The New Year started off with a bang, as thousands of revellers packed into St. George's Town Square for the annual fireworks display -- but there was little indication of the firecrackers to follow later in the year when Bermuda would see its most famous election victory ever and mark 1998 down as a landmark year for the Island.

Politically, it was to be 12 months that would go down in the history books.

There was another rocket shortly after the New Year when former PLP MP the Rev. Trevor Woolridge set off a selection battle for his Hamilton East seat, announcing he was leaving the House of Assembly. BIU President Derrick Burgess eventually won the nomination battle and the by-election in a landslide which would be a harbinger of the General Election.

Late-night violence became an issue, as nightclub owners, the Chamber of Commerce and Police pledged to get to grip with the scourge that had seen stabbings and fights outside Island night spots. One theory on the rising tide of trouble was the lack of cannabis on the market -- leading to less relaxed users. And the problem of youth violence on the streets raised the possibility of curfews for minors -- an idea that was destined for failure.

Both the PLP and UBP said they would be sending delegations to a meeting of the Dependent Territories Association in London -- with full UK citizenship top of the agenda.

A heavy workload and busy diary led to National Drug Commission chairman Mansfield (Jim) Brock stepping down from his post -- he remained involved and during his time oversaw the successful Drugs Don't Work Here programme adopted in many of Bermuda's hotels.

At Bermuda International Airport, work started on $20 million renovations to the terminal buildings and improvements to the arrival and departure areas.

For passengers there was bad news as Conquest Tours announced an early finish for its flights to and from Bermuda from Toronto.

There was bad news for youngsters wearing hooded jackets at the new CedarBridge Academy -- officials banned them, citing security reasons for the move.

February's arrival was trumpeted with the news that Britain was to offer UK passports to Bermudians -- but with the sugar came the fears of possible conditions attached. The abolition of hanging was thought to be one.

Premier Pamela Gordon, in London for the conference, stressed there was nothing for Bermuda to fear from requests for constitutional change.

And also new from Britain was the British Airways Boeing 777, destined to serve the London to Bermuda route with improved passenger comfort and service.

It heralded a successful year for the company, with an increase in numbers using the route and an overall increase in arrivals from Britain -- a bright light in an otherwise gloomy tourism year.

The Island's leader was back in action at an international economic forum in the Bahamas, where she and other officials fought Bermuda's corner with respect to white collar crime and worldwide financial regulations. But Ms Gordon said dual criminality of UK laws in Bermuda was unacceptable.

Back on home soil the development of Ship's Hill was given the go-ahead, despite concerns from environmentalists, but the housing and leisure plan would hit the headlines again later in the year.

But there was a disaster for another East End property, when contaminated water at the Marriott Castle Harbour Hotel caused hundreds of people to become sick. And there was no quick recovery as Health Department officials and Government got caught up in a row over what exactly was to blame for the outbreak. Eventually it was revealed that a blocked sewage pipe was the culprit.

Some good news came later when Finance Minister Grant Gibbons outlined a boost for the tourism industry within his Budget statement, and permission was granted for an eco-tourism resort -- complete with tented accommodations -- at the former Canadian Naval Base at Daniel's Head.

And economic issues stayed in the news when Bermuda was ranked as having the world's second best economy in a poll by International Living magazine but failed to make the publication's top ten "quality of life'' category.

In March, nurses at King Edward VII Memorial Hospital were reeling as a consultant's report identified 30 jobs that could be lost -- possibly to be replaced by lesser-qualified staff. And staying on social issues, the then Housing Minister C. V. (Jim) Woolridge shook off calls for his resignation, when Opposition MPs claimed he was out of touch with the people over housing.

It was all set to be lights, camera, action in Hamilton city centre, when plans were revealed for a CCTV network. The Corporation of Hamilton said the 30 cameras would be placed at strategic locations around the streets, with the aim of making the city a safer place, especially for women. They were eventually erected by the end of the year.

And as cameras prepared to zoom in on Hamilton's streets, sky watchers were focusing on the heavens above as dozens of people reported seeing mysterious lights hovering over the Island. But there was disappointment for the UFO watchers, as the cause was identified as a US missile firing exercise off the eastern Atlantic coastline.

Praise from all quarters was heaped upon retiring Senate President Albert Jackson, who left the post after 12 years service. His replacement was Senator Alf Oughton.

The battle between the Government and Cable and Wireless hotted up as Finance Minister Grant Gibbons revealed to the House of Assembly that the company had started legal action against the Government. C&W were seeking damages for the loss of exclusive international phone service rights.

Meanwhile, telecommunications provider BTC had its own problems as 200 workers walked out following disagreement over the treatment of a suspended colleague.

They eventually returned.

And still on communications, former Transport Minister Wayne Furbert outlined an overhaul for the Island's transportation system -- with plans to get people out of their cars, reduce exhaust emissions, introduce high speed ferries and beef-up road safety initiatives.

Bermuda's new Police Commissioner was unveiled as former Royal Canadian Mounted Police officer Jean-Jacques Lemay.

April began with a headache for Works and Engineering as the repairs to Somerset Bridge caused anger from environmentalists, who feared the temporary causeway around the site might harm the marine life, and from water sports operators who couldn't get access to the Great Sound during the work.

Demolition started of homes at Southside, with workers wearing respirators because of fears over asbestos in the former US Naval personnel homes. The asbestos was stored in containers at a Government quarry whilst plans were made to dispose of the material. And Police announced a crackdown on bad drivers with a special task force taking to the roads to get the message home.

The scheme was re-introduced later in the year as road deaths reached worrying levels.

In business, plans were revealed for a new bank with a possible launch date in 1999. And there was bad news on the job front, when it was revealed up to 25 jobs could go at Cable and Wireless.

Back on the roads, residents didn't get too excited about a free ferry and bus service from the West End -- during the closure of Somerset Bridge -- with hardly an increase in numbers during the trial.

May began with good news for Government coffers when Russian airline Aeroflot said it was going to register 12 new jets on Bermuda -- bringing $400,000 in revenue.

And there was a fillip for drinkers and diners as plans were revealed to allow al-fresco eating and drinking on the pavements in Hamilton.

Premier Pamela Gordon started the month with a bang, with her first, and ultimately only, Cabinet reshuffle. Out went UBP veteran Quinton Edness and Environment Minister Irving Pearman, and in came Maxwell Burgess, Kim Young, John Barritt and Harry Soares.

There were more changes to come as UBP MP Grace Bell shocked the House of Assembly by defecting to the PLP. But she soon faced an uncertain future as it was announced she would not be defending her St. George's South seat at the election.

Bermudian film maker Alison Swan swept the board at the Bermuda International Film Festival, scooping the Entertainment Weekly Audience Choice Award for her romantic comedy "Mixing Nia''.

But there was no laughter at Saltus Grammar School after claims that exempted companies were getting places for their children as a thank you for cash put toward new school buildings.

Still in the classroom, Northlands Primary School head Dale Butler caused a storm when he strapped three pupils in front of the entire student body after they had been caught stealing.

Housing lobby the People's Coalition for Affordable Housing, fronted by activist Rosemarie Pedro, was angry after claiming they were barred from entering the Baselands site to view former US Naval accommodation, which they said could provide homes for those in need.

But long term residents received some good news when Home Affairs Minister Maxwell Burgess said they would no longer be forced off the Island after losing their jobs.

Jubilation was the order of the day in June when CedarBridge Academy celebrated its first year of operation with a graduation ceremony for its students. Unfortunately the event turned a little sour as the guests turned up for the party without tickets.

Tourism received a boost when MPs voted through an amendment which enabled the redevelopment of the Castle Harbour Resort, and figures revealed an increase in air arrivals but a fall in cruise ship numbers.

A report to the Government stated that a strike by BTC was illegal and criticised the Bermuda Industrial Union for not following the correct procedure.

Middleton trial causes international outcry Bermuda's old and historic buildings were elevated to a new status as a new "listing'' scheme was revealed -- enabling the Government to ensure protection and longevity for renowned and historically important structures.

London was the destination for the Grape Bay McDonald's appeal hearing, after formal leave to appeal to the Privy Council was requested by lawyers acting for the backers of plans for the first McDonald's burger restaurant.

Meanwhile, still in the UK capital, the Queen honoured former Bermuda Regiment Commanding Officer Lt. Col. David Burch and top lawyer Saul Froomkin QC with OBEs.

In July, the summer sun brought a headache for the Island's dog wardens, after it was revealed they were struggling under the pressure of work from complaints about dangerous dogs, noise and licences.

But there was better news for workers as the House of Assembly voted in the new National Pensions Scheme, meaning every Bermudian employee would have the right to save for their retirement. Still on a financial front, the Bank of Bermuda was hit by a body blow when MPs voted against plans to allow the institution to exempt from the 60/40 rule and raise capital on foreign markets.

Down on the beach, there was a mini-storm as officials at Elbow Beach Hotel gave into public pressure and removed signs warning the public that part of the bay was deemed private. MPs and conservationists became embroiled in a row over public and private beaches, whilst tourists just enjoyed soaking up the sun. And bad news for tourism as the Lantana Colony Club closed its doors with the loss of 60 jobs.

A photograph on the front page of The Royal Gazette caused uproar amongst readers, disgusted at the picture of two young boys holding up lizards they had captured.

Long term residents had some good news, when it was confirmed that those with 20 years standing would be eligible to stay in Bermuda after retirement, apply for jobs without restrictions and enjoy permanent residence.

News from the UK that full passport rights and residency for Bermudians in Britain could be linked to the abolition of hanging and birching angered Premier Pamela Gordon, who said the population would be consulted over any changes.

On a lighter note, the Royal Gazette mailed a pair of Bermuda shorts to Iraqi dictator Saddam Hussein, after it was revealed he had banned his people from wearing shorts because "they inflame the passions of women''. It is not known whether or not he received the shorts.

Two of the Island's largest and most famous hotels were sold to Canadian Pacific Hotels in a $540 million deal which included five other world hotels.

And Premier Pamela Gordon unveiled her latest plan in the fight against crime, as she presided over the first of many crackhouse demolitions. And the Police on the beat looked set to get hi-tech bullet-proof and stab-proof vests, which were being tested by the Home Office.

British Airways caused a stampede when they announced a $330 fare to Bermuda from London. The sale, which took place over a weekend, caused phone lines to be jammed but created a mini-boom for the Island's hotels in the late summer.

In September, there was a furore after a nursery school employed a woman who had a conviction for child abuse. Some called for the removal of Gloria Holdipp from the Happy Moments nursery in Hamilton Parish.

PLP MP Dr. Ewart Brown set the controversy straight over his US citizenship by confirming he had surrendered his US passport. The act ended any discord over his right to sit in the House of Assembly.

More trouble for the PLP, when potential candidate Rodney Smith evicted a tenant and left her belongings on the doorstep. He was carpeted by party bosses and eventually stepped down as a hopeful for the election.

And another storm passed by in the form of Hurricane Danielle, which brushed by the Island early in the month. It was nearly 200 miles away but still managed to cause power cuts, ocean surges and flight delays, as well as numerous accidents.

The newly renovated Somerset Bridge reopened after months of refurbishments and permission was granted for a new $60 million hotel next to the Par-La-Ville car park.

Cruise ship security came under the spotlight after a number of arrests for drugs offences. Tour firms pledged they would check employees more thoroughly in the light of the swoop -- the announcement came as the Tourism Department revealed new cruise ship contracts that would mean a new ship for the Island.

Bermudians had success in the Commonwealth Games in Malaysia, with tenpin bowlers Antoine Jones and Conrad Lister scooped Silver in the mens' doubles.

The planned World Conference of Mayors ran into trouble as organisers and Government officials traded blows over the promised package for the event -- and work that was already said to have been done. And there were more revelations when the Bermuda Industrial Union confirmed it had made a $40,000 loan to the organiser Bonnie Marshall.

Armed robbers who raided the Somerset branch of the Bank of Bermuda were found guilty in the Supreme Court. Rupert Elroy Archibald received the heaviest term, 30 years, for his part in the raid. Accomplices Yusef Ameerbakka DeSilva and Michael Eugene Dillas were both jailed for 18 years.

Complaints against the Police would be dealt with by a new body, the five-man Police Complaints Authority -- which would investigate grievances by the public against the force.

And long-time UBP MP and Environment Minister Harry Soares announced his intention to stand down at the upcoming election.

Good news for hotel workers in October, when it was revealed that an exchange scheme was to be set up to enable staff to gain experience in other countries.

Bermudians would work in the European country's ski resorts during the winter and Austrians would help out on the Island during the busy summer period.

And still on the hospitality front, at the Airport it was revealed that $46 million will have been spent on the renovations by the year 2005. The arrivals area was opened, complete with new taxi rank in December and there is more to follow.

And there was promise of fireworks a few days earlier, when Premier Pamela Gordon ended months of speculation to name the election day as November 9.

Although campaigning had been going on unofficially for some time, it signalled the start of the most intense period of political publicity ever seen in Bermuda.

The gloves came off once the nominations were in, with breakaway PLP supporter Kenny Bascome standing in PLP Leader Jennifer Smith's St. George's North seat and lawyer Phil Perinchief trying his luck in Pembroke West.

And there were also stormy waters when a Cuban trawler brought to Bermuda by a local businessman was held at anchor, following concerns over the crew and their status. The problem was resolved after an inspection to grant the Jurel a fishing licence was made and the vessel returned to Cuba to sort out any permit problems.

Election campaigning reached a crescendo in the first week of November and so did Tropical Storm Mitch, which passed the Island after wreaking havoc in Central America. High seas and strong winds were the only effect on Bermuda.

There was much hot air after an advert featuring PLP candidate and later to be MP Delaey Robinson with a target imposed over his head and question marks over him being a possible new Finance Minister. The adman responsible for placing the ad resigned but Mr. Robinson rejected subsequent apologies and called for the businessmen responsible to come forward.

As November 9 dawned, chests were puffed out and brave smiles ruled as the PLP and UBP went head to head on the hustings in what was widely predicted to be the closest election for years.

But hours later Bermuda was looking down on a scene of jubilation as the PLP swept into power with a massive majority of 26 seats to 14. Jennifer Smith became the first woman leader to take her party to victory.

A wild party erupted on Court Street as the returning PLP heroes were hailed by the crowds -- contrasting with the muted scene at the Surf Club where the UBP gathered to lick their wounds after its first ever election defeat.

In the victory -- also the first ever for the PLP -- several top UBP Ministers lost their seats. Maxwell Burgess, later to become a Senator, Wayne Furbert and Jerome Dill were all ousted, as were veterans Quinton Edness and Anne Cartwright DeCouto.

Over 80 percent of the voting population took part and the PLP gained a massive mandate from Bermuda -- although the UBP percentage of the vote fell from 50 percent in 1993 to 44.5 percent.

Soon after the new Cabinet was sworn in, widely seen as "moderate'', and the celebrations continued as Ms Smith and her team were feted everywhere they went.

Back at the decimated UBP, Pamela Gordon was "off the Island'' but arrived back to take on the reins as Leader of the Opposition.

Jennifer Smith looked forward to an extended "honeymoon'' period and pledged to work for a "new Bermuda'' for everyone. Later, she pleased some and irritated others by announcing a one-day holiday on January 4 to celebrate the victory.

There were also major changes at the Royal Gazette as David White announced his retirement after 33 years at the paper -- 22 of those as Editor.

The ill-fated World Conference of Mayors came to Bermuda and ended in controversy as organiser Bonnie Marshall was served with a writ by the Bermuda Industrial Union for $40,000 they had lent her to help stage the event, which failed to live up to its expectations in terms of numbers.

Ms Marshall was prevented from returning to the United States whilst legal matters were sorted out.

The Rebecca Middleton murder trial, which started in late November, continued in December with the jury hearing the horrific and graphic details of the slaying of the 17-year-old Canadian girl on July 3, 1996.

But the proceedings came to a dramatic end, when Puisne Judge Vincent Meerabux ordered the jury to find Justis Smith, 20, of Pembroke not guilty of premeditated murder.

The controversy rumbled on in the days to follow as the Canadian public joined with Bermudians in their anger at the way the proceedings had been conducted.

Questions were asked of the role played by former Attorney General Elliott Mottley -- who left the Island for good just days before the trial ended -- in accepting a plea by Kirk Mundy of accessory after the fact, and of the way the investigation was handled.

Rebecca's parents, David and Cindy Middleton both backed calls for an inquiry into the case but said they didn't support a boycott of Bermuda, called for by many Canadians who visited a special Internet website in their thousands.

The Attorney General's Chambers said they intended to appeal the judge's decision.

Staying close to tragedy, top Government Ministers and officials, together with Police Commissioner Jean-Jacques Lemay vowed to end the Island's road death toll. By the end of the year it had reached 17 -- a higher ratio per capita than the US or UK. In a bid to slow traffic down, the Police announced a 24 hour surveillance operation on the roads to run indefinitely.

The year ended on a troubled note after much public debate over the release in to the community of Chesterfield Johnson, who completed his term of 20 years imprisonment for the murder of 11 year old Connie Furtado. Many parents were concerned and at least one school issued a warning to parents over child safety.

DATE WITH DESTINY -- Then Opposition Leader Jennifer Smith casts her vote on November 9. By the end of the night her party had secured its first-ever victory with a commanding 26-14 majority.

Graphic file name: JENNI NEW JOB -- Pamela Gordon gets used to her new position as Opposition Leader.

Graphic file name: PAMMI