A holy war has been averted after confusion over a temporary work permit for a Catholic priest to work in Bermuda.

Now the Immigration Department is set to approve a three-month permit for a retired priest to take over the parish of St. Michael's in Paget, pending a fresh application tomorrow for a longer stay.

Catholics in the St. Michael's area were up in arms after it appeared Immigration had knocked back the application.

But Labour and Home Affairs Minister Paula Cox yesterday explained the Catholic Church had applied for a category of permit which did not exist.

She told The Royal Gazette : "The Catholic Church has a legal counsel and I don't like talking about individual cases.'' But she said the problem arose when the Church applied for a six-month temporary permit for retired Fr. Vern Brunning, who once worked in St.

Anthony's Catholic Church in Warwick, to come back to the Island.

But Ms Cox explained that temporary permits run only for three months, while regular permits can range from six months to a year.

She added: "My understanding of the position is that it's being dealt with.

"Basically, it appears to be a misunderstanding on the part of the Catholic Church -- it's being resolved.

"It was really just a glitch and I think we have been very understanding and helpful in getting that resolved.'' And she said a three-month permit was set to be approved, while the Catholic Church prepared a fresh application for the appropriate category of permit needed to allow Fr. Brunning to return to Bermuda.

The problem came to light after Island Catholics -- incensed at what they thought was a refusal of Fr. Brunning's application -- contacted The Royal Gazette to complain.

One pointed out that Bermuda -- largely staffed by Canadian priests -- had only one home-grown cleric, Fr. Glenn Baptiste, and the Church in Bermuda could not function without imports.

Last night, Bishop of Hamilton Robert Kurtz said: "I hope we will be able to get Fr. Brunning functioning at the parish. I think there will be a favourable solution for all concerned.'' He added: "It was probably a mistake on my part. I said I would need six months to find a new pastor. I didn't realise that such an application would change the whole application.

"It's been a little bit of a learning experience for me -- and I don't want this to be politicised. People are helping and the Government has been helpful.'' St. Michael's parish priest Fr. Pat McKelvie, from Canada, announced to his congregation in September that he would have to leave his post.

Fr. McKelvie told worshippers that he had to seek treatment for a variety of problems, including depression.

Bishop Kurtz said then that Fr. McKelvie -- who had already been overseas for treatment for around six months -- would be away for at least another six months.

And Bishop Kurtz hinted that he would probably seek a replacement priest for Fr. McKelvie and offer him another post in one of the Island's six Catholic churches when, and if, the priest decided he was ready to resume parish duties.