US:DEMOCRAT BARACK Obama said yesterday he would forego public financing of his general election campaign against Republican John McCain, reversing an earlier stance and positioning himself to outspend McCain in the White House race.
Senator Obama said in a video message to supporters he would refuse $84 million in public funds available for the November general election. He is the first US presidential candidate to bypass the system since it was created after the Watergate scandal in the mid-1970s.
His decision drew immediate condemnation from the McCain campaign, which has signalled so far he would participate in the system.
Later, however, Senator McCain said he might also forgo public funding. "We'll have to re-evaluate in light of his decision," the Arizona senator told reporters after touring flood-damaged Iowa.
If Senator Obama had taken public funds, he would have been barred from taking additional donations and limited to spending $84 million in the two months between the Democratic convention and the November 4th election.
The move was widely expected, given Senator Obama's record-smashing fundraising in a presidential election that will be the most expensive in US history.
Senator Obama said last year he would take general election public funds if his Republican opponent did the same. "It's not an easy decision, and especially because I support a robust system of public financing of elections," he said in a video message e-mailed to supporters.
"But the public financing of presidential elections as it exists today is broken and we face opponents who've become masters at gaming this broken system," he said.
Senator McCain raised far less than Senator Obama during the primary battle. Senator McCain's campaign said Senator Obama had tarnished his image as a reformer. "Today, Barack Obama has revealed himself to be just another typical politician who will do and say whatever is most expedient for Barack Obama," McCain spokeswoman Jill Hazelbaker said in a statement.
"The true test of a candidate for president is whether he will stand on principle and keep his word to the American people," she said. "Barack Obama has failed that test today, and his reversal of his promise to participate in the public finance system undermines his call for a new type of politics."
Senator Obama built a formidable grass-roots financial machine during his primary battle against Hillary Clinton, raising more than $265 million from more than 1.5 million donors, many of whom gave in small increments.
Senator McCain raised $96 million so far during the primary season. But his fundraising has quickened in recent months, and his campaign will be aided by the Republican National Committee, which has raised far more than its Democratic counterpart.
Senator Obama said his decision would limit the influence of special interests and force him to rely on his army of grass-roots donors. By contrast, he said, Senator McCain and the Republican National Committee were fuelled by contributions from Washington lobbyists and unlimited spending by special interest groups.
"Instead of forcing us to rely on millions from Washington lobbyists and special interest PACs, you've fuelled this campaign with donations of $5, $10, $20, whatever you can afford," Senator Obama said in the video message.
Senator Obama had said he would discuss with McCain an arrangement on financing, but his campaign said a meeting between lawyers indicated there was no basis for further discussions.
The public funds are paid for by taxpayers who check off a box on their tax returns allowing a $3 contribution. - (Reuters, Bloomberg)