post in disgust.

For teaching chiefs have changed their minds about docking $3,500 from the salary of former Whitney Institute music teacher Gareth Balch after he quit his post early, describing Bermudian schools as "the worst he had ever taught in.'' When The Royal Gazette broke the news to Mr. Balch -- who is back home in England and unemployed at present -- he said: "It's excellent news.'' The announcement came only weeks after Mr. Balch contacted The Royal Gazette to complain about his treatment by education bosses.

Mr. Balch threatened to sue Government if the cash was deducted from his December pay cheque, his final month's salary.

He also contacted the British Musicians' Union and the English National Union of Teachers, who both agreed to take up his case.

But yesterday Mr. Balch said he would now consider dropping action against the Education Department.

He said: "If they are doing this with no hard feelings, my instinct would be to leave it there.

"The moral victory is mine and I have got to get on with my life. I don't think it would be worth taking any further.'' Mr. Balch resigned from his $48,000-a-year job last month after less than four months on the Island -- along with four other teachers and a speech therapist -- after claiming "complete mismanagement'' by the Education Ministry.

Mr. Balch said in an open letter to Education Minister Jerome Dill that the five resigned because Bermudian schools were badly-equipped and in a state of anarchy.

Among Mr. Balch's complaints was that the Education Department had said it would deduct cash from his salary to cover money paid out to cover moving expenses and flights for himself and his wife to the Island.

Education Department officials insisted the money had to be paid back because Mr. Balch broke his contract -- but he said he had never seen or signed a contract and threatened to sue if the cash is deducted.

But yesterday the Education Department's Ray Latter said: "There has been a change of mind and Mr. Balch will not suffer financially.

"It was a Ministry decision. Mr. Balch should have had his cheque by this time and I assume that has been done.'' Mr. Latter added: "We wanted to get this behind us. Frankly, it's been a bit of a storm in a teacup.

"But we decided to take the high road rather than go along the legalistic route. We wanted to get the matter finished. We have no hard feelings and it's now settled as far as we are concerned.'' Education Minister Jerome Dill said the matter was an administrative one and was entirely handled by departmental officials.

Among Mr. Balch's other complaints were that he was told there was no housing subsidy available. He later learnt that at least one teacher who arrived on the Island around the same time had a $250 a month rent subsidy from the Minister of Works and Engineering, which handles housing for Government employees. That led to accusations of discrimination by Bermudian Union of Teachers general secretary Sen. Milton Scott, who said the Education Ministry should honour promises made -- even if technically outside the contract terms.

Shadow Education Minister Ms Jennifer Smith -- who called for an inquiry into professional standards and accountability in the Ministry -- welcomed news of the Government U-turn.

But she said: "From the outside, it looks like the Education Ministry backed down because they couldn't win.'' And she said that an inquiry should still be held into why Mr. Balch had never been given a formal contract.

Another of Mr. Balch's complaints was that he had never been told of a decision to place special needs children in mainstream schools, which meant more than 20 pupils -- many with severe behavioural problems -- had been sent to the Whitney Institute. Mr. Balch was assaulted by a pupil at the school in November, but insisted that played no part in his decision to quit.