Split in the ranks at Radio Taxis

13 April 2012

CABBIES are up in arms over plans to demutualise Radio Taxis and sell a quarter of the firm to an American investor.

While some members of the firm are in favour, others are vehemently against. The Transport and General Workers Union is launching a Vote No campaign at ranks across London.

Opponents are worried about losing control of the co-operative. Many dismissed the proposed £1,100 cash windfall as irrelevant and are sceptical about the value of the 1,000 shares in the new company they would each be issued.

Concerns were also raised about the 10% interest rate new investor Brian McBride is charging for a further £1.5m he is lending for the expansion plans.

Radio Taxis chairman Geoffrey Riesel denied there will be any loss of members' control and said the firm needed to raise money to expand into limousines, shuttle buses and courier services.

He stressed the drivers would not lose control as 75% of the shareholders would have to agree to letting someone have a majority interest. He added that the 10% rate was half what venture capitalists had demanded.

Figures today showed that after £1.4m was invested in the operation last year, the surplus before tax fell from £819,000 in 2002 to £127,908. Turnover dropped from £37.5m to £35.2m.

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