Legislators on all sides last night joined in blocking the proposed increase in water charges.
They passed a motion from Democrat Fred Li Wah-ming freezing eight proposed rises in residential and industrial rates, ranging from 8.5 per cent to 9.3 per cent.
The proposed freeze gained massive public support with more than 34,000 signatures collected from the public and catering industry.
The freeze may cut Government revenue by $200 million a year.
The Government also faces defeat next Wednesday, when a planned 15 per cent rise in sewage charges will also likely be blocked.
Legislators stressed it was not appropriate to increase charges in light of the weak economy.
'The Government said the increase was at a level similar to the inflation rate. But how many workers in Hong Kong have had a pay rise at the same level of inflation? In fact, their living standards are now declining,' Mr Li said.
