Breen Premier Jennifer Smith fired Environment Minister Arthur Hodgson yesterday, four days after he failed to oust her from the leadership of the Progressive Labour Party.

Ms Smith said she took the unusual step because Mr. Hodgson refused to resign before or after challenging her for the leadership.

She denied it was an act of revenge to punish Mr. Hodgson, and insisted it was precedent in Westminster democracies for a leadership candidate to resign before making a challenge.

Development and Opportunity Minister Terry Lister will incorporate Environment into his ministry.

PLP insiders said yesterday the fact that there was now one less minister will further consolidate Ms Smith's position as leader.

The Premier said: "I recognise Bermudians who are not used to it -- and this is a first -- may see it (the dismissal) as something else.

"I would say this. Certainly one is open and welcome to challenge in leadership at any time, but one doesn't do that from a position of trust.

"One would respect the integrity or keep the integrity of the whole by saying `I don't agree with you here', or `I disagree with you here', and resigning and then making the challenge.

"That is normally the way it happens. I did wait. I realise this is new to Bermuda, so I thought it might happen after the challenge.

"When it did not happen I could not continue having had Mr. Hodgson having expressed the fact that he was not pleased with my performance, to be a member of Cabinet.'' Ms Smith summoned Mr. Hodgson to Cabinet Office yesterday morning and handed him a letter say he was dismissed.

Mr. Hodgson told The Royal Gazette he had no regrets about challenging Ms Smith and refused to criticise her even after the sacking.

He said: "There's always mixed feelings but I'm exhilarated by the fact that I've done the right thing and whenever you do the right thing, the right consequences emerge.

"I would not want to characterise the Premier in any particular way. I have been careful always to speak well of the Premier and I don't intend to change that now. She is the Premier and the party leader and as such, I have the utmost respect for her. She called me to the Cabinet Office this morning and we had a brief chat and she gave me a letter relieving me of my responsibilities.

"I'm fine. I've always said I am at the disposal of the party and the Premier.'' When asked if he had any regrets about standing, he said: "Absolutely not. As I've indicated before the election, colleagues asked me if I would decline a nomination and I said if the party wanted me to do it, I would do it. The reason for her (Ms Smith's) action and how she handled it, you will have to put to her.

"I am very happy to do whatever I am called upon to do. If it is serving in the Cabinet, I am happy to do it, being a backbencher I am equally happy.'' PLP insiders have claimed Ms Smith does not have support of the majority of her MPs.

When asked how many MPs he thought voted for the Premier in the leadership contest, Mr. Hodgson said: "I don't want to second guess who voted for whom.

I have my own views, but I wouldn't want to speculate any further than that.'' At a Press conference in Cabinet Office, Ms Smith said: "These changes are effective immediately and have been made necessary due to the role of Cabinet.

"The Government (i.e. Cabinet) must not only be united, but must be seen to be united.

"According to parliamentary precedent, wherever the Westminster system is followed, a Cabinet Minister in such a position voluntarily tenders his/her resignation before the actual challenge.

"In this case, no such voluntary resignation was forthcoming (so) I have accordingly taken the above steps.'' She said the decision to sack Mr. Hodgson was in the bests interests of the Island as well as the PLP.

"While you were not privy to the inner workings of my political party, certainly we collectively have been elected to do a job based on our platform, but there were indications of a change in that direction.'' Premier stands by decision She revealed that had she lost the election on Thursday, she would have resigned -- and expected other Cabinet members to step down --to allow Mr.

Hodgson to select his own team.

Ms Smith said she didn't expect Transport Minister Dr. Ewart Brown -- who challenged Finance Minister Eugene Cox for the deputy leadership -- to resign because he had not stood against the leader.

"Members are sworn in as members of Cabinet and part of their responsibility is to remain loyal to the Premier and to work together as a team,'' she said.

"Nothing Dr. Brown has done has indicated that he is not willing to remain a member of that team. He has indicated he would want to have a more involved role in that team.'' Ms Smith said she expected Mr. Hodgson would continue to play an active role as a backbench MP.

She said Mr. Lister's appointment was not temporary, but she might siphon off some of his responsibilities to other ministers.

But she added that she is looking at a backbencher to step up to the Cabinet in the near future.

She dismissed a suggestion that fellow St. George's North MP Delaey Robinson would be new Environment Minister as "so far off''.

Ms Smith said she no indication that any Ministers had resigned from the Cabinet or backbenchers refused the Whip as a result of Mr. Hodgson's sacking.

Mr. Hodgson's fellow Hamilton West MP Randy Horton said he was disappointed at the dismissal. "I am surprised because I wanted him to be in the Cabinet,'' he said. "Why the Premier did this, you would have to ask her.

"I was hoping this wouldn't happen but the Premier is the Premier and she has a decision to make. This decision is not going to satisfy everyone. I just hope it will not damage unity in the party.'' Mr. Lister said he was "surprised'' to take on the Environment portfolio. He said he approached the Premier to ask for a permanent secretary, but didn't realise he would be getting a new department to accompany it.