Government yesterday denied charges of "capitulating" to teachers' demands in the recently concluded pay dispute, and announced that the dispute had forced the cancellation of system-wide end-of- year student tests.

In a statement to the House of Assembly, Labour Minister Randolph Horton referred to an editorial in accusing Government of "total capitulation by the Government on the issue of parity between civil servants and their profession."

Mr. Horton said he did not know what the newspaper based its conclusions on.

"What I do know is that the financial package agreed reflected fiscal prudence; it was less than what the Bermuda Union of Teachers wished from the outset, but more than the Government had initially offered," he said, adding that the outcome was the result of "reasoned debate" and reflected the best interests of all concerned.

The Minister echoed a statement by Education Minister Terry Lister crediting mediators, the BUT and Education and other Government officials for their work in resolving the stand off.

And Mr. Horton said that he said his decision to invoke, and later suspend, the Trade Disputes Act was an indication that Government was prepared to take "strong measures", but believed in the integrity of the two parties to come to a resolution.

"In fact, some trade unionist stalwarts consider the legislation to be nothing short of anathema. However, the Government was prepared to adopt strong measures to ensure that the entire community was returned to a condition of normalcy at the earliest possible time," Mr. Horton said.

"In this regard, it must not be forgotten that the Government is required to act in the best interest of all the citizens of Bermuda and to make decisions with careful regard to the economic and social circumstances in which we find ourselves."

He added: "Yet the decision to suspend the provisions of the Trade Disputes Act to enable the mediation team to work toward a resolution was a demonstration of the Government's good faith. It reflected the fact that ours is a firm but fair Government, a caring and listening Government, one that is fully committed towards ensuring the protection of the rights of both the employer and the employee, whilst at the same time emphasising the importance of each party conducting itself responsibly during the negotiation process."

In his statement, Mr. Lister said that teachers had made "huge strides" in their bid to obtain pay parity with civil servants over the last three years.

"This settlement is not what the teachers had initially asked for however and we are pleased that the membership accepted the offer and are back at school with our students during this upcoming last month of the school year."

And he thanked the many people who had "performed yeoman's service" supervising the students during the teachers' work to rule actions.

"Without the diligent, caring, management and work of these persons our students' safety and security could have been further compromised."

Mr. Lister said the Ministry had decided to cancel the end-of-year tests for this year as a result of the dispute.

The matter had been discussed "extensively" with school principals, he said.

"Persons emphasised the importance of these assessments and emphasised also the need for an appropriate environment for the assessments free from disruptions that may inhibit the students' preparation for the assessments."

He defended the assessments as a way of ensuring a "common standard" for all schools.

"The system uses standardised testing that would compare Bermuda to an external standard because of the international character of the local economy," he continued.

But he added that concerns about publishing the results of the Terra Nova tests were being examined.

Turning back to the teachers, he promised that they had the support of the Government and called on "every family" in the school system to support them.

"Our students must also step up to the wicket; it is time for our young people to do as we used to say ? put their money where their mouth is," he said.

"We need our students now to make sure during their school days they make learning their business and plan for how they will use their education to improve their life and that of their families and community at large. Educators and parents can only offer support, guidance and instruction. The students must do the rest."