president Donald Peters to terminate his contract early before his replacement started, Premier Jennifer Smith said yesterday.

Ms Smith said the decision to end the contract early rather than have a overlap period with his successor was due to plummeting morale at the College.

But Shadow Education Minister Tim Smith said it was Government's change of mind which cost the taxpayer the $85,689 pay-off, adding that if Dr. Peters was really the cause of the discontent, he should have been sacked in the first place.

Ms Smith said the College Board originally planned to have an overlap period when Dr. Peters' replacement Dr. Larita Alford arrived.

In response to questions from Mr. Smith, she said: "The Board's original plan to have an overlap period was abandoned primarily due to the deterioration in the College climate and staff relations/morale.

"Additionally, it was thought that this exceptional period of overlap would not allow the incoming vice president to fully and clearly establish herself in the role.'' In an interview with The Royal Gazette before his departure, Dr. Peters laughed off suggestions that he left by mutual agreement. He said he intended to serve out his contract for the transition period but was not given the choice.

Dr. Peters was paid $85,000 Randolph Horton that he left six months early because he obtained a job in the US.

The Premier told MPs, however, that Dr. Peters' contract was concluded "by mutual consent'' on June 30 and Dr. Alford began on July 1.

"Such an arrangement is entirely in keeping with normal practice in institutions of higher and further education,'' she said.

The Premier said Dr. Alford, the Dean of Instruction at Columbia State Community College in Tennessee, was supposed to start in Bermuda on August 1, but commenced employment earlier because of "changed circumstances in Tennessee''.

Ms Smith said Dr. Peters' pay off was in accordance with the terms of his contract.

Later, Mr. Smith said: "No matter which way Government wishes to paint this, it is clear that they changed their mind in what they were going to do with Dr. Peters and that change of mind has cost the taxpayer of Bermuda almost $90,000.

"The answer clearly says that Dr Peters is responsible for the deterioration and the change in climate and morale. If that was the case, why didn't they dismiss him for cause?'' In a savage attack on the College, Dr. Peters condemned the "deadwood'' at the top of the College who wasted their time wining and dining.

He claimed the problems, including producing sub-standard students, would never be solved because the Board was politically controlled.

Contract: Dr. Peters