Press Release

Quarter of a million Londoners on income support to get half price bus and tram travel
20-2-2007   103

The Mayor of London, Ken Livingstone, today at City Hall signed an agreement with the Venezuelan oil company Petróleos de Venezuela Europa for a 20 per cent reduction in the price of fuel for London's bus fleet.

After discussion between Petróleos de Venezuela Europa and the Mayor this benefit will be targeted on Londoners receiving income support who will be able to receive a 50 per cent 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 energy 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.’

Ends.

Notes to Editors

• The 50 per cent reduction in bus and tram fares will be in programmed onto special Oyster cards available to all of those in receipt of income support. It is planned that the scheme will become operational in July this year.
• The scheme will lead to no increase in the London bus fleet's consumption of oil, and therefore no increase in carbon emissions – it will simply enable the existing quantity of oil to be purchased at a 20 per cent discount aiding Londoners on income support.
• The 20 per cent discount will be calculated on the prevailing world price of oil, assessed twice a year. The saving is equivalent to slightly under one per cent of the total cost of providing London's bus service.

The Energy Funding Contribution and Co-operation Agreement is available from london.gov.uk

Statements from third party groups in support of the agreement is also available from london.gov.uk

For media inquiries please contact the Mayor's Press Office on 020 7983 4070
For out of hours media enquiries please call 020 7983 4000
For non-media enquiries please call the Public Liaison Unit on 020 7983 4100

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