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Livingstone secures cheap oil from Chávez
By Tom Burgis
Published: February 20 2007 11:51 | Last updated: February 20 2007 11:51
President Hugo Chávez’s “21st century socialism” reached the UK yesterday when Venezuela signed an agreement to subsidise the fuel bill for London’s buses by up to $32m (£16m) a year to fund cheap travel for the capital’s poor.
Ken Livingstone, the city’s mayor, said the 20 per cent discount would fund half-price rates on buses or trams for 250,000 Londoners who receive income support.
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“This arises on the suggestion of President Hugo Chávez and builds on the work his government is doing around the world in tackling the problems of poverty,” he said.
In return, the controversial Labour mayor will in April dispatch his transport chief, Peter Hendy, to set up an office in Caracas, where British officials will impart to the Venezuelan capital London’s expertise in traffic management and urban planning.
The scheme, which will run from July, will see Petróleos de Venezuela, or PDVSA, the state-owned oil company, pay cash to Transport for London, which will reimburse private bus operators for the discounted fares.
It was first mooted during an unofficial visit to London last May by Venezuela’s firebrand leader, whose “Bolivarian revolution” has included funnelling cheap oil to allies and to poor communities from Bolivia to the Bronx.
Mr Livingstone acknowledged that the cost of his mission to Caracas will be substantially lower than the value of the fuel subsidy, prompting critics to ask why a developing Latin American nation was offered cash to support a global financial centre.
Richard Barnes, deputy leader of the opposition Conservative group in the London Assembly, said: “For the mayor to develop a foreign policy of his own is a nonsense. We are a G8 [Group of Eight] capital city and we are getting foreign aid.”
Despite being the world’s fifth largest oil exporter, over a third of Venezuela’s households continue to live in poverty, according to official figures.
Nicolas Maduro, Venezuelan foreign minister, defended the move as a “win-win deal” designed to help create “a multipolar world based on solidarity”.
Mr Chavez has used offers of discounted oil supplies as a tool to capture support from far-flung political allies. The most extensive deal is with Cuba, which receives some around 90,000 barrels per day in fuel from Venezuela.
As part of the original deal with Mr Livingstone, which has been in the works for at least a year, the mayor of London’s office had pledged to “actively and efficiently promote Venezuela’s image in the UK”.
Additional reporting by Andrew Webb-Vidal in Caracas
By Tom Burgis
Published: February 20 2007 11:51 | Last updated: February 20 2007 11:51
President Hugo Chávez’s “21st century socialism” reached the UK yesterday when Venezuela signed an agreement to subsidise the fuel bill for London’s buses by up to $32m (£16m) a year to fund cheap travel for the capital’s poor.
Ken Livingstone, the city’s mayor, said the 20 per cent discount would fund half-price rates on buses or trams for 250,000 Londoners who receive income support.
ADVERTISEMENT
“This arises on the suggestion of President Hugo Chávez and builds on the work his government is doing around the world in tackling the problems of poverty,” he said.
In return, the controversial Labour mayor will in April dispatch his transport chief, Peter Hendy, to set up an office in Caracas, where British officials will impart to the Venezuelan capital London’s expertise in traffic management and urban planning.
The scheme, which will run from July, will see Petróleos de Venezuela, or PDVSA, the state-owned oil company, pay cash to Transport for London, which will reimburse private bus operators for the discounted fares.
It was first mooted during an unofficial visit to London last May by Venezuela’s firebrand leader, whose “Bolivarian revolution” has included funnelling cheap oil to allies and to poor communities from Bolivia to the Bronx.
Mr Livingstone acknowledged that the cost of his mission to Caracas will be substantially lower than the value of the fuel subsidy, prompting critics to ask why a developing Latin American nation was offered cash to support a global financial centre.
Richard Barnes, deputy leader of the opposition Conservative group in the London Assembly, said: “For the mayor to develop a foreign policy of his own is a nonsense. We are a G8 [Group of Eight] capital city and we are getting foreign aid.”
Despite being the world’s fifth largest oil exporter, over a third of Venezuela’s households continue to live in poverty, according to official figures.
Nicolas Maduro, Venezuelan foreign minister, defended the move as a “win-win deal” designed to help create “a multipolar world based on solidarity”.
Mr Chavez has used offers of discounted oil supplies as a tool to capture support from far-flung political allies. The most extensive deal is with Cuba, which receives some around 90,000 barrels per day in fuel from Venezuela.
As part of the original deal with Mr Livingstone, which has been in the works for at least a year, the mayor of London’s office had pledged to “actively and efficiently promote Venezuela’s image in the UK”.
Additional reporting by Andrew Webb-Vidal in Caracas
I remember Chavez offering Oil to NY during the last (real) Winter.
So what do you think?
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