Boris and Ken clash over Venezuela fuel deal 'pay back'

Allegations that Boris Johnson has been 'forced' to give £7 million back to Venezuela following his decision to cancel the Agreement between Ken Livingstone and the Venezuelan government which exchanged cheap diesel for technical advice and assistance have been rubbished by the Mayor of London.

Under the Agreement, Londoners on Income Support received half-price bus and tram fares and, in exchange, London was advising on how to improve city management in key areas like public transport and protection of the environment in Venezuela.

According to Ken Livingstone, the deal was of mutual benefit to both parties as Venezuela is one of the world’s biggest oil producers, while London is one of its most modern and advanced cities.

One of Boris Johnson’s first actions when he took action as London Mayor was to announce that he would end the agreement and he immediately cancelled visits by technical experts to Venezuela.

He announced that the last half price travel permits for Londoners on London buses and trams would end six months after the Agreement ends on August 20.

Mr Livingstone alleged today that Boris Johnson’s decision will cost £7 million pounds, nearly half the annual value of the deal, which will have to be paid back to Venezuela - a claim vehemently denied by the Mayor of London's press office.

In a statement, Ken Livingstone said: "It is revealing that the Mayor’s administration decided to break the news, with a statement by an official spokesperson of Transport for London, Matt Brown, on Sunday in the Venezuelan newspaper El Universel, rather than making any statement to Londoners or the media in the capital.

“Boris Johnson’s ideologically-motivated move to cut off technical assistance to Venezuela will cost London a cool £7 million as well as doubling fares for some of the poorest people in the capital, when energy prices are at their highest levels in history.

"Boris Johnson talks about saving money but, in reality, he is already costing Londoners a fortune.

“It is remarkable that he did not even inform Londoners that they will have to pay £7 million for his policy and instead leaked the news in Latin America.”

A spokesperson for London Mayor Boris Johnson said: "The story is incorrect. As yet, no money has been returned, and no-one is being "forced" to do anything.

"Livingstone should have got his facts straight before attacking the Mayor in the media. 

"The fact remains though that, under the widely derided deal, Venezuela - a very poor country, has given London - one of the world's richest cities, some £16m of which several million has not been used.

"Boris Johnson feels that this was a morally bankrupt approach, and it would be ridiculous if unspent money was not returned. Negotiation between the parties will decide the final amount.

"The Mayor is discussing with TfL how best to ensure that low income Londoners who rely on the public transport system will continue to get the assistance they require."