Today is Pamela Gordon's last full day as leader of the Opposition United Bermuda Party.

Contacted overseas by The Royal Gazette last night, Ms Gordon confirmed that she will be stepping down as party leader tomorrow.

Her successor will be announced with the official announcement of her resignation tomorrow - marking a seamless hand-over of leadership responsibilities.

While rumours of her resignation have circulated on and off since the party's crushing defeat in the November 1998 General Election, Ms Gordon told The Royal Gazette that the decision to step down as party leader was made in July.

"I will be stepping down as the leader," she said. "However I am still willing to serve and I will retain my seat."

She said that eliminating the party's close to $1 million debt was one of three things she felt she had to do before stepping down.

"I made up my mind that there were a few things to accomplish. First restore the stability of the party, because we were devastated after the '98 election. Everybody knows that. Secondly as a team we had to find our way back because, if you recall, many people said we would fold within six months. Thirdly, we were left with a significant debt - it was important the debt was paid. There was no way I would have stood down leaving a huge debt that was incurred on my watch."

She said that the debt was paid off "within the last few months" thanks to innovative fundraising and unprecedented team work.

The United Bermuda Party team is now the strongest and most cohesive it has been since before the 1998 elections, she said. And with fears of a major economic downturn since the September 11 attacks on the United States, the party has been inundated with people offering their assistance.

"The one thing they do know is the United Bermuda Party is very strong from an economic standpoint. We know how to tighten the belt and people are looking for that kind of direction from the Government," she said. "That doesn't negate the fact that there is a large number of Bermudians who feel they have been left out of the UBP and who feel they don't have a place with a PLP government."

"There is a lot of hope for the UBP if we continue to move in the right direction being cognisant of the mistakes we made in the past, being aware of what we must do in the present in order to create a better future for those people who feel left out and a way to fully embrace all people who wish to participate in the Bermudian society."

Ms Gordon's resignation also puts an end to speculation as to why she has not yet named a new senator to replace Maxwell Burgess who won his parliamentary seat in July.

"I have no choice because the Constitution makes it clear that the people who serve in the senate serves at the pleasure of the Leader."

As of tomorrow all UBP senate seats, and shadow ministries, will be up to Ms Gordon's successor. According to the Constitution when a party leader stands down all senate seats, as well as all ministerial portfolios, become vacant.

She said the fact that the leadership hand-over is going to be seamless - without media speculation as a bruising leadership contest got underway - was testament to the fact that the party is extremely cohesive. And the party had been working hard to rid itself of the image of putting self-interest first.

"I have said to my colleagues that our maturity will be when we can tell the people of Bermuda that their business is more important than our business. So we had to prove to Bermuda that this is a different party - change the image and be far more ready to deal with the issues at hand.''

"The reason we opted to use this method rather than the traditional method was to allow our colleagues to deliberate over the pros and cons of any potential new leader and leave the party's dignity intact without all the speculation and divisiveness."

She immediately denied speculation that she had made a deal to have Smith's South MP Maxwell Burgess step into her shoes.

"I don't do deals," she said. "I have been very upfront with my team from day one. I believe in an open, accountable process. So I can tell you unequivocally that is a blatant lie."