The Senate unanimously passed a bill that will see new tow truck operators pay $50,000 for a permit.

The fee applies to new permit holders only, meaning the approximately 12 to 15 tow trucks currently on Bermuda's roads will be exempt.

Senator Michael Fahy questioned whether the Motor Car Amendment (No 2) Act 2009 was a "protective mechanism" for current licensees against competitors.

"Fifty thousand dollars for new entrants seems like a lot of money for persons looking to get engaged in the business," he said Wednesday.

Senator Marc Bean defended the $50,000 fee as fair when compared to permit costs for other vehicles, namely $50,000 for a boat trailer, $65,000 for a lunch wagon, $80,000 for a dump truck or tractor trailer and $100,000 for a rental truck.

He added that these fees had not prohibited new entrants to these other markets, saying: "It's either you're prepared, or you're not."

The bill passed in the House of Assembly earlier this month by a very narrow margin, with the Government winning 13-11. The deciding vote came from Independent MP Wayne Furbert, who argued that his former UBP colleagues were playing politics with the bill.