Ms Ruane's Department of Education has developed the multi-million pound eSchools Data project which is currently being phased in across the Province.

It allows each school to view details of their own pupils, parents and staff — but some officials at the Department of Education will be able to access information about any entry.

TUV leader Jim Allister, who is chairman of a school board of governors, said that the new Education and Skills Authority (ESA) would control the database, but the department said that it would be in charge of the computer system.

"ESA and the department under Ruane will, at the touch of a button, have not just educational data on every child, but highly sensitive personal data, including the religion of every child and both the home and work address of every child's contact, normally their parents," he said.

"To this I object. At this time of increased terrorist threat and given the history in Northern Ireland of republican terrorists targeting security personnel, it is madness to collate information of this sensitivity.

"There should be no such personal data collected and stored centrally. Only educational data is relevant and beyond that there is no justification for this 'Big Brother', Ruane-controlled, database."

The QC challenged the legal ability of the department to collate and hold the information.

Mr Allister argued that while it was legitimate to collect information to enable boards to provide school transport or free school meals and for the department to monitor its performance, "needlessly collecting personal data on both pupils and parents is something else".

Last night the Department of Education insisted that access to its database would be "strictly controlled" and said that the computerised records would allow schools to better monitor the performance of their pupils. In a statement, the department said: "The development of the eSchools data warehouse brings together information already available across a range of education organisations and is not directly related to the establishment of the ESA.

"The chief benefit of eSchools will be that schools will have on-line access to current data which will assist them with self evaluation and school improvement, enable them to obtain performance information and identify trends, and compare themselves with other similar schools.

"Access to the data warehouse and its reports is strictly controlled. Users are obliged to obey acceptable use policies and sign up to a statement of responsibility."