MPs on Friday approved a measure which should net Government an extra $1.3 million a year.

The Companies Amendment bill increases certain fees and penalties payable by companies.

"There have been no increases since 1996 and the Government is concerned about these levels,'' Finance Minister Grant Gibbons , who piloted the legislation, told the House of Assembly.

The increases on average amount to 4.1 percent.

Also on Friday, Transport Minister Wayne Furbert gave the second reading of The Traffic Offences Procedure Validation Act, but eventually agreed to withdraw the bill temporarily following strong opposition from the PLP benches.

Acting Health Minister Quinton Edness then unveiled Government plans to amend hospital fees and insurance acts.

Hospital fees are set to go up by six percent after MPs approved the Bermuda Hospitals Board (Hospitals Fees) Amendment Regulations 1998.

But PLP MP Dr. Ewart Brown suggested that the hospital needed to be more efficient.

"Throwing good money in the wrong direction is not the answer,'' he said.

Dr. Brown admitted that doctors did play a role in the cost of health care, but stressed that local doctors were cheaper than their American counterparts.

"Doctors are a small part of the costs,'' he added. "Hospitals are the big costs.'' And he argued that technological advances, unnecessary surgeries and insurance companies all contributed to the spiralling costs of health care.

Deputy speaker Stanley Lowe said that Government needed to look at the effects of health care costs on seniors.

Currently Government covers over 80 percent of their health care, but he argued that often Seniors have to pay full premiums to received coverage for the 20 percent not covered by Government.

MPs approved a number of regulations, including The Hospital Insurance (Standard Hospital Benefit) Amendment Regulations 1998 was also debated in the House.

Dr. Gibbons explained that the regulation increased the maximum payable amount for kidney transplant cases.

He said that it would improve the quality of life for some patients and would help decrease costs since in some cases it was cheaper to pay for a transplant than lengthy dialysis.

Shadow Health and Social Services Minister Renee Webb asked the Finance Minister how many locals received kidney transplants and Shadow Human Affairs Minister Dr. Ewart Brown argued that other illness' deserved the attention kidney transplants received.

Dr. Gibbons pointed out that kidney problems were often a side effect of diabetes of which Bermuda had a "very high rate''.

Also passed were the Hospital Insurance (Deductions) Amendment Regulations 1998.

Dr. Gibbons said the regulations dealt with the process by which employers and employees shared the costs for hospital insurance.

Noting that the regulation was "basically a bookkeeping item'', Ms Webb asked the Finance Minister who "polices'' to ensure that premiums were paid and that employers were held accountable.

Dr. Gibbons said that the Social Insurance department kept an eye on the matter.

In addition, MPs passed The Hospital Insurance (Artificial Limbs and Appliances) Amendment Regulation 1998 was debated by MPs.

Dr. Gibbons said the regulation increased the maximum payable from $10,000 to $15,000 for artificial limbs or appliances.