The Transport Select Committee has called on the government to do everything in its power to prevent the European Galileo satellite navigation programme going ahead in its current form. The committee argues that rigorous cost-benefit analysis must be produced to vouch for the continued merits of the project.
It is also concerned by the European Commission's plans to transfer several billion euros from other EC budgets to fund the Galileo project.
Committee chairman Gwyneth Dunwoody says: "What taxpayers in the UK and other European countries really need and want are better railways and roads, not giant signature projects in the sky, providing services we already have from GPS and other systems."
Galileo will ultimately have 30 satellites, but so far only one has been launched even though the programme was initially due to be completed by next year it is currently five years behind schedule.
Dunwoody adds: "The government must stop this folly and bring the EC to its senses. We must have independent and up-to-date evidence that proceeding with Galileo is worthwhile - and if it can be demonstrated that it offers good value for taxpayers' money, any decision on funding must be based on the sound management of EU budgets."