The Education Minister yesterday said the most important change in Bermuda's education system would be the development of community-based boards to oversee the running of schools.

The Hon. Clarence Terceira told Hamilton Lions the boards would include parents, business persons, principals and teachers who would determine school staffing, student services and curriculum.

His statement came just hours after telling Parliament he would soon introduce a new Education Act, which he described as "a giant leap forward for education.'' Dr. Terceira said the school boards represented a "decentralisation of our system.

"It is moving much of the management of the schools from the Department of Education and giving that part to the community.'' He added that the new boards -- consisting of nine to 11 members for primary and middle schools and 13 to 15 for the senior school at Prospect -- would likely be given executive authority in areas of finance and management of the facilities.

"I would expect the boards to play a key role and assist the principals and teachers in the matter of discipline,'' Dr. Terceira said.

"And I would expect the boards to assist in monitoring the standards and the general well being of the school.'' The Minister emphasised that he wanted "to give the community more authority in the running of schools, but along with that authority must come responsibility.'' All school principals have been asked to give Dr. Terceira their thoughts on what role the boards should play.

Dr. Terceira, who was speaking at the Princess Hotel, also said that discussing the idea of the boards with principals would assist him greatly in fine-tuning their responsibilities.

"I believe that with experience there are additional functions that can be handed over from the Department to the school boards. Certainly I would want to give them their own budget to administer,'' Dr. Terceira said.

He also said it would be necessary to retain in the Ministry the appointment of teachers, but only after consultation with the principal and his or her board.

"I believe that student services, such as those for students with special needs, should stay with the Ministry,'' he said.

"There will be a need to have, as now, a national curriculum and the ultimate responsibility for assessment of students should remain with the Ministry. In this way the standards of the individual schools can be monitored.'' Dr. Terceira stressed that the boards should never undermine the authority of the principals and assistant principals.

"I believe they will work very well together,'' he said. "We are very fortunate that we have such a high calibre of principals who are continually up-grading themselves in their profession.'' He added: "As you know, I am very keen on accountability, in our school system, of principals and teachers. I believe our teachers are gaining greater respect from the public than ever before. We are fortunate to have such dedicated teachers in our system.'' Dr. Terceira also said that the Code of Discipline -- outlining the rights and responsibilities of principals, teachers, parents and students -- would come into operation during 1995.