TAXI DEAL

Otago Daily Times, Issue 26198, 8 July 1946, Page 4

TAXI DEAL

GOLD BAND COMPANY A CHANGE OF OWNERSHIP SEVEN LICENCES FOR EX-SERVICEMEN As from to-day Ownership of the well-known firm of Gold Band Taxis will pass into the hands of Dunedin Taxis, Ltd. The transfer has been effected after negotiations between the new owners, the Rehabilitation Department and the chairman of the Metropolitan Licensing Authority (Mr L. J. T. Ireland), and, as the result of an offer by Dunedin Taxis, seven of the eleven licences held by the Gold Band firm will be made available for returned servicemen. Appreciation of the action of Dunedin Taxis, Ltd., was expressed last night by Mr Ireland when inquiries regarding the transfer were made by the Daily Times. “ I think they have done a very good thing,” he said. Mr Ireland explained that licensing authorities had no control over shares in transport companies. Having purchased the business conducted by Gold Band Taxis, Dunedin Taxis, Ltd., could have continued to operate it, making full use of all the 11 licences held by Gold Band. Dunedin Taxis had, however, voluntarily offered to make seven of these licences available to suitable exservicemen approved by the Metropolitan Authority. The offer had been discussed with the authority and the Rehabilitation Department, to both of whom it was very acceptable. Cars for New Operators Mr Ireland added that Dunedin Taxis, Ltd., was in need of the cars at present used by the Gold Band firm, and the Rehabilitation Department hoped to be able to obtain from the army or other service departments cars which would be suitable for the returned men . who would take over the seven licences now-to be made available for them. The cars included in the deal made by Dunedin Taxis had run up a considerable mileage, and it was probable that only a firm with the resources which it possessed could keep them profitably on the road. It was hoped that the servicemen obtaining the licences would be able to start operations with cars in first-class order, and Dunedin Taxis had made what Mr Ireland thought was a very good offer to lend cars from its own fleet to these men until they could obtain vehicles of their own either privately or through the Rehabilitation Department. Dunedin Taxis would also retain all employees of the Gold Band company who wished to remain. • >•

“ Personally, I am very pleased with the whole thifig,” Mr Ireland continued. He pointed out that one satisfactory aspect of the arrangement was that the Licensing Authority would have at its disposal seven licences over whi r h it would otherwise have had no control. There were no ties attached to the licences which Dunedin Taxis was making available for the ex-servicemen. These : men would be free to operate privately, to form themselves into a group, or to operate with any other organisation. Replacements Needed

Mr A. E. Gardner, managing director of Dunedin Taxis, Ltd., which holds 54 of the 123 taxi licences bn issue in the metropolitan area, stated last night that Gold Band Taxis would continue to operate under its present name and at the existing depot. The primary object of his firm in concluding the deal had been to obtain, as replacements for its own fleet, the cars which Gold Band 'Taxis operated. Dunedin edin Taxis had also- wished to maintain in operation a business which had served the city for many years and which conducted operations of some magnitude apart from the ordinary transport needs of individual members of the public. He thought the Rehabilitation Department would agree that the costs involved in a change of ownership were too high to allow the Gold Band firm to be taken over as a going concern by ex-servicemen, or even to be split up and taken over by them as individual units. Mr Gardner confirmed Mr Ireland’s statements concerning the terms under which licences would be made available to ex-service-men, and also stressed the readiness of Dunedin Taxis to provide cars to enable* the new licence-holders to operate until they had obtained their own vehicles. “The licences,” he said,, “ are to be handed to the Licensing Authority without any tags. The men can operate when and where they please, subject only to the discretion of the authority.” It has been ascertained that the firm of Red Band Rentals, which for- many years has been conducted in conjunction with Gold Band Taxis, will continue to .operate independently and under separate ownership.-