said: "What worries me most about this particular contract is that Jarvis has no track record in this area whatsoever, yet are trusted with one of the most sensitive areas of educational development."

The contract was awarded to Jarvis Educational Services Ltd, which was set up last November and is 88 per cent owned by Jarvis. It was handed out in January but was not publicly announced.

The deal is to help advise the 700 worst-performing secondary schools in England and Wales. Jarvis has never had an educational contract of this type before.

David Hart, general secretary of the National Association of Head Teachers, said: "I think this is the most extraordinary decision that could have been made.

"I can't think of a more inappropriate way of trying to deal with schools which are seeking to improve their performance."

Jarvis has already run dozens of school construction projects under the private finance initiative.

A Department for Education and Skills spokesman said: "They will identify the good practice of the best local authorities which will be disseminated to the under-performing ones.

"There will also be school improvement advisers. If LEAs are in difficulty, they will be able to work with schools."

Seven people were killed and 60 injured at Potters Bar when a set of points came loose and derailed a commuter train on May 10 last year. Jarvis was the company paid to maintain that stretch of track on behalf of Railtrack, but blamed sabotage. The police investigation is continuing.

Updated: 11:36 Monday, April 28, 2003