SHOCK and relief have rippled through the southwestAnglican community in the wake of Ballarat bishop Michael Hough’s decision to step down.His resignation follows months of speculation and was announced at a synod in Portland by Melbourne assistant bishop and acting Ballarat vicar-general Philip Huggins.It will take effect on December 20, with a 12-member committee elected over the weekend to find his replacement.Uncertainty persists over whether Bishop Hough, who remains on sick leave and did not attend the synod, will return to his duties this year.The church leader has polarised parishioners in his seven years at Ballarat and was the subject of misconduct allegations made in late 2008 to the Episcopal Standards Commission.Thirteen clergy and lay people have now withdrawn their complaints after a confidential deed of settlement between their group, Bishop Hough and the Ballaratdiocese was entered into.Bishop Huggins spoke of the need for reconciliationduring Eucharist at St Stephen’s Anglican Church yesterday and later told The Standard his colleaguehad made a brave move. ‘‘(He) has decided to resign in order to help the diocese have a fresh start, so it’s a very gracious and courageous decision,’’ he said.‘‘My role is to try and look after the people, obviously, in this time of unexpected change, and to hopefully be someone who helps with that process of reconciliation.‘‘We’re working the plan out as we go along, but I’ll be here certainly for the period ahead.’’A group known as the Ballarat Laity Against Bullying gathered more than 330 signatures on a petition callingfor Bishop Hough’s resignation, but did not present the document to the synod as originally planned.Registrar of the Ballarat diocese, Robin Mitchell, said the resignation had surprised many of those at the synod.‘‘I think the bishop resigned for the good of the diocese. Bishop Philip has a program mapped out to get the diocese to work together and get over our problems,’’ he said.A church statement released on Bishop Hough’s behalf said prayer and reflection guided his decision.‘‘The bishop hopes that the diocese will continue with its mandate for mission, enlivening our traditions and liturgies,’’ it said.