The September issue of Call Sign contained many comments by the Chairman on matters which I myself had in mind as potential subject matter. Despite, therefore, having had my thunder stolen, I shall have a go at delivering something which may interest readers.

Subscriptions
We are nearing the end of another successful year, although one which may not be quite as good as last year. Our gross profit has increased, but we have also spent more on raising the profile of DaC, but nonetheless, still an excellent result.
   Furthermore, although we raise less than 30% of total income from members, the fact that we have not been raising subs does have an effect. Around £1 a week per member would generate an additional £100k per annum with which we could perhaps have registered yet another record year.
   This is an income source which I understand our competitors have continued to exploit. However, being mindful of the mutual nature of this organisation and the fact that surpluses can only be ploughed back into the business or retained indefinitely, raising subscriptions is not needed if it is only to meet PR ambitions rather than solid financial objectives. Although we are hoping to place orders for new terminals before too long, I expect to recommend financing them in a way which is least painful to the membership.

Organic Growth or Acquisitions?
There was recently an article in the financial pages of one of the daily newspapers which argued that the objectives and rationale of mutual organisations such as the AA (or indeed ODRTS, although we were not mentioned) tend to diminish once they become profitable and especially when operating in a competitive environment. Some of the original bases for setting up such enterprises, namely self-help, sacrifice of self for the common good, goodwill and the spreading the burden of misfortune of one amongst the many, tend to become less meaningful once the organisation achieves a certain size and complexity.
   I have been asked what effect the Comcab take-over of Datacab will have on us. I really do not see it as presenting a major change from what is already going on in the market. It seems to have been an expensive price to pay for drivers and turnover which can all too readily transfer to other circuits, particularly if the business is to continue to operate independently. Given a choice, I would always prefer in a service industry such as ours, to grow organically rather than to expand by acquisition.

The debate on offering a wider range of services to clients will continue for a long time yet. In a commercial organisation where the objectives are to serve the interests of the members, it can sometimes be said that you can ignore the needs of the customer. Indeed, I can remember hearing vigorous comments made to the effect that the fare-paying customer is lucky to be served by the taxi trade, strengthening the view that the fare-paying customer is of little significance. This is a dangerous stance to adopt unless the service-provider, in our case the Society, is absolutely guaranteed to be able to keep its leadership unchanged and without challenge.
Some may think that members' best interests lie in the Society confining itself strictly to it's principal objective, the supply of the taxi services of its members to its customers. Anything else would be a 'betrayal' of its origins. Others may consider it worthwhile offering almost any service (particularly if it serves to keep subscriptions down) which retains as much work for members as the customers are prepared to offer. As usual, no clear, right answers exists where there is a lack of the profit objective and the leadership are elected to look after members' interests, of which there are as many as there are members.

Alastair Hill