Senators yesterday.

Government Senators warned the increase was needed to hold down the loss on the Post Office of up to $1 million in the financial year.

But Government Senate Leader Lynda Milligan-Whyte said -- even with the increases -- the deficit would still be more than $580,000, compared to a loss of $46,000 in 1992-93.

She said the amendment would raise the cost of postage from between 2 and 25 percent.

But Sen. Milligan-Whyte, who introduced the legislation, said the average rise in postage and postal services like mailboxes would be 10.5 percent and was the first increase for four years.

She said the Post Office now had to combat electronic messaging using computers, faxes, as well as private courier services.

She added: "There has been a significant decline in volume with respect to overseas mail.'' PLP Sen. Terry Lister said it was refreshing to hear that the increase would be first since 1992 because the public perception was that they were always being milked.