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Oil deal means half-price bus travel for 250,000
Last updated at 08:30am on 21.08.07
Ken Livingstone says the deal with Venezuela is an historic breakthrough for London
Up to a quarter of a million Londoners are today eligible for half-price bus and tram travel as Ken Livingstone's Venezuelan oil deal finally went live.
The travel scheme, worth up to £280 a year for everyone on income support, follows an agreement by Venezuelan president Hugo Chavez to give the capital discounted fuel for its bus fleet.
In return for the 20 per cent discount on oil, Venezuela will get City Hall expertise in public transport and tourism provided free of charge.
The launch of the scheme has been shrouded in secrecy but the Standard can reveal that it becomes operational today.
Londoners on income support will have to take proof of their status to a post office to get a special photocard for a discounted Oystercard.
Further details will be given as the Mayor publicises the scheme alongside Transport Commissioner Peter Hendy today at City Hall. Tories have criticised the idea as a classic piece of "Red Ken" gesture politics and have said that a country like Venezuela would do better to use such discounts on its own people.
Assembly member Richard Barnes has described President Chavez as a "third-rate dictator with an appalling human rights and democratic record".
But Mr Livingstone was today adamant the deal was a historic breakthrough for London. "This will make it cheaper and easier for people to go about their lives and get the most out of London," he said.
"The agreement which makes this possible will also benefit the people of Venezuela, by providing expertise in areas of city management in which London is a world leader, such as public transport, planning, tourism and protection for the environment."
The Mayor says the scheme will lead to no increase in the London bus fleet's consumption of oil, and therefore no increase in carbon emissions.
The 20 per cent discount from the Venezuelan oil company Petróleos de Venezuela Europa is calculated on the prevailing world price of oil, assessed twice a year.
The Mayor's office today revealed that the oil deal was worth between £10-12 million when measured by current oil prices and exchange rates.
The saving is equivalent to slightly under one per cent of the total cost of providing London's bus service.
In return, a team of officials from the Greater London Authority will work in Venezuela advising on recycling, waste management, traffic and on reducing carbon emissions.
Kate Green, chief executive of Child Poverty Action Group, said: "Central London has the highest rate of child poverty in the country, with half of children living below the poverty line.
"Lone parents families and those with disabled parents are at particular risk of child poverty. As the main recipients of Income Support, these families will directly benefit from more affordable travel and London will be a more inclusive community for those affected by poverty."
Joseph Kenney runs the Citizens Energy programme in the US cities of Boston and New York that receives an oil subsidy from Venezuela.
The saving is then invested in heating the homes of the elderly and least well-off residents.
He said today: "The poor today, whether in London or New York, have to face cruel choices between heating and eating and other basic needs such as transportation.
"A hearty 'well done' to all those who made this happen."
People on Income Support usually have an income of less than £83 a week. They cannot work for more than 16 hours a week.
Reader views (38)
Here's a sample of the latest views published. You can click view all to read all views that readers have sent in.
Cheaper transport for the poorest - who can dare criticise this? I know- the question is rhetorical!
A fair exchange not extortionate consultancy fees.
Well done to Ken and to Londoners for voting for a mayor who leads, and well done to Presdient Chavez and the Venzuelan people who have voted for him by an increasing majority in over ten elections in less than ten years. Both popular political leaders delivering on popular policies - I wish there was more of that in this world!
- Richyrich, London
This is bad form. London should be better than this. I am quite ashamed.
- Arthur, London
If we have surplus 'transport and tourism experts' sitting in City Hall, fire the lot of them instead of using them as an indirect subsidy for free transport.
- Ces, London
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