An education minister has signalled encouragement for more private involvement in running schools - even if they are not failing.

"If we are talking about a new way to manage a school and the private sector wants to be involved - as long as it isn't for profit - I think we ought to be open to that," Estelle Morris, the School Standards Minister, told MPs.

She was giving evidence to the House of Commons education select committee in its inquiry into private involvement in education.

"What I want to get away from is the private sector only having involvement where there is a huge level of failure," she said.

She was speaking after it emerged that Conservative-controlled Surrey County Council was seeking to increase the private sector involvement in its schools.

Tenders invited

Last year Surrey was the first council to invite a private company to manage a failing school - Kings' Manor in Guildford, now renamed Kings' College and run by 3Es.

Now it is inviting tenders from the private sector to manage France Hill School in Camberley - described by schools inspectors as "improving" with "many more strengths than weaknesses".

France Hill's problem is that it is relatively unpopular compared with two other neighbouring schools, recruitment has been failing and, with that, its budget deficit has been rising.

Surrey's deputy education director, Steve Clarke, said a private sector partner could provide new "drive" for France Hill and would be better placed to attract commercial sponsors.

Last week the government proposed the establishment of new "city academies" in England, with "substantial" capital investment from outside organisations - businesses, churches or others - to replace failing schools, rather along the lines of the existing city technology colleges (CTCs).

New academies

Government advisers made soundings before the announcement, of those who had backed the CTCs.

Peter Vardy of Reg Vardy Motors, which put �2m into the establishment of Emmanuel College in Gateshead, Tyne and Wear, was one of those consulted.

"I got a call a couple of weeks ago saying: 'Could you find enough sponsors to build 24 Emmanuel Colleges?' and I said: 'Yes I believe I can but I don't want to go to them unless it's a distinct possibility'.

At Emmanuel he had been able to use business money and management expertise to empower the teaching staff.

"It's Utopia for teachers because they can spend their time teaching and not lion taming," he said.

And there was an economic benefit to businesses in getting involved in this way.

"The students are so good and impressive that employers are going into the school doing industry days and getting involved because they want to employ 'the end product', the Emmanuel college student," he said.

"There are companies out there that are prepared to get involved."

Children's interests

Ms Morris declined to comment on France Hill School specifically.

But she told journalists that nothing was being ruled out, as long as children's interests were protected and standards raised.

"If those areas where we aren't intervening want to come forward with ideas as to how to do the job better, we don't want to stop them," she said.

Ms Morris drew a distinction between "profit" and a management fee.

"People need to be paid for what they do," she said.

"What we want to avoid are the fears of some teachers that private companies will make decisions to take profits rather than invest in schools."