The Commons transport committee has launched a fierce attack on plans for a European satellite navigation programme, saying the UK must bring the scheme to a halt.

The European Commission is leading plans for a new system of satellites, known as the Galileo project, to provide detailed navigation data for civilian use.

But in Monday's report, the MPs said they had serious concerns about the project and the lack of a clear assessment of its costs, benefits and risks.

And there was further criticism of a Commission move to pay the multi-billion pound cost of the scheme by transferring funds from other budgets, such as agriculture.

The system, which could have 30 satellites if completed, is currently running five years late while the public-private partnership that was intended to build it has collapsed.

Committee chairman Gwyneth Dunwoody said that funding for better railways and roads was being transferred to "giant signature projects in the sky".

"If this is not stopped, Europe could end up with an orbiting Railtrack which may be  obsolete even before it is operational," she warned.

"The government must stop this folly, and endeavour to bring the European Commission to its senses.

"The Commission is poised to spend billions of taxpayers' money on a satellite system without any realistic assessment of its costs and benefits.

"To fund this, it is prepared to break all the rules for prudent budgetary discipline. This cannot be allowed to proceed.

"We must have independent and up-to-date evidence that proceeding with Galileo is worthwhile, and if it can be demonstrated that Galileo offers good value for taxpayers' money, any decision on funding must be based on sound management of European Union budgets.

"Given the sums of money involved, such decisions must be made only by the unanimity of all EU member states."