London: The Conservative party has begun action to suspend one of its councillors over “unacceptable” remarks he made about the prospect of minority ethnic children from London studying in West Sussex.

The Durand Academy in Stockwell, south London, plans to open a boarding school for 600 students in Stedham village in September 2014. The move is being backed by the Department for Education, which calls it an inspirational project. But some Stedham residents are reported to be bitterly opposed to the academy, which will occupy an eight-hectare site in the South Downs national park that was previously a school for children with special needs.

John Cherry, district councillor for Stedham ward, told the Mail on Sunday he had serious concerns about the effect the London pupils would have on the area.

“Ninety-seven per cent of pupils will be black or Asian,” he said. “It depends what type of Asian. If they’re Chinese, they’ll rise to the top. If they’re Indian, they’ll rise to the top. If they’re Pakistani, they won’t.” He said certain nationalities valued hard work, but there were also “certain nationalities where they are uncertain what this hard work is all about”.

Cherry also appeared to suggest that keeping the students confined to the school premises would prove dangerous.

“If the children are not allowed out of the site then it will make them want to escape into the forest it will be a sexual volcano,” he said. “Has anyone asked whether these children want to be plucked from their natural surroundings? They have never done boarding before, so they won’t know how it works.”

The trauma of transplanting the students to a new environment, he added, would be considerable. “Stockwell is a coloured area I have no problem with that,” he said. “To be honest, I would far rather Durand took over a secondary school in London rather than shoving everybody here.”

Durand’s executive head, Greg Martin, said the aim of the boarding school was to change the prospects of its pupils and to create an institution of which the whole community could feel proud.

“We have been appalled by the comments from a minority of residents, but have also been heartened by the support shown by many local people including a petition gathered by one lady, with over 100 signatures who recognise the educational significance of this project and agree with our aim of enhancing access to the beautiful national park for children who would not otherwise have the chance,” he said.

“This is not about removing children from Brixton; it is about providing our pupils with a structured and varied secondary education, building upon their outstanding progress at primary level, and providing them with the opportunities that they so richly deserve.”

Cherry declined to comment on the matter on Sunday. A woman answering the phone at his home would not let the Guardian speak to him or say whether the comments attributed to him were accurate.

But his remarks were swiftly condemned by both his own party and Labour. A Conservative party spokesman said: “These comments are totally unacceptable and do not reflect the views of the Conservative party and we are investigating.”

Labour’s education spokesman, Stephen Twigg, said: “When a Tory councillor makes openly racist comments like these, it’s no surprise people still think of the Conservatives as the nasty party. David Cameron must condemn his councillor’s words and take immediate action against councillor Cherry to show that he will not accept racism in his party.”

Labour MP Kate Hoey, who represents Stockwell, tweeted: “I invite cllr Cherry to visit Durand Academy in Stockwell to meet those who will be boarding. Stedham will gain hugely from their presence.”

A Department for Education spokeswoman praised Durand’s “rigorous curriculum, great teaching and sky-high expectations for all pupils” and said it had a superb record on helping disadvantaged pupils achieve excellent results. “Durand’s boarding school is a bold experiment and a chance to give inner city youngsters a truly world class education,” she said. “It is difficult to believe that anyone would want to obstruct such an inspirational project.”