The London Assembly has ordered an investigation into details of the ‘oil for advice’ deal signed between the London mayor and Venezuela’s state-owned oil company, Petroleos de Venezuela Europa.
The assembly’s budget committee was instructed to scrutinise the deal, after several members criticised Ken Livingstone’s actions during question time on Wednesday. Livingstone signed the contract in a bid to purchase oil with a 20% discount, so that up to 250,000 Londoners on income support might receive 50% off their bus and tram fares, ‘a benefit worth at least the equivalent of £280 a year’, he said.
In return, London would provide specialist technical assistance to Venezuelan cities in areas such as transport, protection of the environment, town planning and development of tourism. The 20% discount will be calculated on the prevailing world price of oil, assessed twice a year. ‘The saving is equivalent to slightly under 1% of the total cost of providing London’s bus service,’ Livingstone said in a press release this week. However, assembly members raised concerns about how much research had been undertaken before the deal was signed.
Livingstone has also attracted criticism for sending out a mixed environmental message, even though he said the agreement would not lead to an increase in the London bus fleet’s oil consumption. Green Party assembly member Cllr Darren Johnson said in a statement: ‘The mayor is telling Londoners to take action on climate change by driving less, then he sends out the opposite message by grabbing at the chance of some cheap oil.’ A spokeswoman for the mayor said investigations were still under way in the search for clean fuel for the city.
Register now for full access
Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.
Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors.
Use the link below to register your details for full, free access.
Already a registered? Login
