have not increased, a Senator warned on Wednesday.

Sen. Alf Oughton (Ind) issued the warning during debate on the new Payroll Tax, which combines Hospital Levy and Employment tax in one levy.

The employees' portion of the tax had increased from two and a half percent of wages to four percent in recent years, said Sen. Oughton.

But the percentage paid by employers remained the same at seven and a half percent.

But Parliamentary Secretary for Finance Sen. Lynda Milligan-Whyte replied the rationale behind the taxes was that everyone should shoulder the burden of the Airport, which had added about $17 million to Government expenses.

BANKS HAVE HAD A `FREE RIDE' Banks have had a `free ride' Local banks' high profitability showed they have had a "free ride'' for too long, an Opposition Senator said yesterday.

The Banks and Deposit Companies (Fees) Amendment Act 1995 doubles the two major banks' annnual licence fees to $1 million.

Sen. Terry Lister (PLP) urged Government to take steps to prevent the banks from passing on the costs to consumers through additional bank fees as in the past.

He added that deposit companies vary in size and profitability and fees should be differentiated accordingly.