EDUCATION chiefs are being urged to grasp the nettle of school closures in a report published yesterday by independent auditors, which reveals the problem of spare capacity persisting across Scotland.

The study by the Accounts Commission of Scotland shows that in five local authorities, at least a third of secondary schools have 40% of their places empty. The same situation exists at primary school level in 13 council areas.

The report also reveals that in 18 of 32 local authorities, composite primary classes breach the legally set limit of 25 pupils - a statistic omitted from the commission's press release.

It claims that reducing the 300,000 surplus places that exist in Scottish schools could provide local authorities with a one-off saving of #25m, plus annual savings of #20m - which could be re-directed into other areas of education provision.

Controller of audit Robert Black said: ''Spare capacity continues to be an issue because some of the former councils were slow to address this long-standing and very sensitive issue.

''Some of the new councils have begun to review occupancy levels and take action, but there is still room for improvement in many councils.''

Earlier this year, Scottish Education Minister Brian Wilson said rural schools should only be closed on educational grounds, but Mr Black insisted the savings could be made ''allowing for the problems of rural schools and the denominational split''.

Glasgow and Dundee councils have undertaken large-scale rationalisation programmes since the survey was conducted in 1996-97. Other councils mentioned in the report include Inverclyde, Western Isles and Orkney in the secondary sector, and Falkirk, Inverclyde, North Lanarkshire, West Dunbartonshire and West Lothian in the primary sector.

Ms Elizabeth Maginnis, education convener of the Convention of Scottish Local Authorities, said: ''These are all local authorities which have tried to take action or have been thwarted by the recent decision on rural schools.''

Meanwhile, Mr Ronnie Smith, general secretary of the Educational Institute of Scotland, said: ''I find it troubling that there's a national agreement on composite class sizes which is being blithely ignored. The Accounts Commission doesn't feel it necessary to draw attention to that.''