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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.
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
Free travel cards for social cases on an overcrowded transport creaky system do not make sense.
- Georgie, London
Anne- that was exactly my point, If you dont want to pay to go to work you dont have to, the benefit system is open to anyone, but do you really want to "sit drinking special brew" becuase no one is saying you HAVE to go to work.
- Daveb, London
I am absolutely stunned that this piece of good news has provoked such bitter remarks. How can these people not see any good in having cheaper travel for those less well off? Are these people just plain miserable, or is the weather just putting everyone in a bad mood?
- Caroline, London
All this whingeing!
1) The hard working people of London are not subsidising anyone else - the point of this deal was that the cheap travel is being paid for by finding an alternative way of cutting fares other than cross subsidisation.
2) A bus fare from from zone 1 to zone 2 is cheaper now (£1 with oyster) than it was 10 years ago (£1.20) so Ken has reduced fares for all of us, working or not.
3) The oyster fare is due to come down to 90p for ALL bus users.
4) If through cheap oil supplies Venezuela is paying to get a "workshy layabout" to the job centre, then you aren't through your taxes.
Great scheme all round I think.
- Rachel, London
Daveb from London - I understand that a small percentage of those being given the free travel may wish to have an "active contributive lifestyle" however those on the buses I seem to have to get onto when travelling to work daily are generally keen on getting to Asda/Lidl/Aldi to purchase cheap lager to drink while sitting round the streets for the rest of the day.
At least if they're going to give this incentive to London’s non-working population wouldn’t' it makes sense to only allow travel during off peak periods so at least those who work and pay for travel have a chance to get on a bus! I do think that given them carte blanche to travel all day every day is completely ridiculous - why on earth should I pay to go to work when Joe Bloggs can sit drinking special brew on the bus for free?
Yet again the working people of London are Ken's last thought
- Anne, London, UK
How long is this maniac Livingston to be allowed to fool "some of the people some of the time?" He is obviously mentally unstable and needs to be replaced as soon as possible.
Could the Standard begin a countdown of days toward his dismissal?
- Sidney Marks, Brighton, England
Why does Hugo Chavez not solve the poverty in his own country first. Ken Livingston would no doubt love to have the absolute power that Chavez has carved for himself, so he can president for life. If he (Ken) wants to lick the boots of the Caribbean Mussolini, it is up to him, but not in the name of Londoners. Perhaps if we did not waste money on entertaining Ken's friends, we would not need to go cap in hand to such unsavoury people. Can we now look forward to Ken closing down radio/ TV stations which do not agree with him? Roll on Boris or ABK (anyone but Ken).
- Beatriz, London
Paul Atkin - Do you think Hugo Chavez could come to Britain and eliminate our literacy problem? I think you have been looking at the Venezuela Tourist Information site when you make such comments. Ken, like Blair, has run out of steam and has to rely on gimmicks to stay in the press.
- Don, London
The attitude of "great for scroungers" makes me feel sick, if you really think these people have it better than you, you can join them if you really want, and claim benefits, yet most of you would find it mind nubbingly dull if you didn't work, so yeah, they may get free bus travel...but wouldn't you rather have an active contributive lifestyle? The option is always there, stop having a go at people to make yourselves feel better!
- Daveb, London
With luck, the discount will only given for one way tickets out of London for the scroungers who will use it. Ken, out of the goodness of his heart will then reduce my council tax as I'll no longer need to support these people; the streets will be safer; I will no longer have to lock my front door when I go out; my children will be able to play in the road without the risk of being knocked down by an uninsured/un MOTed car; the sun decided to come out in August -then I woke up.
- Carl, London
Well done Ken. You're running out of ideas and with any luck you will be run out of office. £2 for a bus journey is criminal. As Shirley says why don't you help those who are already up and about making a living rather than giving those on income support even more of an excuse to do even less? Why don't you put the money to better use i.e. the Met Police where we all need more protection from crime, people are being killed sitting in their own cars, on their doorsteps, on the way home from work? Ken do you see a pattern forming here or are you once again choosing to look away?
- Jg, London
Ken seems to be on the side of himself and his hairbrained schemes only. How are they going to regulate this? Yet another incentive to stay on benefits. If you are on income support and looking for a job and get one, do you expect they will hand in the half price oyster? Hell no. The usual will be that it will take months to realise who is and isn't on income support with our benefit system.
Why should Londoners support this after all, jobseekers and patients travelling to hospitals and lots of other reasons do if I recall get to claim back travel expenses for job interviews and travelling to hospital. So I guess there will be a lot of dodgy double claims again. I don't understand why this discount is not passed onto everyone and kids should no longer get free transport. I for one am sick of the fights and abuse from kids on the bus, who have no incentive to walk anywhere or pay when its handed on a plate. Thus again the mentality is instilled that no one pays for anything.
It pays not to have a job anymore, why bother! I wish the UK would get a grip on its self destructive behaviour.
- L.A., Bodrum, Turkey
Wake up! Election on the horizon.
- Mike, England
Another knife in the back to every hard working Londoner. Does Ken think that everyone who works in London gets paid a good enough salary to justify this? I for one can barely afford to pay my own extortionate travel costs, let alone subsidise the scroungers and work shy. I am sick of the so-called leaders of this country/capital wasting our money like this.
- Helen F, Kent
There's surely something wrong when London, one of the world's richest cities, accepts subsidies from a country with a per capita income of around $5,000 and where, despite Chavez's efforts, many more people live in poverty than do so in London. I question the morality of this deal.
- Stewart, Glasgow
Well done Ken! The Tories could never have done this because of their phobia of elected governments who don't bow to big business interests. Chavez has gifted his country's poor to such luxuries as universal health care and vastly improved literacy rates, things which are taken for granted in the UK. Now he is using his oil wealth to shame the US and the UK for their poor treatment of the disadvantaged. Good on him! And kudos, Ken, for bagging such a good deal for both Londoners and Caracans.
- Marc Brett, London, UK
Yet another example of giving to those who can't be bothered to help themselves. Apart from pensioners, there should not be any discounted travel for those on income support etc. I support myself and am fed up with my money making life easier and easier for those too lazy/unwilling to help themselves. Give me, as a London worker, a discount Ken! It's people like me who keep London churning over.
- Shirley, London
Discounts for the layabouts & scroungers. Business as usual.
- Annabelle, London
Chavez is no saint. His methods do not stand up to scrutiny and his democratic credentials are pretty tainted.
- James, London, UK
I use to live in London. This a good idea for those who are seeking work. I understand that some of those who do work are resentful of this idea, but perhaps we need to think for the moment of all those foul mouthed, violent, bullying, rude, pushing and litter bugs we call our children jumping from one stop to the next stop because they don't have to pay. Perhaps if Ken lowered the fare for everybody, by reintroducing a fixed rate for them, perahps that would make it fair.
- Neil, Ipswich
Where will the money be found to pay the civil servants to hand out the "free" advice to Venezuela? Where will the money be found for numerous "fact finding" trips to Venezuela? I'm quite sure that after a year or 2 we'll all read about the scandal of every £10 saved in the oil deal created £12 of costs in civil servant wages, pensions, expenses, trips, staff cars, hairdos etc. And maybe a token job creation by Ken, perhaps "Oil advisory Supremo" on £100K a year, a good number for one of his chums. When will the people wake up?
- George, London
Nice of Ken to let these people see London at my expense, how kind of him to be so thoughtful. Most of those on income support are illegal immigrants, economic migrants who can't get jobs or people who are unemployable and we will have to foot the bill, yet again. The so-called officials will have all expenses paid for by the poor London tax payer, again. Nice job if you can get one.
- Stephend, London, England
London to provide it's "expertise" then the poor in Venezuela are shortly to find they will face a new tax on movement, known as The CC along with roads blocked off and a prohibition on aspiring to car ownership, but on the upside may get a discount on a new bicycle.
In the meantime working Londoners will fund the "experts" who will also need to make lots of trips to "appraise the situation"
- Frank H., London
Why can this not knock a penny or two off the price of Oyster for everyone? Why should it just be for income support. Read work shy layabouts who've spent the last 10 years ligging off the Labour Governments.
- Neil, Notting Hill
People on income support are NOT working! Why not discount travel for everyone or is it another example of hardworking people being penalised for working and paying their way. What a joke.
- Rebecca, London
Something does not add up with this one. Who is going to pay for the short fall in VAT and excise duty? I presume it is the hard pressed Londoners who will have to pay for yet another of the mayor's follies and miscalculations as well as his electioneering.
- Alexis Dogilewski, London, England
This is a good deal for London and a good deal for Venezuela. How can Richard Barnes describe Hugo Chavez as a dictator when he has won election after election since 1998 with increased shares of the vote every time, despite an attempt to overthrow him by force in 2002, and has carried out policies that have eliminated illiteracy, provided free health care for the first time and sharply reduced poverty?
Do Conservatives always show concern that developing countries should invest at home instead of in wealthier countries, or do they save this for when the investment is in support for the worse off rather than when wealthy elites stash their cash in developed countries banks?
If other Oil rich countries invested in their people like this, and tried to generate bottom up democracy of the sort Venezuela is developing, the world would be a better place.
- Paul Atkin, London UK
This is fantastic news for London's most impoverished communities. All those involved should be congratulated. Hopefully this will highlight the positive work of President Chavez's government in Venezuela, which has used the country's oil wealth to provide free medical care to millions who had never seen a doctor and eradicated illiteracy.
- Gareth Nicholas, Sheffield, UK
Blood money from a dictatorial tyrant. A shameful day for London and democratic ideals.
- R M, London, UK
Why can't bus fares go down by 10 pence so everyone benefits...about time Ken did something for hard-working Londoners!
- Catherine, London
So basically public servants paid for by Londoners sort out Venezuela's transport problems for free rather than dealing with the multitude of issues here and a few people on income support get cheap travel. My God what a waste of time and our money. Come on London get ride of this idiot before he bankrupts the city with these ridiculous schemes!
- Colin Austen, London
If all those 'older' teenagers in their 20's who are allowed onto buses because drivers never ask for their passes where actually expected to pay, then even more people in need of discount might get it. Or alternatively the expensive fares of those of us who still pay could be reduced!
- Mm, Hackney
What an excellent initiative. Both groups of people benefit and poverty will be reduced in both countries. Well done Ken and Venezuela!
- Matthew Willgress, London, England
Well done, Ken! A bold step to help make London affordable for those who need it most. Can't imagine Boris completing a deal like this!
- Paulo Ucello, London UK
How about rather than giving freebies away every year, he actually starts reducing the amount the rest of us actually pay? Mr Livingstone seems to be raking in money from every direction, congestion charging, upping his Council tax fees by 14% every year and like most Londoners I've yet to see any improvement to my life, so what am I paying him for?
- Terry Roll, London
