MPs have agreed to increase the fees for most vehicle licences by five percent — despite opposition claims that the rise will hurt taxpayers during tough economic times.

Two bills — the Motor Car Amendment Act 2010 and the Auxiliary Bicycles Amendment Act 2010 — were passed in the House of Assembly on Friday.

Premier Ewart Brown said the first piece of legislation — covering 18 classes of vehicles — would bring in more than $24 million in revenue to Government. The second bill, covering rental bikes and privately-owned auxiliary cycles, should generate almost $390,000.

He told MPs that there were 44,684 vehicles on Bermuda's roads covered by the first bill, including 22,578 motor cars and instructional vehicles, 15,677 motorcycles, 4,074 trucks, tank wagons and tractors and 600 taxis.

The second bill covers 4,397 privately-owned cycles with an engine capacity of less than 50cc and 1,582 livery cycles.

Licences for private bikes with engines under 50cc now cost $58.40. Motorcycle licences are between $83 and $146, depending on engine size. Car and instructional vehicle licences cost between $281 and $1,551, depending on length. Taxi licences are $302.95.

Dr. Brown said Government ensured licence fees stayed the same for the last two years and derived no pleasure from raising them this year. "These are not normal times," he said.

Shadow Works and Engineering Minister Patricia Gordon-Pamplin said of the increases in the first bill: "When you combine that with everything else we have heard over the course of the last several weeks, I just don't know how people are going to survive.

"I don't know how they are going to make ends meet. I think we have to show a little bit of empathy. We have to show a little bit of concern."

She said rental bike businesses, already suffering due to low visitor numbers, would be hurt by the second bill, which increases a livery licence to $83.95.

"I think they are being unduly penalised," she said, adding that the expected revenue made it hardly worthwhile to implement. "I think we are being penny wise and pound foolish."

Dr. Brown said: "We consulted with the livery owners and they are quite happy and satisfied with this adjustment."

Opposition leader Kim Swan said costlier licences would cause further hardship for small truck drivers already suffering in difficult financial times.

Bermuda Democratic Alliance MP Shawn Crockwell said the car licence increases put more of a burden on taxpayers, especially families who had to buy large vehicles to accommodate children.

"I know many families dread that time of the year when they have to licence their vehicle. They have to make all sorts of sacrifices to foot the bill."