The Mayor of London Ken Livingstone today signed an agreement with the Venezuelan oil company Petróleos de Venezuela Europa for a 20% reduction in the price of fuel for London's bus fleet.
And the saving will be targeted on Londoners receiving income support who will be able to receive a 50% discount on bus and tram travel – up to 250,000 Londoners will be eligible.
London will provide specialist technical assistance to Venezuelan cities in areas such transport, protection of the environment, development of tourism, and town planning.
Ken Livingstone said: "This agreement will benefit up to a quarter of a million of the lowest income Londoners.
"Those on income support will be eligible to receive half price bus and tram travel – a benefit worth at least the equivalent of £280 a year.
"Other programmes by Venezuela to reduce the impact of energy prices on the least well off sections of society, such as Joseph P Kennedy II’s Citizens Energy programme in the US, have used this for heating homes.
"However in London too few people use this form of heating for it to be effective whereas London’s transport system, in particular its bus network, is one of the largest in the world and used by all parts of the population.
"At the same time it is a good deal for Venezuela. That country has started on the road of using its oil riches for the benefit of the majority of its population, which lives in cites, prioritising areas such as improving health care and the environment, public transport, better housing and town planning.
"This will gradually transform the quality of life for the majority Venezuela’s population, including replacing slums with modern towns and cities served by first class public services.
"London has invaluable expertise to contribute in this field and this will save Venezuela millions of dollars. Both London and Venezuela will be exchanging those things in which they are rich to the mutual benefit of both."
Minister of the Popular Power for Foreign Affairs Nicolas Maduro said: "This agreement will strengthen relationships between the peoples of London and Venezuela.
"It is a win-win strategy that fits within the policy of integration and the character of the Bolivarian Government of President Hugo Chavez."
Alejandro Granado, PDVSA’s Vice-President of refining and PSDV Europa’s Chairman of the Management Board said: "Venezuela is very rich in energetic resources while London has great expertise in successfully managing the infrastructure services that characterise a modern city.
"It is, therefore, very fitting that this co-operative initiative, proposed by President Chavez, focuses on these two areas of complementarity. This agreement, I am sure, will promote solidarity and bring forward mutual benefits for both the people of Venezuela and London."
Commenting on today's announcement, Child Poverty Action Group's Chief Executive, Kate Green,said: "Central London has the highest rate of child poverty in the country, with half of children living below the poverty line.
"Affordable travel is a vital part of social inclusion and this move will make London a more inclusive community for its poorest families.
"Two groups of families most vulnerable to child poverty are those with disabled people and those headed by lone parents. As the main recipients of Income Support, these families will be greatly helped.
"An adequate income is always the best way of lifting people out of poverty, and transport needs should be fully taken into account when setting benefit levels. But while Income Support remains paid at such poor rates, this kind of targeted support will always be welcome."
However, Richard Barnes, Deputy Leader of the London Assembly Conservatives, attacked the agreement, suggesting the Mayor sticks to regional matters rather than international affairs.
He said: “Why does London one of the richest capitals in the world need to exploit a developing nation? This money would be better directed at the poor of Venezuela.
"Ken has struck a dubious oil deal, the finer detail of which is unknown due to the secrecy surrounding it.
"London should not be doing business with third rate South American dictators with an appalling human rights and democratic record.”
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