Premier Jennifer Smith last night saw off Arthur Hodgson's challenge for the leadership of the party and the country by a comfortable margin of more than two-to-one.

But the big surprise of the night was the battle for the deputy leadership, with Finance Minister Eugene Cox having to fight off a challenge by Transport Minister Dr. Ewart Brown.

Ms Smith polled 81 votes out of the 118 votes on the final day of the PLP's annual conference while Mr. Hodgson picked up just 35.

Eugene Cox polled 87 votes to Dr. Brown's 31.

The pressure will now be on for Mr. Hodgson to resign his post as Environment Minister.

Mr. Hodgson said: "I'm glad it's over. It's business as usual for the party.

I serve at the Premier's pleasure and so far she hasn't asked for my resignation.'' Asked if he would lose his Cabinet seat Mr. Hodgson said: "You'll have to ask the Premier that question.'' "The vote is significant. I was very reticent to speak before the election.

"Now I can say fairly and frankly that my analysis of the voting and the delegates did indicate that I was not going to win but I thought it was important for democracy to prevail, therefore I stepped forward.

"If you want to be a leader you have to be willing to serve and you can't serve if you don't step forward to the race.

"What I said was the truth. I was not campaigning and I didn't ask anyone to vote for me or nominate me.'' Mr. Hodgson was nominated by the Somerset and Pembroke branches.

"I congratulated the Premier on what was a convincing victory. She turned in a fine performance.'' Asked if she had his full support: "She has always had my full support.'' Ms. Smith said: "I am pleased the delegates have once again placed their faith in me and I intend to continue doing the job I was elected to do, to carry out the comprehensive policies of the PLP.'' Referring to the result and the deputy leadership vote she said: "It was about what we were expecting.'' Asked about Hodgson's future the Premier said: "I don't indulge in speculation or anticipation.'' Works and Engineering Minister Alex Scott said: "It is up to Mr. Hodgson whether he feels it is necessary for him to meet with the leader and make what some feel is the gesture of tendering his resignation, but it is for the Premier whether she accepts it or not.

"It is generally the traditional thing to do, but it is not the required thing. It is up to Mr. Hodgson and I would not like to second guess him or the Premier.'' Further coverage on Page 3 Premier secures landslide win However PLP press officer Cory Butterfield sounded a diplomatic note as he broke the news to waiting reporters on the steps of the BIU building at 10.45 last night.

He said: "After the vote Jennifer Smith won a standing ovation, after Arthur Hodgson gave a conciliatory speech there was another standing ovation.'' Mr. Butterfield said it was with this spirit of unity that the party would move forward.

But one senior party insider within the Hodgson camp predicted the Environment Minister would resign and leave Premier Smith struggling to find a successor.

Under the tradition of cabinet collective responsibility a minister who defied his party leader by standing against her would be expected to step down.

The source said PLP backbenchers would be unlikely to step into his shoes as it would be seen as disrespectful to Mr. Hodgson who has won admirers for his hard work at the Environment Ministry.

The source said: "No one on the backbench would accept it out of solidarity with Mr. Hodgson.

"The only two possibly would be Neletha Butterfield or Wayne Perinchief.'' And Ms Smith's running mate and supporter Delaey Robinson has said he doesn't want the job.

Asked if he would accept the post he said: "I hope she doesn't ask me, not because I am not interested in the environment but because it is an awkward time for me.'' Mr. Robinson said he was already busy with a young family and a new business.

But he said he thought Mr. Hodgson would resign his ministry.

Mr. Robinson said: "You would have thought that would be the case. He would realise the way he is expected to behave and that would be the next move.'' But Mr. Robinson conceded Mr. Hodgson's low-key campaign could plausibly give him a way out and allow him to hang on to his cabinet post. "He could fall back on `I never declared myself as a candidate, I just said I would follow the wishes of my party','' he said.

"I guess he would resign unless the Premier asked him to stay on.'' And Mr.

Robinson said he hoped Mr. Hodgson wouldn't be left out in the cold.

He said: "There's a lot of talent in Bermuda but we don't have so much that we can squander it.

"He's a brilliant guy, no one could argue otherwise. It's great we have him in the party.'' Asked why Mr. Hogdson had stood when the odds were against him Mr. Robinson said: "I don't know why, you can pull them out of the hat: ego, a test of democracy, not wanting to let his supporters down.

"It could be all sorts of reasons.'' Before the vote PLP insiders had claimed Ms Smith does not command the support of the majority of her 26 MPs, but party officials refused last night to give details of how many MPs backed her in the vote.

Ms Smith has led the PLP for five years and guided the party to its historic first ever election victory in November 1998.

But opponents within the PLP -- and the country -- have accused her of being arrogant, secretive, and aloof.

Supporters of Mr. Hodgson said their man decided to run after being "overwhelmed'' by approaches from party and non-party members urging him to lead the country.

All smiles: Premier Jennifer Smith hugs her Finance Minister Eugene Cox following last night's double victory.