Taxpayers Group Says New FreedomCAR Initiative Is A Waste Of Taxpayers' Money.

The National Taxpayers Union (NTU) said that the Bush administration FreedomCAR initiative is a waste of taxpayers money. According to a recent study by the 335,000-member NTU, FreedomCAR's fiscal foundation is shaky at best and is likely to crumble as this venture progresses.

"When federal bureaucracy replaces American ingenuity, it can only result in a stagnant, stifled economy," said NTU President John Berthoud. "While researching options for environmentally sound vehicles should advance, its progress should not be dependent upon government funding."

As the NTU study reports, the recent popularity of the FreedomCAR program may have many believing that it is a new idea. In actuality, the FreedomCAR program merely replaces the "Partnership for a New Generation of Vehicles" (PNGV) program that was instituted in 1993 by the Clinton Administration and partnered with the nation's auto manufacturers.

The PNGV's ultimate endeavor was to develop an automobile that could get 80 miles per gallon, a goal that was never accomplished (even after a $1.5 Billion government subsidy). Meanwhile, two independent companies, Honda and Toyota, were able to create and market hybrid gas/electric cars. The Toyota Pirus already averages 50 miles per gallon and with continued research, the rate of 80 miles per gallon could be reached.

"What PNGV failed to accomplish after nearly a decade, the private sector has already come close to achieving," noted Berthoud. "Most importantly, they did not receive a huge transfusion of taxpayer funds."

The NTU study attributes the cause of likely failure not only to the troubled history of government intervention with the free market, but also to the poor management of the agency overseeing this project, the DoE. Named one of the most inefficient organizations in the federal government by the National Research Council, even DoE's current Secretary, Spencer Abraham, supported the agency's complete abolishment when he served in the Senate.

NTU is a non-profit, non-partisan organization that works for lower taxes, less wasteful spending, and accountable government at all levels.