Cabinet yesterday, citing business and family obligations.

The move took Cabinet Ministers by surprise.

It left Premier the Hon. Sir John Swan not only with a vacant Cabinet post, but without a Government Leader in the Senate, where Sen. Winfield had steered the Government agenda since 1992.

But a Cabinet shuffle is seen as unlikely. Environment Minister the Hon.

Gerald Simons is the logical choice as Government Leader in the Senate, while Sen. Grant Gibbons is a strong bet to join the Cabinet, possibly as Minister of Technology.

The Management portfolio would either be assumed by the new Minister or handed to an existing Minister.

An announcement from the Premier is expected within days.

While giving up his other posts, Sen. Winfield, 40, will keep the seat he has held in the Upper Chamber since 1987.

Having managed successful United Bermuda Party campaigns in 1983, 1985, and 1989, he is also expected to remain one of Sir John's political advisers.

"It's one of the most difficult decisions I have ever made,'' Sen. Winfield said of his resignation, which was discussed with the Premier on Monday and submitted when Cabinet met yesterday.

General manager of Cambridge Beaches hotel since 1983, Sen. Winfield recently became president of Bermuda Financial Centre Ltd., the company with ambitious plans to redevelop the Bermudiana Hotel site.

He and his wife Lynne have three young children, and the Bermudiana was "requiring more and more time,'' he told The Royal Gazette .

"There had to be a compromise situation, particularly when faced with the fact that Government now faces one of the most challenging periods of time it probably ever has.'' As Minister of Management and Technology, Sen. Winfield was the only Minister with an office in the Cabinet Building that houses the Premier's Office.

The newly-created portfolio was to focus on the future. The use of the vacated Bases and the recommendations of the Commission on Competitiveness and the Employment Task Force were among the items on Sen. Winfield's plate.

"In the past few months it has become increasingly clear that the challenges facing Government are going to require the full-time dedication of all of your Cabinet,'' Sen. Winfield said in a letter to the Premier released by the Cabinet Office.

That commitment would be impossible for him "in the short term,'' he said. In another letter, Sir John said he accepted the resignation "with considerable regret and sadness.

"I fully understand the reasons which have caused you to make this decision and particularly your wish to devote more time to professional and personal commitments which will require greater attention in the months ahead.'' He hoped the Senator could again assume "a more active role in the affairs of Government,'' in future.

A Cabinet Minister since 1990, Sen. Winfield first held the post of Management and Information Services.

"It was a total surprise to me, personally,'' one Cabinet Minister said of his resignation yesterday.

Opposition Leader Mr. Frederick Wade said he too was taken aback by the announcement.

"It's rather curious that (Sen.) Mike Winfield, who is one of Sir John Swan's right hand people, would pick this time to resign,'' Mr. Wade told The Royal Gazette . "The Government would need all hands on deck facing the possibility of dealing with the Base closures and Independence.'' Mr. Wade said he had heard speculation the resignation was due to "controversy over the Financial Centre.'' For his part, Sen. Winfield said he was aware of "the inane and inaccurate allegation by one individual'' that his position in Cabinet could cause the Bermudiana project to "be accused of being railroaded.

"The opposite was the truth,'' he said.

But any appearance of conflict was a concern. "Both are extremely important to me -- good Government and the project itself,'' he said. "I wouldn't want either one to be negatively impacted by the other.'' The $130-million-plus proposal for a Bermuda "Wall Street'' including a 1,000-seat convention hall, a 300-room luxury hotel, condos, and office blocks has brought objections from the Corporation of Hamilton and others.