Senators approved the increases yesterday after Government Senator Patrice Parris said the rise usually occurred every two years and thus was lower than the rate of inflation.

However United Bermuda Party Senate Leader Maxwell Burgess attacked the rises which he said would hit a growing underclass in the passing of the Motor Car Amendment Act 2001 and the Auxiliary Bicycles Amendment Act 2001.

He said: "The downtrodden and the single parent homes are in trouble and they are growing and growing. And what are we doing? Business as usual.'' He said the rises did not necessarily have to happen every two years and that if the Government wasn't blowing money on fast ferries and other capital projects, licence fees could have stood still.

But Progressive Labour Party Senator Calvin Smith said Bermuda's taxation had always been based on consumption taxes rather than income taxes.

He said: "This is the kind of taxes we are stuck to dealing with. We are going to have it for ever.'' "We are stuck with a system used since time immemorial but even businessmen are seeing the burden where the economy is going in the wrong direction.'' Senator Michael Scott said Government's way of redressing burdens on the lower paid who had to pay the same rate as everyone else in consumption taxes was to spend money on capital projects.

Senators also approved increases to a $500,000 hike in Government fees paid by the Island's two main banks by passing the Banks and Deposit Companies Fees Amendment Act 2001.

Independent Senator Walwyn Hughes queried why the money was going to Government rather than the Bermuda Monetary Authority when the rationale for the hike was to help pay for increased monitoring of the banks.

Sen. Burgess said as all of Bermuda benefited from business brought in by the banks islanders should also be asked to chip in.