Progressive Labour Party MPs are split over the fall-out from Government's costly legal defeat in London with former Cabinet Minister Renee Webb saying Premier Ewart Brown's declining popularity could lose the party the election.

After twice being defeated in Bermuda courts in the bid to gag the media over printing revelations from leaked Police files into the Bermuda Housing Corporation scandal, Government took the legal battle to the Privy Council.

But on Monday it lost again in a decision which has cost the taxpayer hundreds of thousands of dollars. Assessing the fall-out Ms Webb said: "As is stands right now I think we could lose under Dr. Brown.

"And it is whether MPs are disillusioned enough or want to take the risk of going to the polls with Dr. Brown as their leader and potentially losing — that's the question. "If they think they will lose (with Brown) they will change the leader. It won't matter if it is three months before the election.

"I think they are getting close to that point and this will definitely help them. And those who are (at that point) will be helped by this. There is a lot of disquiet around him."

Another senior backbench MP said: "It isn't a good sign for the Premier unfortunately. Dame Lois Browne Evans always advised don't make an issue about what the press publishes. Live with it."

The MP said a one-day wonder press story could be given new life by an over-reaction and the defeat in London was a blow to hopes of an election in the next few months.

"It's problematic for the Premier, it depends where he sits in the polls. He might feel he can weather the storm and go ahead. It might be wiser to let this story run its course."

But MP Dean Foggo said the legal defeat had not been a blow to Dr. Brown's credibility, despite the cost to the Bermuda public.

He said: "Too many people look at it as Dr. Brown but he's the Premier. In his office he has rights and privileges. You always have to fight for what you think is right.

"I don't think it is a blow to his credibility — they are trying to make it a blow to his credibility."

But he did not know if the reverse in the Privy Council meant the Premier would have to back away from a pre-Christmas poll.

MP Glenn Blakeney backed the Premier's stance and said the principle of protecting confidential Police files was well worth fighting for.

He said his support for the Premier had increased over the issue as he described the media as being on a witch hunt despite the lack of evidence.

"I don't think it's going to hurt the PLP or the Government. At the end of the day people will measure the track record of the Government."

He said at a time when the Premier was being lauded for his achievements in tourism in China he was being castigated at home.

And PLP candidate Walton Brown said the repercussions from the latest twist in the court case were minimal.

"These are old issues which have been through the political cycle at least twice."

One MP, who spoke on condition of anonymity, said time could be running out for the Premier who had held off from a snap poll when he took office because he wanted to win 30 seats, up from the 22 the PLP holds now.

"Unless that was the reason I can see no other reason why he held off. It makes no sense politically. None."

But the MP said holding an election before the Privy Council would have been wiser but Dr. Brown had made the mistake of hanging on too long.

"If you wait too long it can go against you and in this case it has definitely gone against him.

"He will be swimming uphill to try and get the confidence of the people back and how is he going to get it back? Use the jazz festival and golf?

"Well those are feel-good factors and Bermudians aren't that stupid anymore. It's not like 'let's have a party and then vote for the Government'."

The MP said the Premier was trying to shore up his support among the parliamentary group.

"His answer is to have parties down at his house, invite them all for dinner and think that people are going to be happy and have your confidence.

"It's so transparent — it's American style of politics. Maybe he doesn't understand the average Bermudian."

The MP claimed the majority of MPs are alienated by the Premier, as were the voters.

"The ones who didn't support him, like myself, are saying 'we told you so'. We don't matter because everyone knows where we stand.

"He has lost a lot of credibility both within and without of the party. You can tell from the people who defend him — the Rolfe Commissiongs and the LaVerne Furberts — no one holds them to be too credible anyway."

But the source said a lot of people were getting alienated by personal slights from Dr. Brown and that former MP Arthur Hodgson was right to say Dr. Brown made unnecessary enemies. "That's a brilliant quote because it is true."

The backbencher said it was difficult to understand the point of the court action which most people had predicted as being doomed, particularly as other countries had lost similar actions.

"This will affect him from the people's eyes but not from his own.

"I don't think it helps him — the fact he's in China when this decision comes out — a lot of people find that bizarre as well. This will cost the taxpayer millions and you are sitting there having dinner in China? What does that say? He should have been home and pretty concerned.

"The party is having trouble because of him — not because of itself."