Call Sign October 2008 - Page 4 - REFLECTIONS OF THE CHAIRMAN

Turbulent September What a month September was! What with the Financial Institutions in turmoil and then the problem with the ‘56’ plate TX4s catching fire, I am really pleased that September has now departed. Beginning with the financial institutions; I still find it quite remarkable that companies such as Bear Sterns, Lehman Brothers and even Merril Lynch have experienced such turmoil, it does appear that in the main, it is the investment banks that are experiencing most mayhem. Then of course you get the traders that just add to the uncertainty by exploiting the nervousness in the system with short term buying; consequently, people relinquish their shares in financial institutions forcing the shares to fall even further. No doubt many people have made a great deal of money from the situation, but I am very pleased that the British and American governments acted so swiftly in order to help remedy the situation. Not only has billions of dollars been poured into the American financial institutions by the government, it has also helped to restore some confidence to the market. But with that type of investment, the American government has mortgaged its future for many years to come. Although, as I have already written, I’m pleased that governments have attempted to bring some stability to the market place, there is however a part of me that feels that the chips should stay where they fall. In other words, if the businesses are so poorly managed and go bankrupt, they should be allowed to fall – but of course I understand that would not be allowed to happen due to the panic that would be instilled into the public at large. I wonder what would happen if Dial-a-Cab was so poorly managed that this business failed? I wonder if the government would intervene in order to remedy the situation – I think we all know the answer to that! So in the main, yes, I’m pleased the situation is being dealt with and many ordinary employees will not be losing their jobs. It was getting to a situation where I was dreading turning the news on in the morning for fear of what might be announced regarding the banks. Anyway, we can now look forward to some really drastic cost cutting by the banks and others, no doubt they have already had a meeting and decided to attempt to regain their	losses by cutting down their taxi usage and endeavouring to force down our administration charges! As I reported last month, the last third of our financial year showed a downward trend compared with the corresponding period for the previous year and I cannot see a reason that would prevent this trend continuing over the short term. But I have absolutely no doubt that we will weather the storm, mainly due to the fact that we do not have any debt that has to be serviced, that will be a terrific advantage for us compared to others in our industry. Consequently, in the short term we will all have to cut our suit according to the cloth, but what is extremely important is that the media latch on to some stories where the situation has improved - such as sales being up at John Lewis during August. It is so important that confidence is restored as quickly as possible, as a lack of confidence by the public is one of the main reasons for the downturn. TX4’s As if the turmoil in the economy wasn’t enough, we then get a situation where the trade is	experiencing unexplained fires with the ‘56’ plate TX4s. Although the vehicles were being recalled, LTI could not find a reason why the taxis were catching alight, so at the time of writing all the ‘56’ plate TX4’s have had their licences temporarily suspended whilst the fault is being investigated. I have never known a situation like this and I am pleased to see that it appears LTI will be compensating drivers who through no fault of their own, could not work. It’s a terrible situation for the drivers involved regarding their finances and I know it is easy for me to say, but they should try to look on the bright side because it could have been only a matter of time before a member of the public or a driver lost their life due to the fault with the vehicle. So at a time when all the corporates are endeavouring to cut back on their taxi usage, we get this bad publicity concerning our trade. As I’ve said, I have never known anything like it. I was even receiving emails and telephone calls from the PCO on a Saturday! I will be interested to read what our own Editor has to say about the situation, because I do tell him he is becoming paranoid regarding the new Mercedes, not a day goes by without him moaning about something or the other regarding the Mercedes. So I will be interested in his views on this particular topic. Brian Rice Chairman Dial-a-Cab
	Stop Press TX4 fire problem cured! As Call Sign went to press, we have heard that the cause surrounding the instances of 12 early model TX4s catching fire has now been discovered. LTI had employed independent fire investigators, leading engineering company Ricardo and TX4 engine manufacturer VM Motori, to assist in finding the cause of the fires and as a result have now identified a range of solutions designed to stop the under bonnet fire those twelve early TX4s suffered. LTI will now replace the exhaust gas recirculation pipe, fit a sleeve to it and install a heat shield over it. They will also replace the bulkhead noise vibration and harshness pad with one of a new design and material in addition to thoroughly inspecting all pipe runs and wiring for evidence of unusual wear and replace as necessary. In an effort to assist in rebuilding driver confidence in the TX4, LTI will also fit a fire suppression system. The work will be carried out at Mann & Overton on a day / night shift and will utilise thirty ramps and sixty technicians to initially rework approximately 50 vehicles per 24-hour period. Drivers will be contacted by LTI in ascending VIN number order and requested to leave their vehicle at M&O for the day (or night) work to be carried out. Drivers will need to adhere to the booking system and are asked NOT to call M&O or LTI regarding the booking process. LTI have assured us that drivers they will be called in the VIN sequence described above. BBC reports of a further 1000 cabs being taken off were completely untrue. The process is estimated to be costing LTI around £4million…