SCOTLAND'S first privately sponsored technology academy is to be

established on the site of Our Lady and St Francis' all-girls secondary

school in the East End of Glasgow.

The Labour group in Strathclyde region yesterday flew in the face of

official party policy on technology academies by agreeing in the course

of a heated meeting to accept a #650,000 bid from Glasgow Technology

Academy Ltd for the school, which was closed last June during the local

authority's controversial schools' closure programme.

The school, which was up for sale, is owned 60% by the region and 40%

by the Franciscan Sisters, who built it more than 100 years ago. The

academy is expected to cost between #7.5m and #10m to make ready for

opening in August next year.

Pupils, who will be given a free education, will receive up to 50%

more maths, science, and technology teaching than in comprehensive

schools. The school day will accordingly be longer.

Lord Forte, of hotel and catering group Trusthouse Forte, has given

#1.5m to the initiative while the Scottish Office has set aside #3.3m to

develop the academy and #800,000 a year to meet the running costs,

leaving an initial shortfall of at least #2.5m.

Now that the company has finally acquired a site the final piece in

the funding jigsaw is also thought to be in place. The identity of the

second private benefactor is unknown but it is likely to be a

London-based company with Scottish connections and cash to spare.

Councillor Christopher Mason, a Liberal Democrat member of the

region's education committee, claimed last night that the local

authority had been put under pressure by the nuns' order to allow the

school to be put to a constructive use which would generate much-needed

revenue.

In an effort to keep the school open parents, pupils, and teaching

staff fought a long campaign which featured legal action against the

region.

Dr Mason wondered how the academy would fit in with the region's own

plans to establish technology centres at Merksworth and Allan Glen's

secondaries, both of which have been closed.

Region convener Councillor James Jennings denied yesterday that

Strathclyde was under pressure to sell to the company. He acknowledged

that the decision to sell ran counter to Labour Party policy but added:

''I supported the decision. I make no bones about that.''

He said councillors had to take into account legal advice which

indicated that individual members of the council could be surcharged for

failing to fulfil their duties by selling to the highest bidder, and

added that the decision was not simply the region's.

The bid was the only one on the table and was also accepted yesterday

by the region's buildings and property committee. The sale will come up

for ratification today before the full council. The Labour group last

year rejected an approach from the backers to build the academy at Allan

Glen's, which it wholly owned.

The sale will expand the Franciscan order's funds by #260,000. Sister

Loyola said: ''It is good to know that the school will be used for

something educational.''

However, it will cause a political outcry because the Labour Party and

teaching unions believe the initiative could harm the comprehensive

system by ''creaming off'' the brightest pupils and attracting teachers

in the very subjects in which the education authorities are experiencing

shortages.

Labour has also asked how a development supported by up to #10m in

Government money over a five-year period could benefit the wider

technical education of 300,000 Scottish school pupils. A Labour

government would give technology academies to the local authorities to

run.

Mr Michael Forsyth announced two years ago when he was Scottish

Education Minister plans for privately sponsored secondary schools

specialising in technology, science, and engineering. Until recently the

initiative had been dogged by failure to find a site and more private

money to add to Lord Forte's contribution.

Mr Tom Johnston, chairman of Barr and Stroud and the Scottish Office's

representative on the technology company board, conceded yesterday that

timing had become critical, given the August, 1991, opening deadline.

He added: ''This site has an awful lot going for it. I am pleased it

is to the east of the city centre and I hope local people will look at

it as their school.''